It’s obvious to me all the Bush tax cuts need to expire if we’re going to get a handle on our deficit. When they were put in place, the country was operating with a tax surplus. There was a sunset on the cuts for a reason; they were unsustainable!
It won’t be a tax increase; it will be an end to a temporary policy. How the Democrats let the Republicans get control of this message, I’ll never understand. I’m really disappointed in them.
There seems to be some misunderstanding of how much letting the cuts expire will affect the middle class.
Here’s the break down based on 2011 income. This is according to the Joint Committee on Taxation. (As you can see, if you were to pay an extra $100.00 a week, your income would be between $200,000 and $500,000--- I think you could afford it.)
Income: Less than $10,000
Number of filers: 28,681,000
Average increase: $70
-
Income: $10,000 to $20,000
Number of filers: 24,383,000
Average increase: $410
-
Income: $20,000 to $30,000
Number of filers: 18,523,000
Average increase: $756
-
Income: $30,000 to $40,000
Number of filers: 15,679,000
Average increase: $893
-
Income: $40,000 to $50,000
Number of filers: 13,001,000
Average increase: $923
-
Income: $50,000 to $75,000
Number of filers: 23,972,000
Average increase: $1,126
-
Income: $75,000 to $100,000
Number of filers: 15,245,000
Average increase: $1,837
-
Income: $100,000 to $200,000
Number of filers: 16,885,000
Average increase: $3,672
-
Income: $200,000 to $500,000
Number of filers: 3,757,000
Average increase: $7,187
-
Income: $500,000 to $1 million
Number of filers: 608,000
Average increase: $18,092
-
Income: $1 million and over
Number of filers: 315,000
Average increase: $101,587
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Bush’s cuts were responsible for 25% of our deficit. If we let them expire for only the rich, we’ll only generate 700 billion dollars, if they all expire, it would mean 3.7 trillion dollars.
This is all a distraction, of course. The deficit isn’t why our economy is in shambles. It’s high unemployment. No one will pay taxes if they don’t generate an income.
Banks have to lend to small businesses!!! They’re making plenty of money trading in foreign currency, so they don’t have to. (I can’t wait to find out what WikiLeaks dug up on the banks). I have mixed feelings about WikiLeaks that I’ll post about next week. --- I digress---
For now, short term deficit spending is a necessity.
It’s been proven that Bush’s tax cuts and the tax cuts that made up a third of the stimulus (Obama’s compromise with the Republicans that only diluted the effect of the stimulus), do not stimulate our economy.
Right now extending unemployment would be much more bang for the buck.
Republicans are convinced that extended benefits will only motivate the unemployed to stay that way. It doesn’t matter that there are 5 people for every job posted.