Tuesday, December 07, 2010

Bush tax cuts will be extended for two years

Here's one campaign promise I'm glad that President Obama broke. The Bush tax cuts will be extended for everyone. He's angered his left-wing base, as Rich Lowry writes in National Review Online: "The Bush tax cuts exist in the liberal imagination somewhere in a ring of hell between 'torture' and the Iraq War."

Senate Minority Leader Mitch McConnell (R-KY) made the following statement yesterday afternoon:

I appreciate the determined efforts of the President and Vice President in working with Republicans on a bipartisan plan to prevent a tax hike on any American and in creating incentives for economic growth. Their efforts reflect a growing bipartisan belief that a new direction is needed if we are to revive the economy and help put millions of Americans back to work. Members of the Senate and House will review this bipartisan agreement, but I am optimistic that Democrats in Congress will show the same openness to preventing tax hikes the administration has already shown.
But it's only a two year extension. But by then we could be looking at a Republican Senate and a Republican president-elect.

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2 comments:

  1. Samuel Jones11:58 AM

    What a hypocrite. Our president said time after time that that those tax breaks will be repealed. So what does he do? how extends them in exchange, to be able to spend more of our money. What a joke.

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  2. Scoremore8:39 AM

    You talk like you think raising taxes brings in more money. It doesn’t. It just slows the economy down, and you end up collecting less money anyway. The people who pay those taxes get a vote. They can refrain from investing, defer income, take their vacation instead of working, and a host of other micro and macro decisions that will lessen their tax burden.
    I saw a chart recently that showed that actual tax receipts as a percentage of GDP has remained basically constant at around 19% for the last 50 years or so.
    So, if you want to collect more taxes, you should try to do something to increase GDP - like maybe cut taxes even further.

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