November 20, 2008
A Real Middle Class Tax Cut
I have had my differences with Speaker Gingrich. Many, many as it happens. But I have always respected his ideas and his pragmatism.
Today, he pens an excellent guest editorial in the WSJ. Gingrich would love to cut corporate taxes and marginal rates on the most productive American workers -- but he watched the elections results and knows that the evil "rich" are not in line under an Obama Administration and 111th Congress. So he suggests stripping the welfare portion of Obama's plan and enacting a real middle class tax cut.
For a real middle-class tax cut, we should cut the 25% income tax rate that now applies to single workers earning $32,550 to $78,850, and married couples earning $65,100 to $131,450. We should reduce that rate down to the 15% rate paid by workers below these income levels. That would, in effect, establish a flat-rate tax of 15% for close to 90% of American workers.
I think he's got it here. President Obama comes through on a campaign promise, creates a fairer, flatter tax system, provides a supply-side stimulus to the economy (shhh, we won't call it supply-side outside of ThreeSources).
Good politics, good policy, good economics.