We must face reality and increase taxes
Being the record-keeping junkie that I am, and with all the political dialogue regarding tax levels, I pulled out my 1998 and 2010 federal tax schedules and compared required tax payments using the "married-filing-jointly" figures.
For a taxable income of $25,000, the 1998 federal tax was $3,754, while the 2010 federal tax was $2,916 - a tax reduction of $838. For an income of $50,000, the 1998 tax was $8,502; while the 2010 tax was $6,666 - a tax reduction of $1,836. For an income of $100,000, the 1998 tax was $22,488, while the 2010 tax was $17,356 - a reduction of $5,132. For an income of $300,000, the 1998 tax was $92,404, while the 2010 tax was $77,781 - a tax reduction of $14,623.
Is it any wonder that our debt has increased so dramatically to more than $15 trillion since the Bush tax cuts? I firmly believe that we need to reduce federal spending, but anyone who thinks we do not need to raise taxes at least back to the Clinton levels has his head where the sun doesn't shine. It is not pleasant to face the need to not only reduce our debt but to keep our spending in line with our income. But face it we must. When?
David F. Baker