A Dishonest Disincentive

One problem with the unearned income Medicare contribution tax is the name Congress chose for it, which is a triple misnomer. The income that will be subject to the tax isn’t unearned — it is earned by savers who receive market rewards for delaying consumption and providing funds to finance business investment.

Alan D. Viard, writing for Bloomberg, shines a light on another of Washington’s attempts to deceive the voters as it picks their pockets. What is called a “contribution” is, of course, anything but. Just as when the president speaks of “asking” the wealthy to “pay a little bit more,” and what he is describing is not a request. But we all know that. It might be intellectually bracing, however, for the people who write these laws to stand up and call them what they are. Are they not proud of their work? Say it loud and say it proud, “We just raised taxes and we feel good about that. Just as soon as we finish this victory lap, we’re going to go back to work and raise them some more.”