One tax increase for which both parties bear the blame
Last week on the Washington Post’s Wonkblog, Ezra Klein wrote a piece arguing the following: “The big lie of the fiscal cliff is that the argument is between Democrats who want to raise your taxes and Republicans who want to cut your taxes. That’s wrong. Republicans want to raise taxes on more people than the White House does.”
Klein is referring to two issues: the end of an expansion of the earned-income tax credit, and the expiration of the payroll-tax cut. Democrats appear to support extending the former, which House GOP plans have not done — but most people would dispute his contention that limiting a refundable tax credit, essentially a check the government mails to low-income workers, is really a tax hike, since it doesn’t increase the amount they pay in taxes. The expiration of the payroll-tax cut, however, is a true tax increase: It will raise taxes significantly on almost every working man and woman in America — and regardless of what Klein says, the White House and congressional Democrats support a deal that to make this happen, too.