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How Do Expiring Tax Cuts Affect You?

Updated on May 6, 2015

Recap on Bush Tax Cuts

During the Bush administration a set of tax cuts for the middle class and the wealthy were passed. Up until the end of the Bush administration, the Republicans were looking for ways of making them permanent.

Wit these tax cuts expiring; tax cuts "for the wealthy" would affect about 2-3 percent of Americans, this has been agreed upon by both parties.

By allowing these tax cuts to continue, it will continue to increase our "deficit". If taxes are cut, spending has to come from somewhere. How do the GOP propose to pay for them?

Do we continue to let them run the course they've been doing since the Bush Administration passed them and worry about paying for them later?

Allowing the tax cuts to expire would reduce the deficit by at least 30%. Allowing them to continue, unpaid, would add 3.2 trillion dollars to the deficit.

"Just a small lie", Mitch?
"Just a small lie", Mitch? | Source

Bi-partasinship- Wealthy Still Get Tax Cuts

Senate Democrat, Dick Durbin has said that the wealthy will still get tax cuts, just not the extensive ones that they received under the Bush Administration. The millionaire will still get a tax cut of $6,300, which would be comparable to a middle-class tax cut, percentage wise. Senate Republican, Mitch McConnell wants the millionaires to receive a $100,000 tax cut.

It's Already a Bill---so It's Not About Deficits--it's About Raising Taxes

Under the Bush Administration, the bill was passed with a 10 year limit. Why?

  • If the bill was extended past 10 years it would be required by law to be funded.
  • If they passed the bill and continued their control, in 10 years they could make it permanent. They lost control and now want to obstruct the passage of the "new" plan until after the midterms so that they can hopefully gain control and make it permanent.
  • Mitch McConnell and Republicans are pushing for a bill to decrease spending by cutting Finance Committee Spending. The only items that can be cut in the Finance Committee; Social Security and Medicare.

How will this affect you?

  • If the wealthy continue with their tax breaks, the deficit will increase by $3.2 Trillion.
  • Social Security and Medicare will suffer.
  • Big Business will continue to get richer, interest rates will have to increase and small business owners will have a harder time getting loans.

Once again, the diminishing middle class will pay for the brunt of this Republican bill.

THE SPIN:

It's not about tax cuts, it's about raising taxes . Since it is only the middle class tax cuts that are being allowed to continue, it is clear that the Republicans are protecting the wealthy.

On Sunday's Meet the Press, John Boehner finally agreed that it would be in the best interest of the American people to extend their tax cuts, even if the wealthy cuts weren't. Monday morning, Mitch McConnell, No. 2 ranking Republican, Minority Whip- Eric Cantor began hitting the airwaves to counter John Boehner's comments by saying "it's about raising taxes". Even Chuck Grassley, top Republican on the Senate Finance Committee has said, "we have to stick by what we've said."

Lobbyist Working on Gop

The United States biggest companies are spending millions on lobbyists to block the expiration of tax cuts on the wealthy. The GOP are pushing the spin that by cutting the wealth's tax breaks, it will stall the economic recovery. Big business will have to stop hiring.

The GOP needs to answer these questions:

  • The wealthy have had their tax cuts since well before the economy fell, why didn't they continue hiring to help stabilize the economy?
  • Since the country is now slowly recovering, why aren't the wealthy hiring more?
  • If the wealthy banks were given so much money during the stimulus, why haven't they given more loans to small businesses so they can get back to work and create jobs to strengthen the economy?

Do you support the expiration of tax cuts for the wealthy?

See results

Americans Support the Obama Plan

The latest polls show that President Obama's plan for the expiration of the Bush tax cuts for the wealthy is a good thing, with 51% of them supporting it.

Comments

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  • colonial82 profile image

    colonial82 7 years ago from Ohio

    Thank you for the hub, part of me just says let them all expire. The GOP have been yelling "deficit" all the time and if they really wanted to cut the deficit, then they would let this expire. And no, I don't buy the argument it would be raising taxes since it is only a bill expiring. Heck, if Bush was fiscally responsible, he would have had Congress vote and never passed this unfunded debt maker 10 years ago.

    Have a great day.

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