With the upcoming election just around the corner, the Republicans and Democrats are about as far as apart as you can get when it comes to an agreement on what to do with the soon to expire Bush Tax Cuts. One camp wants to extend them or even make them permanent, while the other would like to do away with them all together; or at least let them expire on those making over $250K.
What do you think?
If you recall, President George Bush pushed for the tax cuts in 2001 and 2003 as a means to reform the tax codes and jump start the economy following the disastrous attacks of 9/11.
Initially, the cuts were due to expire in 2010 when it was thought that the boost to the economy the cuts provided should have eliminated the national debt. However, involvement in two wars and a steadily stagnant economy, followed by a financial crash in 2008, ballooned the debt into several trillion dollars.
In 2010, with a new President in office, the renewal debate turned nasty, with members of the House and Senate voting strictly along party lines. The divide consisted of those who wanted to cut government cost by program elimination only, and those who favored a tax increase with smaller, less radical cuts. The debate became so rancorous that the international rating agency, Moody’s, downgraded The U.S.’s credit rating, partially because of the debate, but also citing the government’s “inability to raise taxes”.
When a compromise was finally reached, it was a temporary solution. The debate will start again after the first of the year with the possibility of a new President and a new look House and Senate. No one is predicting the out come at this time.
Where do you stand?
Do you favor keeping the current rate or returning to pre-Bush tax rates? Do you favor a return to a previous or higher rate? If so, should it be an across the board return to the same rate for all income earners, or just those making over $250K?
We’d like to know and appreciate your participation!