Thursday, September 2, 2010

The Bush Tax Cuts

Official photograph portrait of former U.S. Pr...Image via Wikipedia
There is alot of rumbling about the Bush Tax Cuts coming to an end this year. President Obama has been saying he wants the tax cuts to end for the rich but stay for the middle class. 
 
Senate Democrats don't have the votes to pass the Obama tax increases, according to the web site money.cnn.com. Even Democrats know it's a bad time to raise taxes in a faltering economy. 
 
They claim they'd favor a temporary extension for a year or 18 months. Some democrats even want to make the tax cuts permanant. Their theory is that second quarter GDP expanded at only 1.6 percent annual rate for the second quarter. So its not the right time yet.
 
In the Senate the votes are just not there to pass the Obama tax increase. But in the House Obama has the votes to pass his bill. September 13 the Senates recess is over and debate will start over the Obama tax bill. The senate has more deficit hawks than the House and with the Republicans it will be hard to make any quick progress. 
 
Senate Budget Chairman Kent Conrad, D-N.D. said last month he would be reluctant to let anyone's tax cuts expire just yet. He went on to say,"In a perfect world, I would not be cutting spending or raising taxes for the next 18 months to two years. " also that "The downturn is still very much with us". 
 
I disagree with the raising of taxes. Our representatives still don't have a clue how their spending and over taxation is one of our greatest problems. Having stability of the tax rates is important to business and personal planning. Also the Estate tax being brought back is unfair to family's. A lifetime of work has to be double taxed and family wealth has to be stolen from heirs is a disgrace. 
 
Further, I would like to see an across the board 10% reduction in the Federal budget. Just like my budget spending has been reduced in these recessionary times. I have had to increase my work extra to fill some income shortfalls. The government should be run like we run our home finances.


2 comments:

  1. The problem is spending and how much of GDP all forms of Government consume. We need some across the board cuts in federal spending like many of the states have had to do to live within their means. But all most members in Congress seem to know how to do is spend, spend, spend.... and this current crowd is the absolute worst in history. On of my favorite quotes from H.L. Menken is: "Every election is a sort of advance auction sale of stolen goods." That sums things up pretty well.

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  2. States have a finite amount of money to work with. If revenue falls shorts they make cuts. Just like we do in our homes. If the federal government falls short they borrow or print more money. Something is wrong here

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