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To Tax the Wealthy or Not to Tax? Bush tax cuts need to expire as planned.

The hot debate in Congress at present is whether the Bush tax cuts for the wealthy will be extended past their planned expiration at the end of 2010.  President Obama hopes to extend the cuts only for couples with incomes under $250,000 (and individuals under $200K). 

The U.S. economy is in a horrible state at the moment. Republicans are arguing that we need to keep the millionaires happy by extending their tax cuts. A recent Moody's analysis  (see http://www.bloomberg.com/news/2010-09-13/rich-americans-save-money-from-tax-cuts-instead-of-spending-moody-s-says.html ) claims that the rich will not spend more to help the economy. Moody's analysts say the rich will save their money and that, in turn, will actually hurt the economy. However, from my layman's point of view, I can't see how increasing our deficit to spend more for these tax cuts will help the U.S. economy. I can remember lecture from a few economic classes I took in college that spoke of economic stimulation. We learned that government investments to our infrastructure can strengthen the economy and create jobs. But, that doesn't make me any type of expert. My common sense questions that monies could be better spent instead of providing the super wealthy a break. I can honestly say I have no personal bias against the super wealthy one way or the other. However, the disparity between the super rich and the average American has to count for something in the national debate.  Bottom line, in my opinion, end the tax cuts to the super wealthy as originally planned!

(Partisan politics are necessary in our government. However, it makes me wonder why there's been so much dissent with most of Obama's proposed legislation while he's been in office. The country needs to get back to "one nation, indivisible...." to expect any real improvement in our current economic situation).


Addendum:
Since I last posted this blog:
On December 7, 2010 President Obama announced a compromise with the GOP that would extend the Bush tax cuts past their end of the year deadline. Obama explained the negotiation was for the good of the country and would (among other things) prevent a tax hike and extend unemployment benefits for workers in the coming year. Today, December 16th, the U.S. Senate affirmed Obama's newly negotiated tax cut package. The Obama Administration is hoping the House Democrats will be on board and approve the legislation in the coming days. It's a matter of record that the scoffing by the Dems had begun long before the President announced his "compromise" with the GOP in his national press conference last week. I personally believe in compromise and we can see that Obama has been practicing that fine art since his first day in office. While I haven't changed my opinion on the Bush era tax cuts, I can see the other side of the argument more clearly. What are we to do when we're caught between the proverbial "rock and hard place?" - sometimes we must look at the big picture. This President, like the others before him, has an often impossible job to perform. So as it stands, we're now back to partisan political games as usual. God be with you, Mr. President.

see: http://edition.cnn.com/2010/POLITICS/12/15/tax.deal/



~~~~ my ten cents.

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