31 economists were surveyed by CNNmoney, and most agreed that the Obama Administration should choose to continue the Bush tax cuts for all income categories. Many argue that eliminating them for the top 2 percent of earners, which is seemingly what the administration currently favors, would strain small businesses (though this is debatable). Others, in favor of eliminating the tax cuts for the top 2 percent of earners, argue that the money not going to taxes from this income bracket is saved anyways. Thus, it does not have as much of an impact as taxes on the middle or lower class do.
While most of the economists surveyed agreed that the tax cuts need to be extended in some form, others, like former FED chair Alan Greenspan, argued that the current US deficit should lead the administration to decide not to extend the tax cuts for anyone.
I agree with opponents of the tax increase because of the delicate economic situation. We want consumers to spend and a decrease in disposable income will not help at all. One option for the U.S government to increase its revenue is the sale of treasury bonds.
ReplyDeleteI think that the tax cuts should be extended, but revised. They should still apply to everyone but in different ways, maybe giving bigger cuts to those who need it most.
ReplyDeleteI think President Obama should let the tax cuts expire for the top 2% since the IRS estimates only 3% of small businesses will be affected and because the top 2% will only save their money whereas cash is desperately needed by the middle and lower classes, who will more likely spend their tax cuts and stimulate the economy.
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