Wednesday, September 01, 2010

The Problem, In A Nutshell

Is this:

Democrats in Congress are poised to play a leading role this month in thwarting their party's effort to raise income tax rates on the wealthy.

Tax cuts enacted in 2001 and 2003 expire at the end of this year. President Barack Obama and Democratic congressional leaders have been eager to extend the breaks for individuals who earn less than $200,000 annually and joint filers who make less than $250,000. Those who earn more would pay higher, pre-2001 rates starting next year.

However, a small but growing number of moderate Democrats are balking at boosting taxes on the rich. Many face electorates that recoil at the mention of any tax increase. Some represent areas that are loaded with wealthier taxpayers. Further, some incumbent senators who don't face voters this fall are reluctant to increase taxes on anyone while the economy remains sluggish.

Without their support, the push to raise rates on the rich probably will fail.

This world looks more and more like Ankh-Morpork of Terry Pratchett's DiscWorld series. Or put in other terms: If I wanted to do a funny parody of tax hikes and Americans, it would be what's going on in the U.S. Congress right now.