The Return of the Tax Fairy
"We have already seen the return of the Tax Fairy, the absurd belief, depressingly widespread in Republican circles, that cutting taxes increases revenue. Even Greg Mankiw, chair of George W. Bush’s Council of Economic Advisers, called those who believe this fiction “charlatans and cranks.” But it has become almost doctrine within the GOP. "
"Back when the cuts were enacted, the administration and its allies in Congress spent a lot of time talking about how there were cuts for everyone (or at least everyone who pays income taxes, a crucial distinction they weren’t at pains to make). They were less comfortable talking about the fact that people of modest means got a few hundred dollars, while millionaires were showered with tens or even hundreds of thousands. It wasn’t just the cuts in the top rates—the administration pushed for a series of cuts, on stock dividends and inheritances, among other things, targeted squarely at the wealthy.
When the tax cuts were passed, the prevailing assumption was that when the 10 years expired, Congress would make them permanent, no matter which party was in charge or who was president. After all, who wants to vote for a tax increase? But now, the Obama administration has put Republicans in a difficult spot. President Barack Obama’s proposal is to make the cuts permanent—but only for Americans making less than $250,000 a year, in keeping with a promise he made during the 2008 campaign. This forces Republicans to explicitly argue against a tax cut for the wealthy—and only for the wealthy.
And whatever else Americans think about taxes, they emphatically believe the wealthy get off easy; polls consistently show around 60 percent saying the rich don’t pay their fair share. If you’re a conservative, how do you deal with that? The justifications shift to whatever focus groups are saying is most effective at a given moment, but the goal is always the same: Make sure that the wealthy pay as little as possible. "
The Return of the Tax Fairy