NEW YORK (CNNMoney.com) - President Obama is meeting on Tuesday morning with House and Senate leaders of both parties to begin to negotiate the terms of extending the Bush tax cuts. The expectations are low that they will reach any quick agreement.
At the very least, both parties want to ensure that the tax cuts are preserved for lower- and middle-income families. But that's about the only thing they agree on at the moment.
See how much more you'd pay if the tax cuts expire, at CNNMoney.com:
Honetly – Let them expire. The peanuts we in the middle class get is well worth the trade off of having millionaires and billionaires paying closer to their share again.
How sad that Obama says "This is the first time that we have gotten together since I took office" when talking about grid lock with the republicans.
Those who support extending the tax cuts note that if the cuts expire and the economy suffers as a result, the deficit will get worse because the government will have to borrow more.
But hey, if the foreigners are lending, the Democrats are borrowing. It's more fun to build fast trains now and let Americans in 2030 or 2040 figure out how to pay it back. They can figure it out while they are zooming across Ohio at 200 mph.
We should raise EVERYBODIES taxes to immediately bring the federal budget back into balance. But EVERYBODY should be paying taxes to do this. NO EXEMPTIONS FOR ANYBODY. Only THEN will everybody feel the pain of what out of control federal government spending does to us, our economy and our childrens future.
Democrats were to chicken sh@t to do anything prior to the election and now its a last minute deal. If the President wants to compromise on extending the current rates to all Americans the next few years great otherwise paying the higher rate isn't going to bother me. I will spend less like most Amerincans but that is what I have been doing in my own business the last 9 months anyway so whats the difference.
Let's be honest and call these what they are: potential tax INCREASES!! When a person is paying X% in income tax and will be asked to pay X% + Y% it is called a TAX INCREASE regardless of whose name is associated with the current tax rate. Having clarified that for those of you who have an IQ two points above a turnip now we can address the next topic which is when taxes are INCREASED people purchase less, businesses must eliminate a job or two because their revenue has decreased, and so on. Anybody who have EVER taken a college Economics class (and passed!!) knows this!! Therefore to INCREASE taxes on ANYBODY when we are in the worst economic market since the early 70's is incredibly stupid!! When the economy recovers THEN let's debate increasing the tax rates and looking at revenue needed versus tax revenue. However, only a FOOL would condone increasing tax rates on ANYBODY during this economic decline!! Wake up and smell the coffee and take an Economics class before you spew your thoughts that will only CONFIRM your lack of knowledge and understanding..........
Naturally the economic engine of this country are the middle class .... how many middle class people actually have the stones to start and maintain a business? Most employers are rich, so lets ensure that they won't create jobs.... that way we can all work for the government... just like in the good old USSR!
The question is. Do you want to raise taxes on anyone at this time of economic difficulty?
At the very least, both parties want to ensure that the tax cuts are preserved for lower- and middle-income families.
As to their wealthy benefactors: SCREW THEM. The gravy train should come to a screeching halt on this one. If they can't agree on this then I'm willing to have my tax-cuts end AS WELL.
The difference between the two proposals:
Obama: he wants to extend the Bush tax cuts for middle class Americans but let the tax cuts expire for people making over $250,000. The cost to the Treasury: 3.1 trillion over the next ten years.
Republicans: they want to extend the Bush tax cuts for everyone, including people making over $250,000. The cost to the Treasury: 3.8 trillion over the next ten years.
By comparison, the health care bill will result in a saving of more than 100 billion over the first ten years, and over 1 trillion in the second decade, according to CBO projection. The reason: unlike the tax cuts, the government actually raises revenues to pay for the spending, and the revenues exceed the expenditures.