The tax cuts under President Bush are about to expire. From an economics stand point it makes sense to preserve those cuts for the middle class. Give those consumers a chance and they will revive the economy with their spending gathered from those cuts. That same logic doesn't apply to couples making above $250K. They will just save a large part of their tax cuts because they already have enough money to buy what they want when they want.
People sure have short memories! The top tax rate under President Kennedy was 76% and under the Eisenhower years it was 91% . The 2% of American couples who made over $250K during the Clinton presidency did just fine when the president raised taxes to 39%. That tax increase cause the economy to boom with 4% unemployment, 22 million jobs were created with that tax increase. Yet all those Clinton haters want to go on and on about Reagan's supply side economics which they say was started with the tax cuts during Reagan's first years. It was not those cuts that jump started the economy it was the tax increases that he pushed through in 1982 that started the economy to a road of recovery just as the tax increases pushed through by Clinton in 1993 also put the economy into high gear.
The Bush tax cuts were a huge windfall for the wealthy so rather than debate whether to extend those cuts why not just set the rates to those of the Clinton years and give everyone making less than $250K a permanent tax cut. The 2% of Americans should count their blessings! Things could be a lot worse that paying a 39% rate. They could be living under Kennedy or Eisenhower and be paying 76% or 91% of their income to the government.
No one likes to pay taxes but taxes are a way of life. No matter what the top tax rate is no one is going to starve in America. So you 2%ers need to stop complaining and pay the government what it wants or you will be complaining about the bologna sandwich served in your jail cell. I said no one starves in America.
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