Raise everyone's taxes

In this 2-minute video, CNBC's, Maria Caruso Cabrera demonstrates the abysmal quality of mainstream business reporting:

First, Cabrera implies that Democrats are wrong in a wanting to raise tax-rates on the rich. Then, with no sense of irony, she suggests means testing for Medicare. She ought to know that means testing is as much a progressive tax as the Dems push to raise the marginal rates. The GOP want to tax the rich just as the Dems do...they just want to pretend they don't.

Payroll tax are taxes: Today's social-security system is very progressive. Richer folk are paid out more than the poor; but, proportionally the rich are paid out far less. We have Alan Greenspan to thank for this. Medicare is even worse. The rich pay in far more and get nothing extra -- not even a better walking-stick -- in return.

The Simpson-Bowles plan would shore up social security. In part, it would do so by raising payroll taxes on the rich, but only paying them a tiny bit more when they retire. 

Medicare tax hike for 2013: In 2013, a 3.8% Medicare surtax will hit people earning around $250K per year. At 3.8%, the increase is significant. In the recent "fiscal-cliff" farce, the GOP has been portrayed as fighting to stop taxes being raised on millionaires. Yet, even after hours of TV programming on the topic, few people know about the Medicare surtax.

Tax the middle-class: Economist Tyler Cowen has suggested that we should raise taxes for everyone. Taken in context, I agree with him. There has been too much focus on "the rich", when those taxes would only make a small dent in our deficit. It is the spending, stupid! However, politicians are scared to touch entitlements.

Focus on deficits: The GOP cling to a "no tax" mantra like cargo-cultists. As the CNBC video shows, they're fine with progressive taxes if they're called something else, like "means testing". Instead the GOP should focus on the deficit. They should insist on a plan that eliminates the annual budget deficit within 5 years, and has a surplus for the next 10, paying off a portion of the debt. That should be primary. They should not compromise on this. To get there, they should insist on spending cuts. They should only compromise on this if the Dems agree to raise taxes to cover spending, and only if the taxes are across the board: where all voters feel some pinch from the extra spending.

Someone else's money: If that sounds like a dream, the root cause is the American voter who wants to pursue his American values like iPods and iPad, ignoring the fact that we will eventually run out of other people's children. It does not take a rocket scientist to understand that the deficit will fall on our kids and someone else's kids. It does not take a saint to know this is immoral. Voters ought to have their taxes raised, thus bearing the burden of their desires.