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Unformatted text preview: ’re lower today than they’ve been in 60 years. And they’re lower than they are in most developed countries. We do have a debt problem coming down the road. That debt problem is the result of an aging population, rising health care costs, and, yes, revenue levels that are too low. 6|Page Taxes Bad DA Affirmative BDL Tax Increases Good for the Economy – Budget Deficits [_____] Taxes are necessary for deficit reduction Timothy Noah, Senior Editor at the New Republic, 2012 (The New Republic: Raise Taxes On The Middle Class, July 16, 2012 http://www.npr.org/2012/07/16/156835192/the-new-republic-raise-taxes-on-the-middle-class) Eventually, though, income tax rates need to return across the board to the Clinton-era levels. "I don't want to raise taxes on the middle class," Obama says. But if he doesn't, he can forget about achieving meaningful deficit reduction. Taxes need to rise for the rich — and I'd argue they should rise a lot higher than to a top marginal rate of 39.6 percent. (I'd create three additional brackets for incomes above $1 million, $10 million, and $20 million, and have the marginal tax rate rise gradually from 39.6 percent to 70 percent, which is what it was when Ronald Reagan came into office.) But once it's established that the rich will pay their fair share, taxes on the middle class ought to rise, too. It would be political suicide for Obama to say any of this right now, because voters think taxes are already too high. But federal tax rates are not too high at all; they're at historic lows. A new Congressional Budget Office report, which examines the impact of all federal taxes (including the progressive income tax and the everrising regressive payroll tax) says the average effective tax rate for all households (i.e., the percentage of total income, including federal benefits, that a househol d pays in all federal taxes) was 17.4 percent as of 2009, the last year for which data are available. That's the lowest effective tax rate recorded since 1979, and if the IRS had effective tax rate data going further back it would be the lowest since a lot earlier than that. (Effective taxes were comparatively high in 1979.) Since 1979, the average effective tax rate has fallen for all five income quintiles (i.e., the lowest, second-lowest, middle, second-highest, and highest 20 percent). For the middle quintile, which represents the dead center of the middle class, average effective tax rates dropped from 18.9 percent in 1979 to 11.1 percent in 2009. 7|Page Taxes Bad DA Affirmative BDL Tax Increases Good for the Economy – History Proves [_____] Tax increase would benefit the economy – Clinton era Robert Reich, Chancellor's Professor of Public Policy at the University of California at Berkeley, was Secretary of Labor in the Clinton administration, 2012 (The Truth About Obama's Tax Proposal (and the Lies the Regressives Are Telling About It) , 7/10, http://www.huffingtonpost.com/robert-reich/obama-tax-proposal_b_1661908.html) A third lie is Obama's proposal will "increase uncertainly and further retard investment and job crea...
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