Bloomberg: Middle class taxes to go up, whether you like it or not

The editorial board at Bloomberg writes today that whether the next president is Mitt Romney or Barack Obama, either way, taxes on the middle class will have to go up.

[T]he bipartisan Tax Policy Center noted recently that Romney’s plan for “revenue neutral” tax cuts would undercut the potential for economic growth because it would “increase the portion of Americans’ income that is subject to tax, and this would create incentives that would work in the other direction.” In other words: Romney’s plan will require a tax increase because it would open up a $360 billion hole beginning in 2015. ...

The deficit is not irreducible. The Simpson-Bowles report, for example, lays out a mix of tough spending cuts and significant tax changes that increase revenue while keeping progressivity in the U.S. tax code. Every serious deficit reduction plan calls for increased revenue along with spending cuts.

If they were being honest, both presidential candidates would likewise acknowledge that taxes must be raised. And there’s no way to make the arithmetic work without some revenue from the middle class. So vote for whomever you like this November. Either way, your taxes are going up.

[Bloomberg]