Monday, September 13, 2010
Extending the Bush tax cuts for a while may turn out to be prudent policy
This has been a controversial issue recently. President Barack Obama's proposal of renewing of cuts for all but the wealthy t would save perhaps $700 billion over the next ten years compared with a full extension. It is, however, dangerous way to attack the deficit at present. What should the government do? and Why?
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2 comments:
This is a very interesting article as it highlights the ways the government can bring about social equity among the masses by progressive taxation. However, these practices seem perfect in theory but lack substance in practicality. It will surely save $700 Billion but there are too many loop holes in the system to let this regulation progress without any hindrance. For instance, the taxes were made initially to make only the rich pay. The poor and the middle income groups were not to be affected by the taxes. However, it is very evident now, that the poor and the middle income groups pay the majority of taxes. Hence, the wealthy will surely have a way to get around the system and preserve their wealth.
This is a very interesting article. It is important to keep taxes low, but the government does have a defecit to pay off. We would all love to pay lower taxes, but it is also important to keep the government running at its full ability and to keep taxes low enough to keep spending high.
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