deficits to continue breaking records

[Riot]

Originally Posted by Danzig

what about bernanke's statements, and greenspan conceding that allowing the cuts to expire would slow growth?

They are far smarter than I am about it.

[clyde]

Get Quiet!! something good to drink--quick!

[Danzig]

here's the main issue...if the tax cuts are just allowed to expire, they don't just raise the tax rate on the rich. they raise them on everyone. so, when obama says just let them expire, which is his plan, he's advocating a huge tax increase on the poor and the middle class, not just the wealthy as he would have you believe. and that's why many democrats are speaking out against the plan, they don't want across the board increases.

http://www.msnbc.msn.com/id/38400016...new_york_times

Epic battle looms in Washington over expiring Bush tax cuts
Fight to serve as proxy for bigger political clashes

From both political and policy perspectives, the tax issue is dizzyingly complex, and even some of Washington’s most grizzled legislative operatives say they cannot predict the outcome.

Some liberals want Mr. Obama to keep his promise to raise taxes on the rich, and the White House’s budget forecasts rely heavily on rolling the top income tax rates back to their pre-2001 levels. Some fiscal hawks warn that extending the tax cuts would add more than $2 trillion to the federal budget deficits at a time when the national debt is becoming an economic concern and a political issue. Political economists are fiercely divided.


The issue is further complicated by the rising concern among voters about the federal deficit, which would be increased by roughly $1.5 trillion over 10 years just by continuing the tax breaks for the middle class. Many economists say the nation’s debt load is already headed to risky levels.

But some lawmakers, including Mr. Wyden, say the deficit concerns and the attention on the debt commission could help forge a deal: a short-term continuation of the tax cuts for the middle class, and perhaps some new tax breaks for businesses, that would buy lawmakers time to undertake a broad overhaul of the tax code in the next Congress.

[clyde]

Danny..please.



This thread has been destroyed.

[Riot]

Originally Posted by Danzig

here's the main issue...if the tax cuts are just allowed to expire, they don't just raise the tax rate on the rich. they raise them on everyone. so, when obama says just let them expire, which is his plan, he's advocating a huge tax increase on the poor and the middle class, not just the wealthy as he would have you believe. .

No, Obama's recommendation is to let the tax cuts on the wealthiest expire (the top 2-3%) - which is Bernanke & Geithners recommendation, too - and to extend the tax cuts for everyone else.

What Congress will end up doing we'll have to see.

[Danzig]

it's going to be rather tricky for them to extend some, while cutting others. the whole thing has to be settled somehow. we're in quite a pickle. i'm not quite sure how they're going to reconcile this. or how they can add to the deficit while keeping tax cuts for some. or how they can chance stalling any gains by eliminating tax cuts that could affect small business.

[clyde]

Originally Posted by Danzig

it's going to be rather tricky for them to extend some, while cutting others. the whole thing has to be settled somehow. we're in quite a pickle. i'm not quite sure how they're going to reconcile this. or how they can add to the deficit while keeping tax cuts for some. or how they can chance stalling any gains by eliminating tax cuts that could affect small business.

What seems to be your primary malfunction here, ma'amski?

[joeydb]

Originally Posted by Riot

No, Obama's recommendation is to let the tax cuts on the wealthiest expire (the top 2-3%) - which is Bernanke & Geithners recommendation, too - and to extend the tax cuts for everyone else.

This is also called the redistribution of wealth.

[Riot]

Originally Posted by joeydb

This is also called the redistribution of wealth.

It's also called trying to keep the economy stimulated, not putting additional burdens on the middle class, while trying to lower the deficit a bit.

[joeydb]

To reduce the burdens on the middle class and reduce the deficit, cut spending.

[gales0678]

[quote=Riot;673822] No, Obama's recommendation is to let the tax cuts on the wealthiest expire (the top 2-3%) - which is Bernanke & Geithners recommendation, too - and to extend the tax cuts for everyone else.

What Congress will end up doing we'll have to see.[/QUOTE]



my guess is that all the rates on personal income levels will go up

[Danzig]

it's very possible that the whole thing is allowed to expire. unless they pass something saying otherwise, that's what will happen. what are the odds of congress getting something passed between now and then? with elections coming up, people will be afraid how to vote. after elections, who knows? not much time to get something done.

[gales0678]

Originally Posted by Danzig

it's very possible that the whole thing is allowed to expire. unless they pass something saying otherwise, that's what will happen. what are the odds of congress getting something passed between now and then? with elections coming up, people will be afraid how to vote. after elections, who knows? not much time to get something done.

taxes are already going up on the poor and middle becuase of the new health care bill , making the bush tax cuts expire for them on the personal rate would be suicidal for the dems