Letters to the Editor
Published 1:02 am, Thursday, April 8, 2010
Himes and the
90% tax bracket
To the Editor:
In a push for ever more spending, taxes and regulation, our incumbent congressman, Jim Himes, has favored a role for government wherein economic winners and losers are increasingly picked in Washington, D.C. So, it seems reasonable enough for us to ask, "Who is winning and who is losing?"
WINNERS: The government has been particularly generous to itself over these past few years. The public sector is enjoying a bull market with an explosive increase in payroll and compensation. Today, Jim Himes is fortunate to be one of more than 22,000 federal employees earning more than $170,000. The head count in this part of the federal payroll is up over 90 percent since Himes took office. As many as 16,500 new IRS agents will be needed just to collect and audit the new taxes mandated by the recently passed health-care law. Each of these new IRS agents should be grateful to congressmen such as Jim Himes for their jobs.
LOSERS: The taxpayers who may someday soon be on the other side of these audits aren't faring as well. Once we include the cost of the recent health-care law, the growth of government is outstripping the growth of our economy at such a pace that taxes will have to skyrocket in order to pay for it. Specifically, we can calculate the necessary rates that would be required to keep pace with the trajectory of new spending: the 10 percent bracket would become 23 percent, 25 percent would become 57 percent and the top marginal tax rate would become 90 percent.
A 90 percent tax bracket? What can we do (besides looking for jobs from the IRS)? History shows that it is very difficult to do much about the size and expense of entitlement spending once it is in force. However, congress delayed enactment of much of the health-care law for a few years in order to hide from us is full cost. It is during this time that we will have a chance to repeal this unaffordable spending, send 16,500 new IRS agents packing, and to restore our country's balance. The repeal process can start in November -- on Nov. 2, we can repeal Jim Himes.
Chris DeMuth Jr.