Grassley Incentive Killer [Republicans raise marginal tax rates !!]

Wall Street Journal ^ | june 9, 2003 | Editorial

[The Raven]

Senate Republicans are chagrined for giving in last week to Democratic demands to extend the child-care tax credit to people who don't pay income taxes. They should be embarrassed, but it's even worse than that: They also voted to raise marginal tax rates on more of their own voters.

[The Raven]

Amazing

[Rodney King]

The lesson for Republicans is that this is what comes from dabbling with "tax credits" and other non-marginal tax policy. They are essentially handouts that amount to acts of political favoritism, but they don't improve economic incentives. If Republicans are going to agree to tax credits at all, they should at least make them universal so that there is no phase-out and thus no marginal rate leap.

That is the real lesson.

[NoControllingLegalAuthority]

Which major party raises taxes and government spending?

Both of them.

[The Wizard]

it will all be changed shortly after the election when all phaseouts are made permanent....doncha worry, this is a hit piece.

[freedomcrusader]

I don't understand how raising the income cap for a tax credit translates into a higher marginal tax rate.

Anyway, the House hasn't passed this yet, and the Prez hasn't signed it.

[gaspar]

The House won't pass it. But that doesn't gainsay the fact that Grassley is the consummate stooge, and the poster boy for the Peter Principle.

[freekitty]

Our government cares so much for us.(sarcasm)

[habs4ever]

There's a moral in all this, being NEVER let a populist conservative from a farm belt state write tax policy.Grassley is a boob.