The debate in Washington has been focused for months on income
tax rates. But the way politicians and media frame the issue of
the Bush tax rates is at odds with one of the fundamental
principles of the income tax system, and it unnecessarily warps
public understanding of what’s on the table. Facing record
deficits and growing debt, President Barack Obama has proposed
letting the Bush tax cuts, enacted as a temporary measure in
2001, expire for income over $250,000, raising that rate from 35
percent to 39.6 percent, though he has indicated flexibility on
the rate if new revenue can be found elsewhere. The problem is
in the way this decision is too often formulated. The shorthand
used by politicians of both parties as well as in the press,
says that “President Obama wants to raise taxes on families
earning more than $250,000.” Put that way, the idea is
understandably disturbing to people who earn anywhere near
$250,000. It offends their sense of fairness, raising complaints
of class warfare. “But we’re not ric