Friday, November 12, 2010
Tax Cuts in America
Obama said he was committed to working with Democrats and Republicans during the lame duck session to guarantee the extension of middle class tax cuts, but denied that meant he was necessarily willing to cave on the matter of extentding those cuts for wealthy Americans. He says his number one priority is making sure that we make the middle class tax cuts permanent and that we give certainty to the ninety-eight percent of Americans who are affected by those tax breaks. He denied that he will accept extensions of the Bush- era tax cuts. He might be willing to accept the extensions for all tax brackets, not just the middle class.
President Obama proposes to let the Bush tax cuts for the rich expire as a way of saving $700 billion over the next 10 years. He says that our nation cannot afford those cuts, given the unsustainable outlook for the federal budget and the threat it poses to both our short-term and long-term economic health.
But that savings is just a fraction of the $2.2 trillion cost of the generously defined middle-class portions of the Bush tax cuts, which President Obama does want to extend. I think having a tax cut will be a great decision and will result in a better america and better things going on in the near future.We cannot afford to extend the Bush tax cut if we are going through with it. If we did extend the Bush tax cut, we will also have looming deficits. These affects of tax cuts deals with the fact that after the new election, the fact that their are many more Republicans in office means that the tax cuts are more likely to stay.