The Wall Street Journal reports that Democrats are talking about raising taxes $400 billion, because they say it’s all about “fairness.” Seriously.
Democrats say significant tax increases are required for fairness, to offset the deep cuts to government services that will make up the bulk of deficit reduction.
And there’s more – more class warfare, higher taxes on oil companies that will be passed along to consumers, and other job-killing taxes.
Democrats argue that high-income people unfairly benefit from any given tax deduction now more than middle-class people do, just because they are in higher tax brackets. The White House proposal would hit families earning more than $250,000, and individuals earning more than $200,000.
That proposal would raise about $290 billion over the next decade. Mr. Obama has made similar proposals before, but Republican aides term the idea a nonstarter. Some Democrats have floated the idea of raising the income threshold to $500,000 or $1 million instead.
A second proposal has gotten little attention but could have a big impact, ending a longstanding method of tax accounting for business inventories.
The last-in-first-out (or LIFO) method lets companies figure the cost of goods they have sold at the most recent market prices paid, even if they purchased the items at lower prices. Being able to list higher expenses makes a company’s taxable income smaller. This change could bring in $60 billion or more over 10 years. LIFO supporters believe perhaps one-third of all U.S. businesses take advantage of LIFO, and they are fighting the repeal.
The administration also is pushing for repeal of a range of subsidies for the oil and gas industry. Mr. Obama says these breaks encourage over-investment in oil and gas and conflict with his clean-energy aims.
The major items include special expensing and depreciation rules for drilling and production, as well as a deduction for domestic manufacturing. Repealing these breaks for oil and gas producers could raise as much as $45 billion over 10 years. But versions of this idea already have been blocked or defeated in the Senate over the past year. …
Read the whole thing, the Democrats are wrapping it all in Alinskyite fairness rhetoric, and it seems a few Republicans are starting to warm to some of their ideas. Senator John McCain is one of them, of course. But he says he’s only interested in raising revenue, not taxes. Why even consider revenue increases when Obama’s thinking about simply ignoring the debt ceiling? Plus, we all know what happens when they raise taxes – they spend more money! They have an insatiable appetite for tax dollars. Enough is enough, we all live within our means, it’s about time they start doing it.