On Sunday, Mitch McConnell’s proposed cutting the 25 percent income tax rate to 15 percent, which he described as a move to help the middle class. As usual with conservative tax proposals, this is true as long as you see “the middle class” as primarily composed of extremely wealthy people. Ben Furnas points to new analysis from the Tax Policy Center:
As economic stimulus, meanwhile, anything that — like McConnell’s proposal — would do nothing at all for folks earning less than $40,000 is a terrible idea. You need to direct tax relief at people who have a high propensity to spend a marginal dollar, even in a climate when there are some deflationary expectations. That means first poor people, second middle class people, and not at all the $2.8 million a year crowd that McConnell’s trying to help out.