Taxes

Tax policy is complicated. If the actual policy weren't complicated enough, understanding tax policy becomes almost impossible because of unsupported assertions and fear mongering.

Yesterday economist Robert Reich posted an article attempting to cut through the often complicated rhetoric and describe the proposal that is actually on the table.

By the way, the Congressional Budget Office has a new study out on income and taxes. The study shows that in 2008-2009 average federal taxes paid for all households reached the lowest level in thirty years. As for income distribution, the top 20% of the population received more than half of total before tax income. The bottom 20% received five percent of total before tax income. Probably not good for aggregate demand.