The Bush Tax Cuts are about to expire.
If this happens, we will return to the higher tax rates set by the Clinton administration in the 90’s. This spells disaster for American business large and small. I don't see anything in the Democratic Party that says they're not comfortable raising the top tax rates to the level they were in the Clinton administration. That does not mean they won't avail themselves of the 'we're still recovering' notion and say those should be effective in 2012 rather than 2011. That might be one of the big fights coming here. The House might say 2011; the Senate will have difficulty with that notion.
The facts are as we stand right now, while still under the Bush cuts, the top 1% income tax payers paid 40% of all taxes last year. If the cuts expire, that figure will rise to 53%. To simplify this, the top 1/5th of wage earners last year paid 83% of all taxes.
If you take these cuts away from the top wage earners in this country, you can forget this fractious recovery we find ourselves being told we are having today. There will be no jobs. There will be no money going for conventions, large events, real estate purchases or big ticket items which means no work for the little guys like you and me.
The Bush Tax Cuts are the lynch pin. If it is pulled, our economy will fall apart and Obama is ready to pull it with his new budget. No one is saying it, because it’s a terrible fact we will all be facing.
I guarantee it.
2 comments:
I am not sure what you read or listen to but MANY are talking about this very subject from talking heads (Fox News), journalists like in the WSJ, talk radio (Limbaugh,Hannity,Medved,Gallagher,Beck,Prager,Hewitt,Ingram,Miller etc.) and I dare say every single republican on Capitol Hill.
Your point is valid but to say no one is speaking about it is just simply incorrect.
Thank you for your comment Christopher. I listen to many talk shows and had not heard anyone speaking on it. It came to mind when I was asked by my Pastor when the Bush cuts ended. If what you say is true, and I have no reason to doubt you, then that’s great and I hope people know the implications of this for they will profoundly affect the ability of the economy to recover if they are not extended. Again I thank you for your comments and I regret inferring I was a lonely soul out here seeing the bomb drop. I had personally not heard anyone speak of it recently.
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