No. of Recommendations: 6
I'm pretty much in concurrence with Knighted on this one.

I am not surprised by 70% of the population saying that it's fine to raise the taxes on a 5% block that is outside of their domain (in fact, I'm surprised that it is not 95%, so I guess there may still be some hope that at least a few understand the arguments).

Yes, there is a very small handful of hedge fund guys and their ilk (say .01% or less of the population) who abuse the system and laws can address this specific issue (such as the AMT attempted to in the 1970's). On the other hand, the rest of the argument about taxing the balance of the 5% at the top clearly is bogus as this represents only 25% of the tax differential caused by the Bush tax cuts. The rest (the vast majority of 75% of them) comes from the cuts to the middle class.

The rhetoric made by a political figure that "passing an extension of the tax cuts on the middle class immediately will go a long way towards solving the fiscal cliff problem", does not even make sense (how can collecting less money go a long way towards solving a deficit problem). The very fact that statements like this go unchallenged and are accepted as gospel shows how ridiculous the discussions have become.

The fear of causing a recession by making reasonable decisions means that unreasonable decisions will be made.

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