In a piece by the NY Times out yesterday, Secretary of the Treasury Timothy Geithner said letting the Bush tax cuts expire at the end of this year for those who make more than $250,000 a year would only affect 2 to 3% of all Americans. He also said that he did not believe that letting the tax cuts for those people expire would hamper economic growth.
On the surface it doesn’t seem like much to let these tax cuts expire, especially since it affects such a small percentage of Americans. They’re also the richest ones too, so they can afford it, right? According to the National Taxpayers Union and the Heritage Foundation, the wealthiest Americans already pay the vast majority of all taxes, with the top 1% already paying over 40% of all income taxes and the top 5% paying about 60%. The top 2 and 3% will fall somewhere in between. Regardless, they’re paying a huge share of the total amount of income taxes and that percentage has been increasing every year, despite the Bush tax cuts. So much for President Bush really being in bed with big business, huh? Do we really need to ask more of them than we are already asking? And, like I explained in my piece “Are Profits Bad?” many of these people are the ones who provide jobs. If you keep taxing them, they have less money available to be able to hire employees, so I’d really like to know how taxing them more is not going to make an already bad situation worse.
Speaking of making a bad situation worse, economist Art Laffer wrote this piece for the Wall Street Journal predicting an economic collapse next year as the Bush tax cuts expire. I hope he’s wrong on his prediction but I fear he may be dead on.
If we need to solve our current deficit problem and prop up the economy at the same time there is a simple fix. It’s called cutting spending, extending the Bush tax cuts, and trashing both the healthcare and financial reform bills. Doing so will end the uncertainty that is plaguing the economy right now and kick it into high gear.
Oh and on a side note, Liberal seem to love fairness and equality, so how about we start making the poor start paying their fair share by taxing all the benefits they get from the government? 47% of Americans paid no income taxes in 2009 as it was but still receive the benefits. That isn’t fair. I say we fix this. I mean, if we start actually making the other half of the country pay taxes, it could do wonders for the deficit, right?