Who (Else) Didn’t Pay Taxes Last Year

The Article: Buffett Rule Rorschach: 7,000 Millionaires Paid No Income Taxes in 2011 by Derek Thompson in The Atlantic.

The Text: The White House’s new campaign banner/economic principle is the so-called “Buffett Rule,” which holds that no millionaire should pay a lower effective tax rate than a typical middle class family. Sound sensible, yes? Of course it does. The tax code is progressive and purposefully so. Marginal income tax rates increase with income. The more you make, the greater share of income you pay. Disagreeing with this general principle puts you to the right of a typical Republican.

But the Buffett Rule wasn’t meant to hold up to strict constructionism. “You cannot build a tax code on the principle that no millionaire, ever, should ever have an effective tax rate lower than their secretary,” my Atlantic colleague Megan McArdle wrote this morning. Well, you could, she allows, but you’d have to give the IRS extralegal responsibilities to seize rich people’s income beyond what they owe.

To understand why, consider the 76 million people who don’t legally owe individual income taxes in 2011 (please, please note: does not include payroll, excise, state and local taxes). The vast majority of this group was poor. They didn’t owe individual income taxes because they didn’t owe a lot of money to start, and various exemptions, like the earned income tax credit, wiped out the rest.

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What Americans Mind

No, us “moochers” don’t actually mind the wealth — we mind that it goes to causes that mind our existence as signers of a social contract based society.

More Young Americans With Health Insurance? Thanks, OBAMA!

The Article: Obamacare Results in Largest Drop in Young Adult Uninsured Rate… EVER. in The People’s View.

The Text: This is what Mitt Romney and the Republicans will repeal: The share of young adults without health insurance fell by one-sixth in 2011 from the previous year, the largest annual decline for any age group since the Centers for Disease Control and Prevention began collecting the data in 1997, according to a new report released on Monday.

I wonder what could have resulted in this. Oh, right, the socialist Kenyan usurper plot to institute death panels by guaranteeing access to health care for more people, aka Obamacare.

The study’s author, Matthew Broaddus, a research analyst at the liberal Center on Budget and Policy Priorities, said the increased coverage for young people was almost certainly due to a provision in the Obama administration’s Affordable Care Act that allows children to stay on their parents’ insurance policies until their 26th birthday.

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The Obama Troll

But with the looming fiscal cliff, maybe Romney should be glad Obama’s not calling him Mr. President.

The Party Of Work

The Article: The Party of Work by David Brooks in The New York Times.

The Text: The American colonies were first settled by Protestant dissenters. These were people who refused to submit to the established religious authorities. They sought personal relationships with God. They moved to the frontier when life got too confining. They created an American creed, built, as the sociologist Seymour Martin Lipset put it, around liberty, individualism, equal opportunity, populism and laissez-faire.

This creed shaped America and evolved with the decades. Starting in the mid-20th century, there was a Southern and Western version of it, formed by ranching Republicans like Barry Goldwater, Ronald Reagan and George W. Bush. Their version drew on the traditional tenets: ordinary people are capable of greatness; individuals have the power to shape their destinies; they should be given maximum freedom to do so.

This is not an Ayn Randian, radically individualistic belief system. Republicans in this mold place tremendous importance on churches, charities and families — on the sort of pastoral work Mitt Romney does and the sort of community groups Representative Paul Ryan celebrated in a speech at Cleveland State University last month.

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