Krugman Views Tax Cuts as an “Expensive Proposition” But not “Stimulus” Legislation

By Kevin Mooney
 
Whatever voters may think of former President George W. Bush these days, they think very highly of their disposable income, cost of living and bank accounts. That’s why it’s smart politically for Republicans to call for an extension of the Bush tax cuts set to expire at the end of this year.

But it’s also makes good public policy, contrary to what New York Times columnist Paul Krugman has argued. With the U.S. still mired in recession, now would be a particularly bad time to further burden Americans with tax rate increases. Here’s what the expiration will mean for working families and average citizens.

• 35 percent bracket which will increase to 39.6 percent
• 33 percent bracket which will increase to 36 percent
• 28 percent bracket which will increase to 31 percent
• 25 percent bracket which will increase to 28 percent
• 10 percent and 15 percent will condense to 15 percent
• The capital gains tax will increase from 15 percent to 20 percent
• The tax on dividends will increase from 15 percent to 39.6 percent

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