Income tax increases are going to increase for everyone january 1st if the bill does not pass. Even with a test vote in the senate, democrats who control the house will not let obamas proposal even be discussed with out it being scaled back.
"We believe that when it comes back to the House, that we will get a vote, and that we'll prevail there, because at the end of the day, no one wants to see taxes go up on 150 million Americans" on New Year's Day, Axelrod said. "No one wants to see 2 million people lose their unemployment insurance and everybody understands what it would mean for the economy if we don't get this done."
What does this mean for the US economic system?
2 comments:
This is a necessary step for further bills that can be passed to help the economy. It's may not be a good bill but it unfreeze the mental grid-lock created by both parties for a while now. It is expensive, sure, $855 billion but I think if the bill turns out to work it will help millions of American find new jobs and thus turn the economy around and the government then can collect tax payment again (as the tax cut deal will expire in 2 years).
Just this past week Illinois state voted to increase income tax rates by 75%. This is a huge difference and is hitting everyone hard but is maybe the only solution to the major budget problems Illinois is facing - Chicago can now hardly afford to have enough teachers and public officials.
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