Compare the Tax Cuts

Comparing the Obama and Bush tax cutsThere are currently up for debate two opposing plans to cut federal income taxes.

  • The GOP-backed plan to extend the Bush tax cuts of a decade ago, which are set to expire.
  • A new Democrat-backed Obama-proposed tax cut.

A Washington Post piece by economic analyst Ezra Klein showed this simple chart to give an idea of how much tax cuts would come to each person, based on their income. It’s pretty clear that if the Bush tax plan is extended. the richer people get the greater your tax cut. By far.

I have heard the argument that rich folks drive the economy because they own the small businesses, and so logically they should have larger tax cuts than the rest of us. But these are personal income tax cuts and not corporate tax cuts. I favor the European model, where wealthier people pay higher personal taxes. I realize that idea is unpopular, but those countries seem to be able to weather financial crises without devastating the middle class.

Unemployment in Norway is currently 3.5%, Austria is 3.9%, Switzerland is 4%, Denmark is 6.6%, Germany 7%, the UK is $7.8, Italy 8.5%, Belgium is 8.6%. The U.S. unemployment rate is 9.5%, about the same as that of Poland, Bulgaria, and Croatia. Here in Oregon it’s 10.6%, higher than that of Hungary.

Let’s make it simple: I’d like a full-time job. Britney Spears doesn’t need a tax cut.

Click the chart for a larger view, but be sure to see the original article for more details and the sources for the raw numbers.

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