The biggest battle in the lame duck session of Congress may well be over whether or not to extend the Bush administration’s tax cuts, which are scheduled to expire in January. The fact that this decision has been left until late in the eleventh hour, even though the expiration date has been known for years, tells us a lot about the utter irresponsibility of Congress.
Neither businesses nor individuals nor the Internal Revenue Service will know what to do until this issue is resolved. In a stalled economy, we do not need this prolonged uncertainty that can paralyze both consumer spending and investmentspending.
Republicans want the current tax rates to continue and Democrats want only the current tax rates for people earning less than “the rich”— variously defined— to continue, with everyone making more than some specified income to have their tax rates rise next year.
What makes predicting the outcome of this battle very iffy is that Republicans won a big majority in the House of Representatives in the recent election, but the tax cuts are scheduled to expire before the new members of Congress are sworn in— and the Democrats have a big majority in both Houses of Congress in the lame duck session, where this issue will be decided.
Theoretically, the Democrats could win, hands down, since they have the votes. But Congressional Democrats are well aware of how they lost big in the recent election, and some Democrats don’t want to gamble their own jobs in the next election by going the class warfare route.
Neither the Republicans nor the Democrats can afford to have all the tax rates go up in January because they couldn’t get together and pass a bill to prevent that from happening. But the nature of that bill matters, not just for politicians but— far more important— for the economy.
Former Secretary of Labor Robert Reich, now a professor at Berkeley, has made the case for the liberal Democrats’ position in an article in the November 28th issue of the San Francisco Chronicle titled “Extend benefits for jobless, not tax cuts for the rich.”
In punishing the rich for their success, are concentration camps too far in our future? With the IRS embedded in every facet of our existence, first they will take away our money and material goods for redistribution, then our health care, then our lives — all for the common good. The time to act is now … before the "boot on the throat" breaks our collective tracheas … while we stil have the power the Constitution conferred upon We the People to live united in freedom and to preserve it all cost.
The Bible says to those who have much, much is required…I hope the IRS has it's eye on YOU….
Martin: What do you know of my charitable works? In a free society, the government does not have a right to play Robin Hood — I contribute to causes and charities that I deem worthy. I do not begrudge anyone their wealth, but I see you have been bitten by the green, class-warfare monster. Be careful … what you wish for others may just come to roost in your home.
Happy Hanuukkah!
muchiboy
I really hope the GOP doesn't buckle in this fight. The Bush Tax Cuts should be extended. Besides the good economic arguments, the fact is, people have the right to the fruits of their labour and that should be the main issue here.
PLEASE consider the following:
1. As I understand it and my CPA agrees, an article by Art Laffer indicated that the existing Bush Tax Cuts allow individuals to cash-in IRAs and 401(k)s at a lower tax rate and WITHOUT A PENALTY. 2. If you, like some of us, are unemployed and may need to cash-in some IRA / 401k accounts to survive, what should be the best course of action WHILE WAITING FOR THE WASHINGTON jerks to decide? Will the NO PENALTY be carried over if Tax Cuts apply only to less than $250k incomes? 3. How long do we wait for these Rulers of the Universe to tell us what we can do WITH OUR MONEY? 4. Finally, anyone out there thinking of moving to Australia or New Zealand?
ps: Drudge headline says U.S. lending to European Union…are we FOOLS or what?!?!
Why do they keep saying "Tax CUT!" when the truth is:
Are we keeping our tax RATES the same, or are they going to be raised?
Anything else is a distortion
Yes raised from the existing tax code back to the level of the "Clinton Tax Increases" of 1993 is correct!
Look at all you fools the tax cut in bush era has collapsed the economy and also crippled the middle class
and it hasen't created any jobs what so ever so what part of this you don't get.This president needs to fight against these money hungry white racisist hogs, regarding his opinnion, on the the tax cut,and push his agenda, and I hope all the greedy rich Americans get taxed. Believe me its not going to hurt there shopping sprees in the luxury good stores and there mansions and private schools for there children with luxury foods.Get with the program you Americans the rich is not creating jobs here they are creating them outside of USA where the labour is cheaper so they can profit more and more to get more rich and that is so disgusting.
Amen!!!
"This president needs to fight against these money hungry white racisist hogs"
It seems "Class Warfare" is the issue, not how to run the government and collect money needed to pay for needed government services and functions.
Has any of you class warriors actually read a book
on economics or history? Nearly all economists agree
that lowering the tax burden leads to generalized
prosperity and increasing it lowers revenue, GDP and
employment. This has been shown again and again in our
own nations history. So just stop this nonsense argument.
In addition the Bush tax cuts did not tank the economy.
The economy was tanked by Barney Frank and regulators
forcing banks to give hundreds of billions in loans to
minorities who didn't qualify for the loan and could
never pay it back. So the rest of us are now paying these
loans back. So is the real racist here, please stand up.
AMEN!
and there you have it people. this is the type of uneducated ignorance we are up against. Masses upon masses of people trying to remain in the middle class in an attempt to stop the gubment from taking every last penny away from us to give to their "Gimme, Gimme" parisite constituants. Susans disjointed rant should be a warning and prime example to everyone concerning the quality of our current government education system. Where else could she have learned that no jobs were created during the bush II years. sheesh!!
You are too stupid to even suspect you are stupid. Revenues went way up when the Bush tax cuts were enacted, a matter of record not opinion.
The "money hungry white racists hogs" have been out working their butts off making payrolls, paying taxes, providing health insurance for their employees. What have you been doing? They have also seen their house values go down, many have lost money in the stock market, and others have seen prices go up on everything they need to get by. What is disgusting is that you would deny them the wages that they have earned and you think they owe you their hard earned money. My advise to you is to get a job, get off drugs, find faith and get married.
I think that Martin Feldstein's idea of capping tax expenditures is the way to go. His idea of having a limit to what anyone can take as a tax exemption makes some sense. He didn't say much about the impact that would have about housing but the U.S. economy should not be in the business of providing houses for everyone. His major point was that capping of tax expenditures does not penalize work, savings and investment.
As one who has worked in a correctional environment for many years,I would like to express my sympathies to the Israeli Correctional Officers who perished in the bush fires in the line of duty.Go Well,my Band of Brothers.Ron Grant