Democrats Reveal Tax Proposals — Triggering Complaints that Some Rates Threatened to Go as High as 57 percent

Many of us have expressed concern about the pork-laden appropriation bills and stimulus package this year. Just as Republicans showed little restraint in spending in the war bills, Democrats have treated the economic recovery bills as a license for unlimited spending. Now, massive taxes and sur-taxes are being proposed. New York officials are complaining that, if passed, the rate for some of its citizens could reach almost 60 percent. Some Democrats are now seeking to reduce a proposed 5.4% sur-tax to 1 %.

The taxes are being proposed to reduce the towering deficit and pay for the national health care plan — which the Obama administration is pushing through as a breakneck speed — demanding passage by the August recess. This reminds many of us of the Patriot Act where precious little time was allowed to consider its implications and language.

However, the New York Times has an editorial detailing the fairness of the plan and questioning the criticism over tax increases. I happen to support the policy agenda of the Administration in this area, but I think that the administration can be faulted for pushing such an important piece of legislation through on an expedited schedule.

Biden reportedly entered the fray today with a classic statements: “Well, people when I say that look at me and say, ‘What are you talking about? You’re telling me we have to go spend money to keep from going bankrupt?’” Biden said. “The answer is yes, I’m telling you.”

Nevertheless, opposition to the sur-tax is growing among Democrats and Pelosi is indicating that she may try to reach a compromise, here.

For the New York objections, click here.