THE BLOG
12/24/2010 08:09 am ET Updated May 25, 2011

Congress's Xmas Present to Middle Class: Future Tax Hikes

The holiday season has seen Congress gift-wrap tax cut extensions for millionaires under the guise of a "compromise between the parties." Support for the millionaire's tax cut extension among the middle and working class is puzzling since a taxcut for the wealthy today amounts to a future tax increase for the middle class.

So why would someone making $50 K a year want to see those earning over $250 K pay less in taxes? Here's a few possibilities:
(1) You believe that a slight dip in the marginal tax rate for the top 2% will stimulate the economy. If so, you're being handed a lump of coal. No serious economist argues that lowering the marginal tax rate a few percent for the wealthiest will stimulate the economy. No successful entrepreneur says, "I refuse to try earning more next year if my tax cuts aren't extended."

(2) You honestly believe that the only way to cure large government is to starve the beast by lowering government revenues. If that's the case, then please put your wallet where your mouth is by not accepting Medicare, Medicaid, unemployment benefits, rental subsidies or any other version of socialized support. Of course, you'll also need to make sure your state rejects all the pork-barrelling that Congressmen are so eagerly trying to snatch for your state. You aren't going to do that because you like receiving government support, you just don't like paying for it.

(3) You fantasize that someday soon you'll be rich and, when you become wealthy, you want to protect your future wealth. This fantasy is tightly tied to the American myth of social mobility. A few examples of people who rose from humble beginnings to achieve wealth and fame such as Nixon, Reagan and Obama cloud the truth that the US has one of the lowest levels of social mobility and highest levels of wealth inequality of any developed country...and the balance of power and wealth continues to shift to America's elites.

For those who support this millionaire tax cut, ask yourself, "Do I support this because I know that this will help me save money immediately." If so, then at least you're honest. If you're middle class and believe that this will help the country's economy or help you when your salary jumps you to the millionaire level then I say wake up to America's reality and stop handing bullets to those attacking your children's future.