Democrats' Unfair Income Tax Cuts Complaints – Its Logical Conclusion

Democrats constantly complain that the Bush tax cuts unfairly favored the rich because they received the largest dollar tax cuts. If you follow their argument to its logical conclusion, then it becomes apparent that the only fair tax cut that Democrats could support is a zero tax cut. Allow me to explain by example.

Taxpayers 1, 2, 3, and 4 (respectively rich, middle class, lower middle class, and poor incomes) currently pay $100,000, $10,000, $1,000, and zero in annual income taxes. An across the board tax cut proposal for 10% is introduced into Congress. That means the four taxpayers would see their taxes cut 10% each for $10,000, $1,000, $100, and Zero respectively in income taxes saved. The Democratic Senator says wait, we can't give the rich taxpayer #1 a $10,000 tax cut when the middle class taxpayer #2, only gets $1,000. Nor can we afford to give all taxpayers a $10,000 tax cut or we will have huge deficits we cannot afford. So they agree to 'compromise' and limit the dollar tax cut maximum to $1,000 for everyone. So now, Taxpayer 1 only receives a 1% tax cut ($1,000) which for him is hardly anything at all.

Then the Democratic Senator from California speaks up and says, hey we can't give the middle class Taxpayer #2 $1,000 or ten times the dollar amount given to the lower middle class Taxpayer # 3. So a compromise is reached to make $100 the maximum tax cut for everyone. Now, Taxpayer #1 receives a $100 tax cut or just one tenth of 1% in tax cuts. Taxpayer # 2 also receives $100 in tax cuts or just a 1% tax cut. Taxpayer #3 receives the full 10% tax cut.

However, the Democratic Senator from Massachusetts chimes in and says this isn't right because Taxpayer #4, who paid no income taxes at all, isn't receiving a tax break. So the Democrats put their heads together and work out a compromise. A zero percent tax break yields the same tax percentage break to all (nothing) and the same dollar amounts to all (again nothing). All the Democrats agree and are happy. They finally came up with a 'fair' tax bill (that is no tax bill at all). But, are you as a taxpayer, happy?

Taken to its logical conclusion, the only tax cut that could satisfy Democrats quest for a fair tax cut to taxpayers is zero tax cuts. Any significant tax cut above zero will always produce different dollar amounts by income level and therefore by Democratic definition would be “unfair”.