Tuesday, December 06, 2005

Democrats want to cut taxes for the wealthy 
Democratic congress members are jumping onto calls to roll back or eliminate the Alternative Minimum Tax, or so says the Wall Street Journal.


But an AMT elimination will cost the Treasury some 29 billion dollars! How will they pay for it?

For background on the AMT, click here: http://registeredrep.com/mag/finance_honey_shrunk_amt/index.html (Hey, who's that writer?)

Well, the answer is that any significant AMT relief will be borne primarily by people in the heartland and by working families. If the Democrats are going to be deficit conscious, and play the fiscal conservative role that should rightly be borne by Republicans (who have abdicated their responsibiities in this regard), any AMT relief will be offset, one way or another, by cuts in services, or by tax cuts to working Americans foregone.

What it really means is that people in Oklahoma will be indirectly subsidizing the outsized property values of beach home dwellers along the coasts, and the outsized home mortgage interest deductions they can therefore claim.

It's amazing to me that the same people who argue that we need an estate tax, and who opposed raising the estate tax uniform exemption above 1 million dollars in total wealth, will then go to bat for the same population.

I'm for low taxes and fiscal restraint. But let's do so in a way that's equitable to heartlanders and coastal dwellers alike.

Splash, out


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