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Monday, November 19, 2012

The New Republic: Jonathan Cohn: "Obama Tax Cuts For Middle Class—Let Them Expire, Eventually"

Obama Tax Cuts For Middle Class—Let Them Expire, Eventually | The New Republic

This idea of letting all of the Bush tax cuts expire even on the middle class at least in the short term, would be a disaster. Pre 2001 people in the bottom tax rate making up to I believe 75K$ a year, paid 15% in income taxes, after the Bush tax cuts and there were some actual good provisions in it. Lower middle class and middle class workers were paying 10% in Federal income taxes, they've seen a 50% tax cut over. Ten years, so if you were a plumber or construction worker making 50K$ a year back in 2000, you paid. 7,500K$ a year in income taxes, after 2001 someone with the same income was now paying 5,000K$ a year. In income taxes, they saw a 2,500K$ reduction in income taxes and with how badly the economy has done the last. Ten years with a lot of people in that income bracket out of work or working less then they would prefer or could even afford. That extra 2,500K$ a year could be the difference in someone making their car payments or mortgage payments, putting money away for their kids. College education and not being able to do that because the Federal Government is taking an extra 2,500K$. A year in taxes.

So raising or increasing taxes on people who can't afford it right now, is bad for the economy and deficit reduction. Because without a strong economy, with strong economic and job growth, we'll never get the debt and deficit under control. Because we'll never generate the revenue needed as a country to accomplish that, House Republicans will never go along with the 250K$. Cutoff point to where we increase taxes in this Congress or in the next Congress, even if the Democratic Senate were to pass that. And going over to the fiscal cliff to try to prove me and others wrong on this, is not the way to find out, we need to avoid that. And come up with a balance approach that will work that both Democrats and Republicans can agree to that. Won't hurt anyone who can't afford to be hit right now and with how Speaker Boehner is talking right now, we can do this.

At some point whether its in this Congress or not, Speaker Boehner will go along with something like a millionaires tax. As long as its used to pay down the debt and deficit and comes with serious budget cuts as well and thats what we need, new revenue and budget cuts that we can do. Without hurting people who can't afford it and more importantly hurting the economy and we can do this by making. Entitlements stronger, as well as the broader safety net stronger and more affordable and reforming them in. A way where we can actually put these people to work and get them off of public assistance all together. And have these people paying taxes because they can afford it and we can do more with the defense budget and get past a. Cold war strategy and more ready for the 21st Century but middle class tax hikes doesn't get us there.

As the President says we need a balance approach that works and doesn't hurt anyone who can't afford it and. Actually solves the problems in front of us and something like a millionaires tax and entitlement reform and more savings in defense. Will get us there and then of course something to spark new economic growth will get the job done but you. Don't increases taxes on people that you want to spend money, if you are trying to spark new economic growth.