Numbers Behind the Tax Cut Compromise

The Sunday Globe ran an article in the Money & Careers section about how the Obama compromise on extending the Bush era tax cuts will affect families of different income levels.

Check out the full article: http://www.boston.com/business/taxes/gallery/taxdealbythenumbers/

Here's some telling data:
Population Segment by Income     Savings (as % of Income)
Bottom 20%                                   $3,342 (10%)
Middle                                            $3,246 (4.3%)
Top 20%                                        $6,538 (4.5%)
Top 1%                                          $6,788 (1.5%)
Top 0.1%                                       $92,658 (4.5%)

As you can see, these tax cuts aren't exactly progressive with the super rich getting a better deal than the middle or upper middle class.  This comes at a time when income inequality in the US, which has been growing for the past 40+ years and has especially accelerated since the mid-1980s, is reaching an all time high.  There's a lot of debate about the role the income disparity plays in the US, but in general countries that have a better education system than the US, or rate higher on health indicators, or have lower crime rates also have a more equal distribution of wealth and income.  The US' inequality is about the highest in the developed world.

The argument for extending the tax cuts is that raising taxes right now would halt any economic growth that we're seeing.  That is essentially true, economists agree that this compromise will help spur economic growth.  However, most of that growth and job creation will come from the extension of unemployment benefits and the reduction in the payroll tax, not the continued income tax cuts.  Additionally, there is a vocal group of Americans and legislators who feel that reducing the impending deficit should be our #1 priority.  Extending tax cuts doesn't do this.  Letting the tax cuts expire on earnings over $250,000, $500,000 or even $1 million would have been a reasonable way to let most of Americans continue to have money to spend and put back into the economy while using excess discretionary earnings to bring the budget into balance.  There need to be additional tax brackets above $250,000 to account for the incredible income growth and disparity that has occurred at the top end of the income scale.  There is always a lot of populist anger when people see sports stars or Wall Street bankers walking away with million and billion dollar salaries and bonuses.  It would be nice to see some anger directed towards the broken system that protects them and allows our economic growth to walk away without benefiting the vast majority of Americans for whom that growth has been so elusive.

[Additional source - http://en.wikipedia.org/wiki/Income_inequality_in_the_United_States]

Upstairs on the Square

Upstairs on the Square - 91 Winthrop Street, Cambridge (Harvard)

This fall (this post is really old), thanks to Gilt City and my friend Laura, I had an opportunity to try out the 5 course tasting menu with wine at Upstairs on the Square, a pretty swanky place in Harvard Square, with Ann and Laura's friend Dan.  I didn't really know what to expect coming in, other than the excessive amounts of pink and stripes used in the dining room decor were not to my liking.

Upon arrival, my concerns about the decor were found to be mostly true, though not as bad as feared.  However, things became immediately better when we were presented with the menu.

Let's just say it was a very enjoyable meal.  The wine pairings were all good, though I'd say the wine that stood out the most for me was the Sauvignon Blanc.  It was probably the best one I've ever had, though that could have had something to do with the fact that our server told us it was a limited edition run that this guy makes only in certain years.

The Heirloom Salad was good, especially the goat cheese, although sometimes the tomatoes were a bit overpowering for me.  Same for the Spaghetti au Caviar, although it was good just to have a small portion because it was kind of creamy and that would have become too much if we had tried to eat a whole entree of it.  The Salmon was probably the consensus top entree pick out of the group.  Here is a dish we wish they didn't have a small portion for.  The Salmon itself was great and then the root vegetables and apples were a perfect compliment with a kick from the mustard and horseradish.  It was especially nice for fall.  The Chicken was also great, although I would say the portion was even more noticeably undersized.  I was mostly surprised at how much I enjoyed the spaetzle.  At this point in the evening, we were all feeling pretty good from the wine and had been truly enjoying the assortment of fine foods presented to us.  I do not think we were prepared for what happened next.  The Churros y Chocolat is probably the best dessert I have ever had.  Ever.  They were perfectly fried and sugary and cinnamon-y and you could dip them in molten dark chocolate.  Pairing it with cinnamon ice cream just completed the perfection!  Needless to say, we all left on a happy note.


Doing the tasting menu at Upstairs on the Square was certainly an enjoyable experience.  The food was very well conceived and prepared, leading to the results described above.  It was different enough to be exciting, but familiar enough to be enjoyed.  Our server was very friendly and we had a good time, though there were a couple of overly long delays between courses.  My biggest knocks on the place are the prices and the atmosphere.  It's certainly worth the extra cost for a special occasion based on the food, but the dining room was a little off and also had too much of a stuffy, formal feel for me to make it a top choice.