Raise Taxes on Whom?

Facts matter: Sign up for the free Mother Jones Daily newsletter. Support our nonprofit reporting. Subscribe to our print magazine.


It’s hard to know what the Bush administration plans to do with this:

President Bush’s tax advisory commission indicated on Tuesday that it would not propose replacing the income tax with a national sales tax or a value-added tax, but would recommend limits in the popular tax deductions for mortgage interest and employer-provided health insurance.

Interesting. Depending on how that mortage-interest deduction gets phased out, a lot of home values could end up dropping as a result, on the theory that currently, many folks are already bidding up the price of homes until it roughly offsets the value of the deduction. Since the deduction would only be limited rather than eliminated, I’m guessing this would disproportionately affect the upper-middle-class. (Same with the health care deduction for businesses, which is largely regressive.) To balance against this, the commission has recommended eliminating the Alternative Minimum Tax, which would give many of these—presumably upper-middle-class—homeowners an offsetting tax cut, depending on the details, but ultimately, the bulk of the AMT affects high income-earners, primarily. Best to wait until CBPP comes out with an analysis before judging.

In the past, the White House has screwed the poor in order to benefit the well-off; but creating winners and losers among the upper-middle class? Seems treacherous. Or maybe not: Kevin Drum once noted that this constituency is the easiest group for the Republicans to abandon when it comes to tax cut politics. Guess he was right.

Oh, and a flat tax is still under consideration.

REAL QUICK, REAL URGENT

Minority rule, corruption, disinformation, attacks on those who dare tell the truth: There is a direct line from what's happening in Russia and Ukraine to what's happening here at home. And that's what MoJo's Monika Bauerlein writes about in "Their Fight Is Our Fight" to unpack the information war we find ourselves in and share a few examples to show why the power of independent, reader-supported journalism is such a threat to authoritarians.

Corrupt leaders the world over can (and will) try to shut down the truth, but when the truth has millions of people on its side, you can't keep it down for good. And there's no more powerful or urgent argument for your support of Mother Jones' journalism right now than that. We need to raise about $450,000 to hit our online fundraising budget in these next few months, so please read more from Monika and pitch in if you can.

payment methods

REAL QUICK, REAL URGENT

Minority rule, corruption, disinformation, attacks on those who dare tell the truth: There is a direct line from what's happening in Russia and Ukraine to what's happening here at home. And that's what MoJo's Monika Bauerlein writes about in "Their Fight Is Our Fight" to unpack the information war we find ourselves in and share a few examples to show why the power of independent, reader-supported journalism is such a threat to authoritarians.

Corrupt leaders the world over can (and will) try to shut down the truth, but when the truth has millions of people on its side, you can't keep it down for good. And there's no more powerful or urgent argument for your support of Mother Jones' journalism right now than that. We need to raise about $450,000 to hit our online fundraising budget in these next few months, so please read more from Monika and pitch in if you can.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate