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Tax Cut Dilemma
15 years ago
So, for those of you who haven't heard, there's a fight going on between the Democrats. Republicans, though in the minority, will not pass tax cuts for the middle class (or anything else) without passing budget-busting tax cuts for the wealthy. If the tax cuts for the wealthy expired, that money could be used to pay off the debt. If they don't, we'll be trillions of dollars more in the hole. Republicans keep telling us they're concerned about deficits. Then they tell us that taxes are too high.
Do you want low taxes or low deficits? PICK ONE OR THE OTHER. There is no third option. You cannot keep such a low tax rate without continuing to have soaring deficits.
People who follow Reaganomics tend to think that increasing taxes will always ruin the economy, ignoring the fact that during the 1990's we had a booming economy while the government generated a surplus. We didn't start going into debt until the Bush Tax Cuts were passed. There were record deficits at the time when Reagan passed his tax cuts.
So the only options we have left are to either a) pass all the tax cuts or b) let them all expire.
If they pass all the cuts, we'll have a huge debt (that Republicans will blame us for). If we don't, tax rates for the middle class will go up (again they'll blame us for that), unemployment insurance will run out and nothing else will get passed.
So, what next?
Do you want low taxes or low deficits? PICK ONE OR THE OTHER. There is no third option. You cannot keep such a low tax rate without continuing to have soaring deficits.
People who follow Reaganomics tend to think that increasing taxes will always ruin the economy, ignoring the fact that during the 1990's we had a booming economy while the government generated a surplus. We didn't start going into debt until the Bush Tax Cuts were passed. There were record deficits at the time when Reagan passed his tax cuts.
So the only options we have left are to either a) pass all the tax cuts or b) let them all expire.
If they pass all the cuts, we'll have a huge debt (that Republicans will blame us for). If we don't, tax rates for the middle class will go up (again they'll blame us for that), unemployment insurance will run out and nothing else will get passed.
So, what next?
