Yes, I believe later on there should be tax increases. Speaking personally, I think there are a lot of very rich people out there whom we can tax at a point down the road and recover some of this money.
--Rep. Barney Frank on CNBC's "Closing Bell," 10/20/08)
Don't let the class warfare jargon fool you, this is not good news. Why? Because the Democratic plan will harm small business owners who have their business income reported on their personal taxes and two, there is no way for them to “cut taxes on 95% of American taxpayers” and only raise the rates on the top 5% and still keep all their promises. That is, assuming they intend on keeping those promises in the first place. Keeping fiscal promises is not a Democratic Party strong suit. Consider this analysis by the nonpartisan Tax Foundation:
To the surprise of some, even though Senator Obama's tax plan lowers taxes for the bottom four quintiles, marginal tax rates would fall only for the very l... [Read Full Article]