5 Myths About the Bush Tax Cuts
Link from The Washington Post. This is a very good, fact-based article highlighting five myths about the Bush tax cuts. Since we can expect much more debate on this topic in the coming months, I thought it might be helpful to become more informed. Here are the myths explored in the article:
1. Extending the tax cuts would be a good way to stimulate the economy.
2. Allowing the high-income tax cuts to expire would hurt small businesses.
3. Making the tax cuts permanent will lead to long-term growth.
4. The Bush tax cuts are the main cause of the budget deficit.
5. Continuing the tax cuts won't doom the long-term fiscal picture; entitlements are the real problem.
I know the likely scenario will be that the tax cuts will remain for couples making under $250,000 and expire for the rich. Personally, I think they should consider lowering the cut-off to couples making $200,000 or even lower. It would go a long way in cutting the deficit and I don't think it would negatively impact such couples in devastating ways. Basically, we would be returning to rates matching the Clinton years and those were pretty good years for our economy if I recall correctly. As someone who would be "spared" of a tax increase under President Obama's plan, I would be willing to sacrifice my tax cut for the good of the nation and if it would mean saving needed programs. What I do know is that the typical over-spending (military budget, wars, etc.) and demands for tax cuts is a pattern we can no longer indulge in. Something must change if we are to return to the days of surplus, or even break even.