Monday, November 15, 2010
Bush tax cuts: What nobody is talking about
The debate on whether or not to let the Bush tax cut expire is still up in the air. One question that pops up in everyone mind is that how can we have tax rates and deficit to be lower at the same time? We need tax rates to be higher so we can pay up the debt and at the same time, remains enough government funding for entitlement (social security, medicare, medicaid) and domestic discretionary programs (health research, education, national parks). Some argue that people can't afford higher tax rate at the moment but the fact is that since the Bush tax cut was implemented it did not prevent American corporation from shipping millions of American jobs to China. So what is the solution?
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2 comments:
I don't know the solution but I do know that large tax increases for the sole purpose of decreasing national debt would not be the best idea for a struggling economy trying to stay out of the dreadful recession it just came through. The economy is not fully back yet and an increase in tax rates may not effect the major corporations moving jobs abroad but would effect small business in our economy which employs a large portion of the population. I think an increase in tax rates would be very dangerous at this point in time.
I agree with john on this, it doesn't make any sense to increase taxes right now. We are not out of the woods with the economy, so why tighten peoples budgets more and have less investing in the economy. More spending is what we need not people sitting back and saving.
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