GOP members of the house appear to be poised to push the $600B tax cut through by Thursday, amid some opposition from house Democrats, notably minority leader Nancy Pelosi. She called the proposition "practically an immorality," as some Democrats believe the cut is too focused on business, saying 60% of cuts are directed at permanent reductions to businesses and 40% to families. Republicans believe that this tax cut will be a start to further tax and health care overhauls next year, fully expecting vetos and hoping to excite conservative voters ahead of next years election.
This news coupled with the Fed's announcement of raised interest rates may cause more inflation than expected. It will be interesting to see how voters view these tax cuts, as most voters are not educated in economics and are more adverse to taxes than nearly any other nation. I am concerned that many are unaware of the possible negative impact this could have on the economy.
http://www.cnbc.com/2015/12/17/led-by-gop-house-poised-to-renew-600b-in-tax-cuts.html
2 comments:
It is a rather major decision to make, and with the rise of interest rate, there certainly will be some negative impact to the future economy, yet so fat the turn out should be possitive
I can see that having taxes cut is a great political strategy, but I agreed with you on the fact that this might have a negative impact on the economy as the government spending might go into a deeper deficit with this tax cut.
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