Each argument presented is predicated on the idea that the budget deficit is a critical problem that must be addressed, and that the tax cuts are critical element of addressing the deficit. Long-term interest rates on U.S. Treasuries are below 5%, indicating that there is little concern in the markets about the creditworthiness of the U.S. government -- deficits are not worrying the markets, only the politicians. This would imply that it is economically safe to allow all of the tax cuts to continue. Even though there are other causes of deficit -- bailouts and wars in particular -- and other means of addressing the long-run deficit such as health care reform, the Bush tax cuts still accounted for 25% of this year's deficit (Gale, 2010). As such, not extended the tax cuts can have a significant impact on the deficit, in particular when combined with measures to control other contributing costs.
Ultimately, determining the correct course of action with respect to the Bush tax cuts necessitates carefully weighing two needs that are typically viewed as mutually exclusive -- using budgetary measures to stimulate the economy and reducing the deficit. Given that long-term interest rates clearly indicate that markets are not concerned about the deficit, the primary concern must be the economy. The tax cuts therefore should be extended in order to avoid a contraction in demand, critical when the primary problem in the economy today is a lack of demand.
The tax cuts should not be extended, however, for those in the highest tax bracket. While this line in the sand...
(the Bush Tax Cut: One Year Later) The members of the AFSCME believe that the Taxes imposed under the Bush administration has influenced them very unenthusiastically, since it has assisted to restrict their capability to concentrate on vital national problems for fairly a few years, due to the reality that the Tax Act comprises every clause that would help the affluent and well-to-do and might add more new tax cuts
Tax Cuts The current economic circumstances of the United States are dire. Political strategists and economic specialists have been trying to formulate plans for how to alleviate the situation and save the economy. Many have argued that the most important step in economic recovery is in the creation of new jobs so that the current unemployment, which is now more than 10%, will lessen. This is very important, but another step
Economy in the News: Tax Cuts for Business In today's current economic situation within the United States of America, citizens are increasingly interested in facets of the economy that were once able to fly under the radar with minimal notice from economic laymen. However, with the country still dealing with the effects of a massive recession, economic initiatives undertaken within the country have come under intense scrutiny from the American public,
In addition, the state's various tax revenues would dry up by the year 2005 according to the new tax plan, and the repeal of the federal estate tax would be gradually phased out over a period of ten years. (the Impact of the Bush Tax Cut on Working Families) In general, all state taxes are based on an equation that says that all credit must be based against a federal
First, this brings Social Security's promises close to what Social Security can afford to pay. Second, this focuses benefits on people who need it the most, the ones who are least likely to have other types of retirement plans." says an analyst at the Heritage Foundation, David John (Lambro, 2005). It is believed that people making about $110,000 or more would have benefits based on price increases which in turn
Taxes Estate taxes, as well as Gifts tax have an influence on individuals in the United States of America. The Federal government imposes laws that govern Gifts and Estates. There has been a lot of uncertainty on Gift and Estate tax, but this cloud has finally disappeared. This reprieve is however, temporal since changes in governments mean new laws. In the year 2013, exclusion of Estate and Gift taxes has
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