To Extend, or Not to Extend?

20 09 2010

In a recent poll taken by CNN Money asking what readers think Congress should do about the expiring Bush tax cuts, 49% answered, “Extend them for everybody”, 43% answered, “Don’t extend them for the rich”, and only 7% answered, “Don’t extend any of them”. (At that point, the poll had been answered by 7,664 readers.)

On December 31, the tax cuts imposed by President Bush will be set to expire, and Congress is asking the very same question: What do we do about it, if anything?

If the first choice was to be selected and the tax cuts were extended for everyone, this could prevent the possibility of a “double-dip recession”. Many feel that the economy is still too weak to let taxes go up. Extending the tax cuts could boost the ever influential confidence of consumers, which would increase economic activity and foster the strengthening of the economy.

The second choice is to extend tax cuts for only the 97% of Americans that do not exceed an income of $200,000 filing single or $250,000 filing jointly. It is estimated that about $700 billion will be generated by imposing the Obama administration’s tax increase on these wealthy 3%.

The least popular option is to not extend the tax cuts for anyone. As mentioned in a previous post, the United States is operating on a budget deficit. Extending the tax cut for anyone would only increase that deficit, and many feel the U.S. cannot afford that.

What do you think Congress should do?

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7 11 2010
Reaching Compromise on Possible Tax Cut Extension « Moolah Talks

[…] wrote a post about the dilemma Congress has been facing regarding extending the Bush tax cuts (See To Extend, or Not to Extend). Now that the mid-term elections are over, and Republicans have control of the House of […]

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