Sunday, November 26, 2006
John W. Lee III (William & Mary) has published Class Warfare 1988-2005 Over Top Individual Income Tax Rates: Teeter-Totter From Soak-the-Rich to Robin-Hood-in-Reverse, 2 Hastings Bus. L.J. 47 (2006). Here is part of the Introduction:
Ideally the tax cuts should be reversed now. Given the narrowness of the victory of the Clinton 1993 tax increases at the top when the Democrats had majority control of both Houses, this is unlikely. Even if the GOP lost control of Congress in the upcoming mid-term elections, a reversal is unlikely under President George W. Bush since he surely would veto any reversal of his tax cuts and opponents of the cuts would not likely be able to override any such veto.
The second best alternative is for these cuts to expire pursuant to their various sunsets. A better alternative would be to narrow the gap between the pre-Bush II tax cuts maximum individual capital gains (20%) and ordinary income tax rates (approximately 42% taking account of the PEP and Pease phase-outs).