Monday, August 23, 2010

The Bush Tax Cuts

Remember the Bush tax cuts? No, I don't really either. At my income level, the tax cut was near invisible. Bush's tax cuts for the wealthy, and they were for the wealthy, are soon set to expire. Conservatives want you to think President Obama wants the tax cuts to end for everyone, but he doesn't. Ninety-eight percent of us get to keep the new tax brackets and the other 2% keep paying. At least, that's the plan.

Paul Krugman has a must read opinion piece in today's NYT's. Krugman reminds us that Republicans wrote the tax cut law so it would expire soon. Why did they do that? Two reasons, first to hide the cost of the tax cuts and second, so they could pass the law using reconciliation (the procedure Democrats aren't supposed to use to pass laws).

Making all the tax cuts permanent would cost 680 billion dollars over ten years. Conservatives want to spend that much money without making spending cuts. After all, tax cuts pay for themselves in conservative-world.

Right now, I'm guessing the Conservatives win on this issue. The tax cuts will be extended for all because Democrats are spineless and because it's what the rich want. And, the rich give the money to elect the politicians.

I fear for our economic future. I'm actually starting to believe I need to get what money I have and put it someplace my mattress.

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