Sunday, September 26, 2010

Related to Kozol...

I was thinking about the discussion we had on Kozol on Thursday when I was reading this article in the NY Times this morning (yes, unlike in Mott Haven, it is delivered in my neighborhood and I can get it on my phone).

When George W. Bush was president, he instituted some temporary changes in the tax rates, allowing for people at the higher end of the income bracket -- who make more than say $200,000 a year -- to pay LESS in taxes. This was short term measure designed to stimulate the economy. Well, these "tax-cuts" are about to expire at the end of the year -- as expected. (Everyone knew they would -- they were only put in place as a short term solution.)

When the temporary rates expire, the tax rates will go UP for the people at the wealthier end of the spectrum; but author Richard Thaler explains that the taxes aren't really going "UP" per se... they are just returning to the rates that were in place before this special "temporary tax cut" was implemented. (For more discussion of the "tax cuts," read here)

The Republican leadership in the House are fighting to keep those "tax-cuts" in place. Richard Thaler thinks of it this way:

"The question comes down to whether we want a society in which the rich take an ever-increasing share of the pie, or prefer to return to conditions that allow all classes to anticipate an increasing standard of living. Demanding that the rich get a tax cut as a condition for tax relief for others is simply elitist."

I think that Kozol would cite this as furhter evidence of the culture of power keeping poor people in their place.

What do you think??

1 comment:

  1. I do remember my Econ professor saying that the "trickle down effect" (one of their main arguments for giving the wealthy tax cuts) does have some validity. However, I think evidence show us that the economy only got worse after all the policies Bush enacted. Regardless of the fact that I have no respect for the man's intellect, (do some research on "Bushisms" - funny and tragic at the same time) I agree with what Kozol would have to say about it.

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