Washington (CNNMoney.com) - Washington's big debate – whether or not to extend the Bush-era tax cuts – heated up Wednesday, and appeared headed for a showdown when Congress returns from its summer break next month.
Top Democrats will tackle new tax legislation in September when they return from summer break, according to a spokesman for Senate Majority Leader Harry Reid, D-Nev.
Democrats want to try to extend the middle-class tax cuts passed back in 2001 and 2003 during the George W. Bush administration. But they want to let cuts lapse – essentially hiking taxes – for individuals making more than $200,000 and families making $250,000 annually.
Republicans accused Democrats of trying to quash the economic recovery.
Letting the Bush tax cuts expire will increase taxes for ALL Americans. This will then be followed by an Obama VAT tax to pay for Obamacare, which already includes significant tax increases.
The US economy is DOA with Obama and the dems running the government.
According to republicans there is no economic recovery and the stimulus has failed, so how can raising taxes on the undertaxed top wealth and power elites possibly quash the economic recovery?
These tax cuts for the wealthy were supposed to add more jobs...trickle down economics or some such junk. Well, they have been in effect since 2001, and we can all see just how successfull they have been in adding jobs! Plus they have added billions to our national debt. Why should the children of middle income parents have to pay for tax breaks for the very wealthy for many years to come???
Talk about failed policies!!! Repeal the Bush tax cuts for the wealthy!!!
This is going to be the most talked about item going into the midterm elections I feel. This is simply going to come down to which tax cuts are extended and which are not because economically the cuts can't stay as they are and politically Obama and the Dems CAN NOT be seen as the party that raises taxes on the lower and middle class...so expect the GOP to start back with the "Obama is raising EVERYONES taxes" when in reality the wealthiest Americans are going to start paying their fair share its as simple as that
So the Republicans really DON'T want to balance the budget then. Fiscal responsibility is another urban legend of the party of no. When was the last time a Republican administration ran a balanced budget? Nixon?
Tax perks for rich guys have been tried since Reagan's time, and they have failed to boost the economy. The rich sit on their wealth; they don't let it trickle down. The money they get is made off the work of middle class and lower class folks, and it properly belongs in the public coffers, where it can do some good for the country.
It should pay for all the things rich people use to make themselves richer, like government contracts, roads, education, police and fire and military protection. It should also pay for unemployment and welfare, which keep the rich safe from the rioting which would kill rich people and their easy money if working people were forced to the wall.
The rich have gotten a free ride for far too long. Tax them back to the Stone Age.
How have the Democratic economic advisors fared so far? They have been consistently wrong. But that doesn't matter. The only thing the Democrats are doing now is to try and placate Main Street voters after having done nothing for them in 2 years. Democrats in congress care a whole lot more about November's elections than they do about Main Street jobs. Extend the Bush tax cuts. Put people back to work!
These tax-cuts for the wealthy are being paid for with borrowed money!
I find it hypocritical that these republicans always gripe about "paying as we go" until it's their turn (& their "special interests") who are asked to pay!
The concept of "trickle-down economics" equates to nothing more than the little guy getting whizzed on...
Republicans Are So Fiscally Responsible, That They'd Campaign On A Platform To Add More Debt To The National Debt. The Same Fiscal Responsibility Mind You That Had Them Whining About Health Care Reform, And Obstructing 2 Unemployment Extensions This Year. Nobody ("ESPECIALLY HypocriCNN!") Seems To Call Them Out On Such Blatant Hypocrisy!
Wow. Hasn't the GOP blocked or gutted several jobs bills? Seems like a strange thing to accuse the Dems of "trying to quash the economic recovery" since it seems they have been doing exactly that – harming our country in a perverse attemt to harm the Obama Presidency.
Didn't McCain say that the original tax cuts for the wealthy "bothered his conscience" when originally enacted? Haven't those very tax cuts added over $3 trillion to our national debt?
