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Fight Over Future of Bush Tax Cuts

Posted in Main Blog (All Posts) on July 25th, 2010 4:45 am by HL

Fight Over Future of Bush Tax Cuts
The Bush suite of fat-cat tax cuts are set to expire on December 31st of 2010, though many in Washington, including some Democrats, are poised to fight to maintain those cuts for the wealthy, and even extend them to the rest of the population. Critics of the cuts, including the Democratic leadership and President Obama, are hoping to allow Bush’s cuts for the wealthy to expire while lowering tax rates for those described as “middle class”—individuals earning less than $200,000, or households earning less than $250,000. —JCL The New York Times: An epic fight is brewing over what Congress and President Obama should do about the expiring Bush tax cuts, with such substantial economic and political consequences that it could shape the fall elections and fiscal policy for years to come. Democratic leaders, including Mr. Obama, say they are intent on letting the tax cuts for the wealthy expire as scheduled at the end of this year. But they have pledged to continue the lower tax rates for individuals earning less than $200,000 and families earning less than $250,000 — what Democrats call the middle class. Most Republicans want to extend the tax cuts for everyone, and some Democrats agree, saying it would be unwise to raise taxes on anyone while the economy remains weak. If no action is taken, taxes on income, dividends, capital gains and estates would all rise. Read more

Bush's budget

The Bush suite of fat-cat tax cuts are set to expire on December 31st of 2010, though many in Washington, including some Democrats, are poised to fight to maintain those cuts for the wealthy, and even extend them to the rest of the population.

Critics of the cuts, including the Democratic leadership and President Obama, are hoping to allow Bush’s cuts for the wealthy to expire while lowering tax rates for those described as “middle class”—individuals earning less than $200,000, or households earning less than $250,000. —JCL

The New York Times:

An epic fight is brewing over what Congress and President Obama should do about the expiring Bush tax cuts, with such substantial economic and political consequences that it could shape the fall elections and fiscal policy for years to come.

Democratic leaders, including Mr. Obama, say they are intent on letting the tax cuts for the wealthy expire as scheduled at the end of this year. But they have pledged to continue the lower tax rates for individuals earning less than $200,000 and families earning less than $250,000 — what Democrats call the middle class.

Most Republicans want to extend the tax cuts for everyone, and some Democrats agree, saying it would be unwise to raise taxes on anyone while the economy remains weak. If no action is taken, taxes on income, dividends, capital gains and estates would all rise.

Read more


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