Seems that there is a bit of maneuvering on these Bush era tax break extensions. It seems there is common ground that a deal can be made.
The Republicans do not want this on their plate when they take office and the Democrats want to deal for benefits for the unemployed while they can so the lame duck congress will take the hit if there is one to take.
While I do not advocate raising taxes on anyone without a eminent good reason… Lets look at what all the tax breaks have done in the last 11 years.
A Little tax break for folks earning under 200,000 a year and the two (count’m 2) wholesale checks given to taxpayers in the tune of 300 to 600 in cash each that we had to borrow from China and India to be able to deliver adding to the budget deficit. (gee I thought the republicans were spend thrifty and pay-as-you-go?)
So here is the CBO (congressional budget office) data on the effects of the cuts.
It shows that as the cuts and checks came into effect, revenue was up but the GDP and relationship to the GDP came down so your money and property basically became worth less and goods cost more.
Also keep in mind that increases in revenue are mostly from government spending on the war in Iraq and Afganistan as the military goods needed, keeps many jobs and tax revenue going for the country. If not for those wars, this chart would look much worse.
It does scare me what happens when these wars end. There is so much mis-information about them that it is no wonder the public is so confused.
So I am sorry, they can not make a case for cutting taxes to me. Cut taxes after you figure out how to spend thrifty. Otherwise you are just adding to the problem.
A case can be made that the price of oil/energy is the largest effect of any good in the economy and the U.S. strength as far as national security and cost and taxes for it are concerned.
These tax breaks have cost the public much more than they have benefited from them but in a hidden way. What did Ronald Reagan call that…. ” SMOKE AND MIRRORS”. Funny I should bring up that name as Reagan. While he is credited for the largest tax break in history, also passes one of the largest tax increases in history just two years later.
They do not tell you that they couldn’t work and it was the tax increase that led the nation to a great GDP, jobs and revenue.
At least Reagan was a “compromiser”, not something I can say about those in office now and about to take office.