Doing the Math

The Democrats seem to be in a state of civil war over the budget and debt reductions. The cliche about when you find yourself in a deepening hole you should stop digging is not in their repertoire. The Bamster seems to recognize that the 2010 election outcome and the will of the working people in America demands that we cut the redistribution spending and reduce taxes to get people back to real private sector jobs. The rank-and-file in the legislature doesn't seem eager to forego their power to send the wagons into their districts to distribute bread and invite the voters to the Circus Maximus. They still want to tax the successful and give to the failures of life.

WaPo Outlines Dem Budget Plan

When you stumble over seemingly outrageous numbers it is often a good idea to do a bit of simple math. Try this example for starters:

It would also scale back the array of tax breaks and deductions known as tax expenditures, perhaps by focusing on the wealthiest households, which claim an average of $205,000 in tax breaks each year on average income of $1.1 million.

OK, that sounds like a real abuse of the deductions doesn't it? Grabbing a reduction of your gross income of more than $200k is a lot. Now, consider that it means that the $1.1 M gets reduced to $900,000 and you're getting upset that these fat cats can't give up those deductions and pay their fair share!

But, then notice that with a marginal tax rate of 39.6% they will be coughing up in the neighborhood of  $350,000. Throw in some state income tax and some self-employment tax and maybe a FICA contribution and it gets a bit harder to maintain the argument about "paying their fair share", doesn't it?

Now, take that tool and go forth to spread the gospel.