Should Tax Cuts be Extended
Should the Current Tax Rate Be Extended
The current tax rate does not seem to be a problem. It seems that the issue is whether or not there needs to be a change in the current tax rate for individuals. In order to answer this questions we really need to redefine what an individual means. In or society some of the richest people in the world already do not pay as much tax as a percentage of their income as someone making below $100,.000. This is because they can afford the best help in filing their taxes and finding the tax loopholes.
How Taxes Affect the Middleclass
If you are an individual making between $70,000 and $100,000 per year with no dependents you basically get no tax breaks at all. You pay a greater percentage of your income for taxes than any other group and get less for you tax dollars than any other group. Your tax dollars are use for schools when have never had children. Our tax system really stinks for people making a decent wage but do not qualify to use many of the services that tax payers pay for. I just got through watching figures on CNN regarding this issue. For example if the current taxes are allowed to expire, someone making approximately $70.000 your taxes will increase about $1900 per year about $7 per day. We really do not need to raise taxes on this group of people because while $1900 is not a lot of money, it is the equivalent to one or two month house payments for someone per year.
How Taxes Affect the Rich
While the rich in our country, those making of $500,000, pay lots of taxes, the affect of this is not the same. If you make $500,000 per year, your house payment may be a lot more than $1900, but you have more than enough money to pay your house payment. While no one wants to see their taxes raised, if you make this kind of money you will certainly be okay. For one thing if your basic taxes are raised you will find a way to reduce your tax base by donating to charities or finding tax shelters to reduce your taxable income. If someone is barely making enough to pay their monthly bills they are certainly not able to find ways to reduce their taxes.
Should the Tax Be Extended
In my previous paragraphs I explained how I see taxes affecting those in America. Now the question is should the current tax rates stay in place for all individuals. In my opinion those making over $500,000 should keep their taxes the same. For those making over $500,000 the tax rate should stay the same for all income less than $500,000 but increase for all income over this amount. In this economy I think that it would be mistake to increase the tax rate on those making over $500,000 because we don't want these individuals incomes to fall because until more jobs are created these are the individuals that can still afford to buy the products and services that are for sale.