Soak The Poor - Enrich The Rich

Who benefits - who pays?

North Carolina's Republican legislature thinks the poor aren't poor enough and the rich aren't rich enough.

If you aren't in the top 10%, Republicans don't know anyone like you and certainly don't care about anyone like you. And it isn't just taxes.

But their tax plan is bad enough.

Economist Jared Bernstein spent today in North Carolina trying to talk sense about taxes and expenditures.

Lowering taxes on the rich and raising taxes on the poor - which is what a shift from income taxes to sales taxes will do, is just a very bad idea. As bad an idea as the sequester.

But it helps the rich, to whom Republicans pander.

Here is a graph of the share of income spent on taxes by income group:



Remember the old song about the rich getting richer and the poor getting poorer?

Here's Bernstein's summary of the problem. Increasing sales taxes will take a proportionately bigger bite out of the lowest three quintiles than of the top 20%. Decreasing income tax will have almost no benefit for the bottom 20% but the top 1% will rake in the dough.