In 2003, President Bush signed the Jobs and Growth Tax Relief Reconciliation Act, known to most of us as the “Bush tax cuts.” Federal rates were lowered for individual tax rates, capital gains, dividends, and estate taxes. These cuts are set to expire at the end of this year. This is a hot topic that you will see plenty of people debating as we get closer to the November elections.
After 9/11 the US economy looked as if it was going to go into a major recession. People were scared and saving more and spending less. To spur growth the Chairman of the Federal Reserve, Alan Greenspan, dropped interest rates and the President was able to push tax cuts through Congress. These actions prevented a significant recession in 2003 and led to enormous growth in the stock and the real estate market.
At this point we find the USA suffering from the Great Recession started in 2008. We have already dropped interest rates as low as they can go and with our yearly deficit at an all time high, we are unable to cut taxes any further. The question is should we repeal the Bush tax cuts amidst this challenged economy or leave them be? The Left argues that with such a significant deficit we have no choice but to increase taxes. The Right recognizes this deficit issue but favors taxes to be left alone and the Federal government to lessen spending.
In my opinion, the right answer is for the Bush tax cuts to remain intact while the American economy is struggling. With an almost 10% unemployment rate, real estate prices dropping, possible deflation, and banks not lending, raising taxes right now is a death wish. How can our economy, which is primarily based on consumerism, grow if the government is taking more money out of our pockets? Raising taxes now would be like taking medicine away from a sick person.
The Left argues that taxes wouldn’t really be raised, they would just return to levels pre 2003. This is true but during the late 90s and up until 9/11 our economy was growing by leaps and bounds due to the dot-com revolution. Now our economy is barely breathing and its future is uncertain.
To keep you and your family healthy and happy you need to plan your economic future. Though I hope the Bush tax cuts don’t expire at the end of the year, it’s important for you to know how it is going to affect your budget if they do. Below are the tax rates pre and post 2003. If your budget is tight already, I suggest you take out a calculator and figure out how many fewer dollars you could possibly have to spend. This way you have prepared for the worst case tax scenario and if the tax rates stay the same, you’ll be happy and have some money saved.
We need to reverse this trend Economically or it will collapse the economies completely , http://www.population-security.org/11-CH3.html , http://economix.blogs.nytimes.com/2010/07/26/arma...
Obama / Keynesian Economic Policy Not Working ; China Calls Our Bluff , but USA can extend the Bush Tax cuts and save the economy by rebooting growth with more money in the hands of American People and cut Government Spending , together this will work !!!!!!!!
The larger Question can be asking is if we let the Government take more taxes will they redistribute it properly or just feed it to their Political Interests to stage elections ???
In the scheme of this debate we the people can make the case for leaving the money in the hands of the masses as a better way to stimulate the economy as opposed to letting Government hike the taxes and it be concentrated into the Fewer hands of the Government that would act as a bottle neck and stalling the process of wealth Redistribution even more , because of the lower volume of people handling the cash . Need to scream this fact to the people and challenge the Liberals to debate why they think Government will be the better distributor of this cash when the record shows this to be not the case !!!!!!!!
The Bush Tax cuts have got to be extended because of this . We have to Reboot the Growth of the Economy with tax cuts and Cut Government spending !!!!! And then re-work the tax code to reflect a Growth prospective looking forward ……
here is a product of to much Government … http://www.youtube.com/watch?v=5xzd3puYmiM&fe...
Six Reasons Why the Capital Gains Tax Should Be Abolished … http://www.youtube.com/watch?v=_yXINN1tD54&fe...
The Flat Tax: How it Works and Why it is Good for America … http://www.youtube.com/watch?v=nhUOpNve1bY&fe...
If we do not extend the Bush Tax cuts we will not have the tools we need to re assess the market valuations so our GDP can have a chance to stabilize under this weak economic recovery , if you can call debt/stimulus injections the ingredients of this recovery . But the turning point today is do we now stimulate the private sector by extending the Bush Tax cuts or continue to monetize the recovery with debt/stimulus , and if we do the Keynesian method when does China Call for their debts to be paid ?
China Calls Our Bluff: The US is Insolvent and Faces Bankruptcy as a Pure Debtor Nation
by Washington’s Blog
July 25, 2010
http://www.georgewashington2.blogspot.com/2010/07...
And once China says pay up , this is what happens to the reserve currency , and the sucking sound on import supply through the USA economic sectors will devastate the supply and access of vital needs in the USA , a nasty we might want to consider …..I would think common sense would over rule Ego in Washington at this point in time but so far domestic policy has gone against the will of the people , but Internationally policy might be different . http://www.youtube.com/watch?v=ga5c6SPBl-I&fe...
http://www.youtube.com/watch?v=an7Ed9UTApU&fe...
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