Will someone please tell Obama that it is the wealthy who invest and create jobs.
'Republicans accused Democrats of trying to quash the economic recovery.'
CBO and Tax Policy Center disagrees with the GOPers.
In which should we believe?
Let the Bush cuts expire. They have added $3 trillion to the national debt, and along with his other unfunded programs: Iraq war, his unfunded drug program and his unfunded bank bailouts, it is time to bring sanity back to Washington DC. Along with Bush's nicknames, (Tsar of torture, Wizard of Wiretap, the Rajah of rendition. etc.) we need to add: Baron of Bank Bailouts.
This is great news. Tax cuts for the wealthy may create jobs in China or India but they don't help those of us here in America. The economic recession started in 2007 and collapsed in 2008. The tax cuts for the wealthy were in full effect at that time and had been for years. In addition to job losses, the deficit exploded between 2001 and 2008. Clearly, it was not good for the economy or our deficit.
Having this in front of the public this fall will give a clear indication of which party is for helping the middle class and which party is for helping only the wealthy.
The GOP complains about the deficit and then wants to spend 2 trillion dollars on tax cuts for the rich. WTF? How stupid do they think we are?
Funny Dems blame Bush tax cuts for the economy... although for the first 6 years after they passed we were rocking....
4 years after they win congress it's all crap... yet they have no blame... funny?
November will be funny too
I am a retired senior and earn considerably less than 200k, and my taxes WILL increase if the Obama tax hike goes in to effect on Jan 1. Thats because taxes on dividend income will return to the level they were before the Bush tax cuts of 2002.
When will this administration stop LYING?
Let the Bush tax cuts expire for the top 2%. We've seen evidence that trickle down economics does not produce jobs. These republiKKKlans and their wealthy corporate CEOs want cheap labor. That's why all of our manufacturing jobs are in India, China and Mexico.
Simple economics to the slow folks on the left. The people that make over 200k are usually business owners and pay the salaries for low middle and upper class individuals. If you cut the money they take in at the end of the day that leaves less money to pay salaries and benefits. So if the tax and spend socialist party thinks that this is going to help the economy they truly need there heads examined. If they want to let those cuts expire they will quash this economy. Now before any of the crazies respond please look up the percentage of tax dollars that the wealthy pay(You can even check your left wing sites). Is 35% not enough while 50% of all people pay no taxes. If you want a welfare state which Barry wants move to Europe and join the rest of your socialist comrades...
Come on people, lets get serious. What reall difference does it make? He's already in the White House. If we found out today that he was born in another country, by the time we burned through all the red tape to impeach him, it would be time for another election.
If the tax cuts were that great for the economy then ...WHERE ARE THE JOBS! The tax cuts happened in 2001 so why did we start loosing millions of jobs at a time with the tax cuts in place? The only thing the tax cuts accomplished was to make the very wealthy wealthier. There was NO re-investment in THIS country whats up with that.
At best, I'm a middle class citizen who has not benefited from the economic recovery. There is no trickle down effect from the tax cuts given to the wealthiest of our nation. It's all about greed... them that have... want to keep it. The statistics, facts and figures are all over the internet... but then, you can just go ahead and believe the conservatives who say it'll be bad to incresase taxes on the rich. You'll just never see a dime of it. The average guy doesn't have the tax shelters the wealthy do. I'm not envious of those who have a larger income then me, just pissed off the % of what comes out of my income is larger then theirs.
Only 3% of small business owners fit in this high-income bracket. Once again the Republicans are just plain lying.
CBO proved, I repeat P-R-O-V-E-D, that the 'tax cuts' were the major element among those responsible for the current crisis...
And the GOP still want for them to exist?
'Republicans accused Democrats of trying to quash the economic recovery.'
It looks like republican does not want any competitor to ditch this economy.
It was their goal to water loo this economy.
Rich people with all that tax cut did creat the job but not in this country.
May be in the so called emerging market for cheap labor.