Infographic of the Day: Will the Coming Tax Changes Hit Your Wallet?

With Bush-era tax breaks set to expire at the end of the year, Congress is gearing up for a knock-down-drag-out fight over whether to extend all of them, some of them, or none at all (and just in time for mid-term elections!). The Washington Post has a fun–albeit visually misleading–interactive infographic on how the options will affect your wallet. (More on the misleading bit below.)

The question is: Are we willing to put the country in deeper debt, to keep our taxes as they are now? The Post’s infographic shows three scenarios:

Letting all cuts expire
That would mean that our government incurs no extra debts. But it also means that most Americas will pay a bit more in taxes:


With Bush-era tax breaks set to expire at the end of the year, Congress is gearing up for a knock-down-drag-out fight over whether to extend all of them, some of them, or none at all (and just in time for mid-term elections!). The Washington Post has a fun–albeit visually misleading–interactive infographic on how the options will affect your wallet. (More on the misleading bit below.)

The question is: Are we willing to put the country in deeper debt, to keep our taxes as they are now? The Post‘s infographic shows three scenarios:

Letting all cuts expire
That would mean that our government incurs no extra debts. But it also means that most Americas will pay a bit more in taxes:

Extending all the cuts
This is the favored plan of most Republicans. It would cost the government $3.7 trillion over ten years in forgone revenues.

Letting cuts sunset only for those earning more than $250,000 a year
This is what Obama and many Democratic leaders are agitating for–here, the richest Americans will shell out about $310,000 more a year (which comes to about 1.7% of their income). Those in the middle class won’t pay more. The government still loses money, though — about $3 trillion over the decade. Leer más “Infographic of the Day: Will the Coming Tax Changes Hit Your Wallet?”

Can Cost-Based Innovation Help Solve Our Debt Crisis?

Each of us are painfully aware of the new economic reality in which we find ourselves: national, state, and local government debt is skyrocketing. Simply put, it costs a lot more to provide and maintain government services than is taken in through taxes and other sources of revenue and thus we are forced to borrow to cover the difference. Every commentator on this subject offers essentially only three near-term solutions to the problem: raise taxes (there’s also a good argument for lowering taxes), cut services and programs, and reduce the civil service payroll. And while all of these have historically played an important role in some form of debt remediation, I’m struck by the absence of the role of innovation in this national discourse. I’m not talking about entrepreneurial innovation which of course is a considerable generator of income and taxes; I’m talking specifically about cost-based innovation.


by Jonathan Reichental in Cost Improvement, Innovation, Society

Each of us are painfully aware of the new economic reality in which we find ourselves: national, state, and local government debt is skyrocketing. Simply put, it costs a lot more to provide and maintain government services than is taken in through taxes and other sources of revenue and thus we are forced to borrow to cover the difference. Every commentator on this subject offers essentially only three near-term solutions to the problem: raise taxes (there’s also a good argument for lowering taxes), cut services and programs, and reduce the civil service payroll.  And while all of these have historically played an important role in some form of debt remediation, I’m struck by the absence of the role of innovation in this national discourse. I’m not talking about entrepreneurial innovation which of course is a considerable generator of income and taxes; I’m talking specifically about cost-based innovation. Leer más “Can Cost-Based Innovation Help Solve Our Debt Crisis?”