Alan Beattie
Financial Times
September 12, 2020

Republican leader in the House of Representatives agrees to work with Democrats to tax the “rich.” Photo: Talk Radio News Service.

Editor’s note: A person who earns $250,000 is not rich, as John Boehner and the Democrats would have us believe. “In truth, those with $250,000 gross incomes have more in common with those at the lower end of the income distribution than with the rich,” writes Paul Craig Roberts. “A $250,000 income is ten times greater than a $25,000 income, not hundreds or thousands of times greater. On an after-tax basis, the difference shrinks to about 6 times.” Roberts notes that in medieval Europe, when tax rates reached beyond 30%, serfs rebelled and killed their masters. That is not about to happen in the United States, circa 2010. Instead, righteous indignation will be turned against the “rich” who are not in fact rich and the anger will be deflected from the real culprits — the mega-rich like Bill Gates and Warrern Buffet and the bankers.

A leading Republican has offered a glimmer of hope for a potential compromise in the fiercely partisan US debate over extending middle class tax cuts.

The US Congress returns from recess this week amid discussions about boosting the economy by extending Bush administration tax cuts that are due to expire.

The White House has argued for only extending cuts for households with an income of less than $250,000, while Republicans want all reductions to be kept.

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On Sunday John Boehner, Republican leader in the House of Representatives, suggested he might vote for only the tax cuts on middle-income Americans. He told CBS television that while he favoured extending all the tax cuts that dated from the era of George W. Bush, he would vote for a partial extension if necessary.

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