May 16, 2010
You’ve most likely heard about the Bush tax cuts that are set to expire at the end of this year. These tax cuts were signed into law by George W. Bush during his first term as President. With the events of 911 plus Bush bamboozling us into his ‘pre-presidency decided’ war with Iraq, he knew he couldn’t get his tax cuts approved for the long haul. So he agreed to let them expire at the end of 2010 in hopes the Republicans would rule Congress at that time and get them extended. But a Democrat is in the White House, and for the time being, Democrats control Congress. So the tax cuts are up in the air.
Back around the third week of April the Center for Tax Justice released their study on the effects of the tax cuts versus President Obama’s version. Very interesting stuff. Most certainly the Republicans don’t want this info highly publicized, and the main stream news media has been very accommodating. The bottom line is the “Republican Approach to Extending the Bush Tax Cuts Would Result in $54,600 Break for Richest 1% and Higher Taxes for the Middle Class, Compared to Obama’s Approach”.
The following chart shows the average differences nation wide of the two approaches.
The CTJ even goes as far as to show the breakdown for each state. Making Texas my home for the past 23 years, but being a native of Georgia, I’ve included the charts from each of those states in this post. You can follow the link at the bottom to check your state.
It will be interesting to see how the common man reacts to the sunset process as it winds its way through Congress. Will Republican supporters stand up for the Republicans tax bill even though it is going to cost them more money, and will the Democratic supporters just let the Democrats give us a white-wash bill that really does nothing for the commoners? My guess is it will go the way of Health Care Reform and financial reform — and Obama will be forced to sign the bill just to give the Democrats a “win”.
Never underestimate the difficulty of changing false beliefs [with] facts.
Economist Henry Rosovsky