The 45% tax rate and $205B in giveaways

Sometimes, it takes a WSJ editorial to walk you through something and the indie press nosing around in order to understand how good or bad legislation is.

This morning's editorial states that the highest tax rate on those making $450,000 a year will be in the 45 percent range, higher than most people think. That's because of the ObamaCare surcharge kicking in as well as other things. Also, 80 percent of deductions and exemptions are ending for millionaires, according to the editorial, due to the phaseout of Personal Exemption Phaseout and the Limitation on Itemized Deductions (PEP/PEASE). 

So while not truly completely "making millionaires and billionaires pay a little more," there is a bit of good news here about making them pay a little more, if that is what your focus is. The fact remains that the deficit and debt are such massive problems, everyone is going to need to pay more while cutting all federal spending drastically. 

The problem though then becomes that, like I wrote before, the cuts haven't materialized, and the giveaways added to the deal are unfathomable and unconscionable 

Matt Stoller over at informationclearinghouse.com has an overview of some of the billions in giveaways that have been extended by the fiscal cliff agreement. These are some of the same things that Democrats have historically wanted to end but would blame the GOP for standing in the way. Corporate welfare, you know. These are some of the tax changes we all have to support in order to truly fix the revenue problems. It's truly "paying your fair share." Why should you or I pay more while Disney and Goldman Sachs get away with paying less? Now, again, both parties are truly to blame, when you look at the fine print.