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Originally Posted by Danzig
i'm hoping everyone has to come to the realization that there is no such thing as a temporary tax cut or hike.
i'm one of those wondering just what will happen if we go off this fiscal 'cliff'. is it a cliffs of dover height, or two foot retaining wall cliff? if the bush 'temporary'  tax cuts expire, and defense spending cuts go in-will it really matter?
i'd rather they let all the cuts expire than keep extending them for everyone. now, had the cuts to the rich resulted in the job growth they were touting would be a result, i'd be all for continuing them. except, that's a lie. or a damned lie. |
So true about the job growth from cuts on the highest levels of income being bunk. Why we based economic policy on something drawn on the back of a cocktail napkin I'll never understand Then again, I came from a state that elected Rick Santorum to the Senate, so stupidity knows no bounds.
The full repeal of the Bush tax cuts may actually have somewhat of a negative effect on the economy, as middle-class people will have less spending money, and as there are a lot of middle-class people, that will affect consumer spending and make the economy contract somewhat.
The best course, from what I've read, would be at this point to extend the rates on income under $250,000, as middle-class people are likely to spend that money, which is good for the economy. There's no benefit to cuts on income above that, as it's not likely to be spent and in fact, would be better off taken in tax because the government will spend it on things that do drive the economy.
Essentially, you want the money being spent, not hoarded. And middle class are more likely to spend.