Bush Tax Cuts
How do you start a Bush Tax Cuts research paper? Our expert writers suggest like this:
There is currently a fight in Washington over the extension of the Bush Tax Cuts. These cuts were passed in 2001 and are set expire at the end of 2010. This is due to the fact they were detrimental to the federal budget, they were passed via a procedure called reconciliation. This only allows them to be set for ten years. If they are not extended, we will return to the tax rates of the Clinton era.
Bush Tax Cuts Sides
The summary of the two sides arguing over the extension of these tax cuts are as follows:
- The Republicans wish to extend all tax rates permanently at the lower Bush Tax Cut rate.
- The Democrats wish to make all those cuts permanent for any income below two hundred and fifty thousand dollars but allow the rates for all income over two hundred and fifty thousand to return to the 39.5% rate.
When originally passed, they were designed to spur the economy. It is also possible hey were set to expire to force the next president to extend them, thus permanently lowering government revenues. This lower revenue would force budget cuts and achieve the goal of smaller government. The Democrats on the other hand understand the need to have revenue to pay for basic government services and balance the budget.
Tax Cuts and Public Support
The public support is on the side of the democrats in this debate. Since the GOP will filibuster any attempt to extend only part of the tax cuts, the Democrats have bizarrely decided to avoid voting before the election. For some reason, they think not voting will somehow convince the public they are in their side. This is political madness. The voting public needs to see the Democrats fighting for middle class tax cuts and the Republicans fighting to defend Bush's Tax Cuts for the rich.
It is possible they will vote to extend these tax cuts in tis lame duck session after the presidential election. It seems more likely they will punt the issue further down the road by doing a temporary extension of all Bush's Tax Cuts.