Boehner pitches millionaire tax hike
Source: Politico
Boehner pitches millionaire tax hike
By JOHN BRESNAHAN, JAKE SHERMAN and CARRIE BUDOFF BROWN | 12/15/12 7:32 PM EST Updated: 12/15/12 7:35 PM EST
Speaker John Boehner has proposed allowing tax rates to rise for the wealthiest Americans if President Barack Obama agrees to major entitlement cuts, according to several sources close to the talks.
It is the first time Boehner has offered any boost in marginal tax rates for any income group, and it would represent a major concession for the Ohio Republican. Boehner suggested hiking the Bush-era tax rates for top wage earners, including those with annual incomes of $1 million or more annually, beginning on Jan. 1, two sources said.
Obama and Boehner spoke by phone Friday after a lengthy face-to-face session at the White House on Thursday. The quickening pace of private conversations between the two key players in the fiscal cliff standoff shows progress is being made in the negotiations, although they are not close to a deal yet, sources said.
Boehner also wants to use a new method of calculating benefits for entitlements programs known as “chained CPI,” which would slow the growth of Medicare and other federal health programs and save hundreds of billions over the next decade.
Read more: http://www.politico.com/story/2012/12/boehner-pitches-millionaire-tax-hike-85128.html?hp=bn
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First, the Consumer Price Index doesn’t account perfectly for changes in product quality. For example, an average computer today might cost about the same as an an average computer cost last year, but today’s computer is better than last year’s computer in a number of ways that the CPI doesn’t account for. Similarly, the invention of new goods poses a challenge to the Consumer Price Index, since incorporating such goods into the basket while maintaining comparability over time can get quite tricky.
Second, the Consumer Price Index assumes that a household purchases the same basket of goods regardless of how the prices of those goods changes. In reality, however, households are probably smarter than this, and they likely substitute away from items that get disproportionately expensive to goods that got comparatively less expensive.
The crazy GOP is using a material standard applied to people who require MINIMUM things to survive which EFFECT peoples lives. I knew these people were crazy and that they NEVER think about what someone tells them to PROMOTE.
