Some Dems in Favor of Extending Bush Tax Cuts Set To Expire at End of 2010

The debate between the Democrats and Republicans whether or not to extend the Bush Tax Cuts, is starting to heat up as the November midterm elections are less than 100 days away.They are set to expire December 31st,2010.

The Dems have always made the case that the tax cuts mainly benefited the wealthy.In fact,the Bush Tax Cuts that were signed into law in 2001,2002, and 2003, granted all U.S. citizens some form of tax relief. Consequently,if they are not extended,it will affect all of us as taxpayers. All of the marginal rates will be
increased,as well as capital gains and dividends.

The majority leader of the Senate,Harry Reid,and House Speaker Nancy Pelosi, tell us that the Bush Tax Cuts are the main reason that we are running such huge deficits.The fact is,when tax cuts have been implemented across the board in the past,revenue collected actually increased. In turn,this will also give businesses and employers that much more operating money in which they can use to expand their business and hire new employees.This would certainly be a great improvement in the economic outlook.

We hear from some Democrats, including the Obama administration,that they are considering letting only the cuts for the wealthy to expire.They are defined as a single person making $200,000 or more and a married couple making $250,000 or more.

Last week Democratic Senator Kent Conrad,N.D.,citing the deep recession that we are in,plus high unemployment,has suggested that he and others are considering to extending all of the Bush Tax Cuts. He stated that this is needed to avoid a double-dip recession.

The goal of any business,large or small, is to make a profit.Employees are hired to help reach this goal. When a business cuts its resale prices,it hopes to make more revenue by increasing sales volume and turning over its inventory.If they are successful,it will create more revenue all the way up and down the supply chain. Suppliers will need to furnish more products and more raw materials will be used to make the products. Rising water lifts all boats.This is economics 101.

Call your Congressman and Senators and tell them that we know how to spend the money that we make more so than them. If they want to decrease the deficit,then they should stop all of the obscene wasteful spending.Show us that you can do this first,then we will talk about tax increases.