Wednesday, January 17, 2007

Surprise of the Day: Dems To Raise Taxes

Flopping Aces has an article from a subscription-based website about how the Democrats have begun (like they weren't already planning it) discussions on implementing new taxes:

Senate Democrats are considering a step in the politically sensitive direction of tax increases, but only to offset an $8.3 billion package of new tax breaks.

Finance Chairman Max Baucus, D-Mont., proposes to limit deferred compensation to business executives to $1 million annually in the Senate version of a measure (HR 2) that would increase the federal minimum wage to $7.25 an hour and provide small-business tax breaks.

The Finance panel is scheduled to mark up the legislation Wednesday.

House and Senate tax writers are at odds on the small-business tax provisions. New York Democrat Charles B. Rangel, who chairs the House Ways and Means Committee, wants to keep the minimum wage bill free of tax cuts.

The House has a new pay-as-you-go rule that requires offsets for the cost of any new tax cuts or entitlement spending.

According to lobbyists and aides in both parties, a list of offsets circulated by Baucus includes the plan to raise $806 million in revenue over 10 years by capping the amount of compensation that can be deferred annually. Pay above the amount that could not be deferred would be subject to the top federal income tax rate of 35 percent.
Why can't Democrats wrap there sometimes bizarrely shaped heads around the idea that lower taxes leads to higher government revenue?

As mentioned above, the rest of the article is pay-to-read, but Flopping Aces has been kind enough to post the whole damn thing.

Also, congratulations to Flopping Aces for the "Obvious Headline of the Day":
Democrats Consider Tax Hikes

While I'm talking about Flopping Aces, they've found a great liberal conspiracy about Donald Rumsfeld being responsible for bombing the Pentagon.

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