The discussion about what the government should do to recover the economy. A recent survey was made what would be the consequence if the government would chose to keep the tax cuts for low income individuals but increase for those that make $200,000 a year or couples earning $250,000 or more. This limited increase would raise an estimated $700 billion over the next 10 years. But there are still economists that say that this is not the way the government should go. Alan Greenspan debates that “the size of U.S. budget deficit, the government can't afford to extend anyone's tax break”. The future is still uncertain, one thing is certain; the economy needs a big boost.
Monday, September 20, 2010
Economists: Extend Bush tax cuts for everyone
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It's interesting to me that the expiration of the tax breaks for the wealthy alone will, over the next ten years, balance the bailout. I've heard tax rates are some of the lowest they've ever been, but I don't know this for certain. But as it stands right now, I don't see a dramatic harm to letting the tax breaks for the 250k+ group expire.
ReplyDeleteUh oh. Al Greenspan said that the size of the U.S. budget deficit is too big that the government cannot afford to extend anyone's tax break? I'm curious to hear Greenspan's solution.
ReplyDeleteAlso, Jay. Which 250k+ "group" are you talking about? The individuals or the families? I believe we should allow the extension of the tax breaks for the families, rather than letting it expire because it would definitely harm them depending on the range of their wealth. The expiration for the tax breaks wouldn't hurt the individuals much.
If the government is able to bring in enough revenue by taxing the wealthiest Americans to cover the deficit, it seems like a positive move for the economy. The Clinton Administration taxed the rich and the economy prospered, whereas the Bush Tax Cuts led to a collapse in the economy. The budget deficit needs this.
ReplyDeleteAlthough I am more inclined to side with the elimination, I am not sure, with the current situation of the economy with unemployment just under 10%, if the elimination of these taxes may just end up hurting more Americans as the small businesses are affected.