Next time Republicans promise you tax relief

You better make sure you are a millionaire first.

The LA Times has a good article on what happens when you flatten out the federal tax code. Many Republicans like to promote a "flat tax" as better for everyone. Turns out, it's better for millionaires and that's about it. The LA Times reports:

But as millions of Americans face the deadline for filing their federal tax returns, they are operating in something very close to the world Forbes and other flat-tax visionaries proposed. Without any fanfare or philosophical debate, millionaires and middle-class Americans now pay taxes at almost the same rates.

And has this has been a big bonus for the middle-class right?

Has leveling out federal income tax rates produced a cornucopia of financial benefits? The answer is probably yes — if you're a millionaire. And probably no — if you're almost anyone else. Flattened, and thus lower, tax rates have contributed to huge increases in the wealth of the wealthy, but so far most people haven't seen significant economic improvement.

But surely the fiscal policies of the Republicans have produced big tax cuts and higher incomes for most people in this country so we are all moving toward those top income brackets right?

Though most pay at least somewhat less in taxes than they did a few years ago, the Federal Reserve Board, in its latest three-year examination of family finances, found that average family income fell by 2% between 2001 and 2004 after adjusting for inflation. In the previous three-year period, average family income grew by 17%.

Thanks to more credit card debt and borrowing against their homes, the 25% of Americans at the bottom of the wealth scale had negative net worth in 2004. On average, these families owed $1,400 more than their possessions were worth.

How scary is that? If the bottom 25% of the wealth scale for America sold every single thing they own, they wouldn't have enough to pay for their debts.

In summary, when Rep. Mark Green tells you he voted for large tax cuts for you when he was in Congress, check your last income tax return and if your income didn't add up to at least a million, tell him he is at the wrong house asking for a vote.

You can find the whole article here.