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Bush tax cuts Archive

Monday

6

December 2010

0

COMMENTS

Suddenly They Don't Like Compromise

Written by , Posted in Economics & the Economy, Taxes

The news is indicating that the rumored tax compromise is now a done deal. Obama will accept that he must refrain from raising taxes in the midst of a sluggish economy, and in return Republicans will allow passage of an unprecedented third year for unemployment benefits, transforming the once temporary assistance program into a new permanent and never ending entitlement.

Some Democrats, and in particular Obama’s hard left base, are revolting.  Not being able to raise taxes is apparently where they draw their line in the sand (and to think they routinely manage to deny the label of tax and spend liberals with a straight face). It seems they really, deeply, truly wanted to take American down with the class-warfare ship.

But what I want to know is: what happened to the great benefits of compromise? For years these hard left radicals have feigned offense at the “partisan culture” of Washington that supposedly made compromise impossible. To hear them tell it, you’d have thought compromise was next only to godliness. But as soon as they are asked to do something so simple as not raise taxes when the unemployment rate is 9.8% in exchange for a massive handout and entitlement extension, they freak out.

True colors.

Monday

30

August 2010

0

COMMENTS

Economists Call for Tax Cut Extension

Written by , Posted in Economics & the Economy, Taxes

The Wall Street Journal blog Real Time Economics is reporting that a 60% majority of economists surveyed by the National Association for Business Economics say the current rates for capital gains and dividends should not be raised to expire at the end of the year as currently scheduled.  A further 22% think the rates should be extended for middle-income payers, but not the wealthy.

At least 60% of economists surveyed by the National Association for Business Economics said lower tax rates on capital gains and dividends should not be allowed to expire as provided under current law. Another 22% said the lower rate on capital gains and dividends should be preserved for middle-income taxpayers, but not for the wealthy.

The findings point to increasing nervousness about the impact the expiration of tax cuts could have on the struggling recovery, as Congress gears up for a fall debate on how to deal with the tax cuts.

…Opinion among economists was a little more evenly divided with regard to the expiration of individual income tax rates. Fifty-four percent of those surveyed by NABE favored extending the current rates, while 33% favor Obama’s plan to let rates rise on the wealthy.

In order to provide the most economic impact, tax rates on capital gains and dividends should remain low – or better yet, be eliminated – for all Americans.  As this recent Wall Street Journal correctly points out, “rich people are the most responsive to changes in tax rates.” Thus, it would be a mistake to succumb to class-warfare and narrowly target tax relief.