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Thursday, July 21, 2011

Sen. Chuck Schumer to GOP: Grover Norquist's OK Letting Millionaire Tax Breaks Expire in Debt Deal



I actually still disagree with Conservative Anti Tax Crusader Grover Norquist about his latest position on the Bush Tax Cuts. Letting them expire would be a Tax Hike, perhaps not a Tax Raise meaning creating a new Tax Bracket. But its definitely a Tax Hike, for the simple fact that increasing the Tax Rates on wealthy people from what they are currently now. Would mean they would be paying more in taxes in both percentage and actuality. But thats fine with me, High Earners should pay more in taxes and get a lot of their Tax Loopholes closed. For the simple fact that we have a huge debt and deficit problem that needs to be addressed. And these Tax Hikes would raise around 200B$ a year in new Tax Revenue that would paid to help pay down the deficit and debt. Not to be reinvested in the Federal Government on new spending that the House Progressive Caucus and its allies would like to see done with that revenue. This revenue wouldn't hurt the economy, because High Earners aren't spending much of this money right now to create new jobs and invest in the economy. And that they can afford these Tax Hikes right now because of how well they are doing right now and how well they have been doing. What I'm not in favor of is letting the all of the Bush Tax Cuts expire or passing new Tax Hikes on the Middle Class. Which again is what the House Progressive Caucus and their allies are in favor of and reinvesting that money in the Federal Government for new spending. Passing Tax Hikes on people who are struggling just to pay their bills right now and perhaps living off of whatever savings they may have and are perhaps unemployed. Would be bad for the economy, because these people would have even less money to spend, which means they would spend less. The last thing we want to do right now is create less demand in an economy with low demand, which is one of the reasons for our High Unemployment, Low Economic Growth and Low Job Growth. What we should be doing instead is encouraging the Middle Class to spend more money to create more demand in the economy. Which would create higher Job Growth, and higher Economic Growth and create more jobs to lower our Unemployment Rate.

I'm glad to see Grover Norquist come to his senses so to speak and wake up to the fact that new Tax Hikes on the wealthy could be part of a Deficit Reduction Package. Perhaps I'm taking his position too far and some of this on his position is wishful thinking. But he apparently he has opened the door to Tax Hikes.