Allowing Bush tax cuts for the "rich" to expire is a very bad idea. My reason is actually very simple because it will be a tax hike for the middle class. Tax laws in the US are very complex and just because your taxable income for 1 year is over $250,000 does not mean you are alway this highly paid. Here's a scenario.
I do not work the government. I work in the private sector and I do NOT have a pension. I live paycheck to paycheck since real wages have not gone up for the last decade and I have basically no means of retirement other than social security which is getting pushed back further and further. In my line of work there are no one being hired if they are over 50.
The only way for me to retire is by moving from company to company hoping one of these gigs will turn out to be successful and I get a wind fall via. stock options. Now if you know about stock options these once in a lifetime gain is considered ordinary income and would be over the $250,000 for the 1 time which means... it is subject to the millionaire tax. You might think oh this guy look at him, his income this year is $4 million and he must be rich nevermind that this is essentially my lump sum pension. Think $4 million is a lot? look at the typical government worker who retires at 50 with 90% of his final year's pay that goes on until he and his spouses die, this can easily top $4 million in aggregate and yet just because he isn't getting this via. a lump sum means he doesn't have to pay a millionaire tax while I would be subject to even though I am really not any better off. I think the "tax the rich" concept is flawed because it pits government workers against works in the private sector, and this is very sad.
A much better taxation would be not based on annual income but rather based on lifetime income, i.e. your total income since the day you started working is added up year over year and your tax is based on the total overall income... oh wait, they will never to this because government workers with a pension will scream and whine because finally they'd be asked to pay this millionaire tax even if they arent.... my point exactly.
do not raise taxes on the "rich" the concept is terribly flawed.