TAXES ARE HEADED UP

With the coming expiration of the Bush tax cuts, federal income taxes are about to increase sharply, and automatically [for 100% of those who pay taxes]. Under conventional "current law" accounting, when a tax cut expires, marginal tax rates are forced higher, but budget officials do not see this as a tax increase at all.

• If Congress were to stabilize federal revenue at its 30-year average of 18.4 percent of GDP, taxpayers would keep an extra $2.6 trillion over the next 10 years.
• In absolute terms, $2.6 trillion is slightly more than all the individual income taxes the federal government will collect in fiscal years 2008 and 2009 combined.
• That amounts to roughly $22,000 per household -- enough to buy a new car or to make a meaningful down payment on a home.
• Even by government standards, $2.6 trillion is a large amount of money.

Our elected officials may ultimately decide it is necessary to allow federal revenue to rise above its historical average, and voters may also decide to deny them re-election, but taxpayers deserve the truth.

Instead, we are subjected to political word games designed to hide the fact that our tax bills are slated to increase significantly unless Congress acts, say Carter and Miller.

[the key here is in denying them re-election before the tax cuts expire. We'll be voting on a lot next week]

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