REPORT: Expiration Of High-End Bush Tax Cuts Would Have Little Effect On Economic Growth

[DonViejo]

The United States is approaching the so-called “fiscal cliff” at the end of 2012, when a set of policies enacted by the debt deal reached in August 2011 will go into effect. In addition to massive spending cuts, several tax provisions will expire, including the full Bush tax cuts.

Though both the GOP and Democrats agree that the low-end Bush tax cuts, those that give everyone a tax cut but primarily affect the middle class, need to be extended, Republicans have blocked that in order to leverage an extension of the upper-income tax cuts. The logic, Republicans argue, is that not doing so will raise taxes on “job creators” at a time when the economy can least afford it.

An analysis of the fiscal cliff policies by the Economic Policy Institute, however, found that the cost of the Bush tax cuts — and particularly those for high-income earners — far outweigh the benefits:

Read More:
http://thinkprogress.org/economy/2012/09/21/888981/report-expiration-of-high-end-bush-tax-cuts-would-have-little-effect-on-economic-growth/

[Thinkingabout]

1. This could be a good thing for the members of Congress who have signed the Grover Norquist oath.

Allowing the extension of Bush tax cuts to expire would be the easiest way of getting the tax returned to the upper level incomes. Grover will never allow the extension of tax cuts to lower income families and taxes will return to the PreBush tax cuts levels. In other words, this will fall on Grover, his refusal to allow tax increases will result in the extension expiring. Result, Grover you failed after all the money contributed by those who wanted the tax cuts.