Obama proposes to call off tax cuts for the wealthy
Posted on 11. Sep, 2010 by Leon Kennedy in Politics
One of the issues at the center of debates as we get closer to Congressional midterm elections, will be what to do about the Bush-era tax cuts; whether or not to extend them, and if to extend them, how so?
Although the Republican party’s history of siding with the wealthy on the issue of tax cuts for the rich, President Obama is proposing to hang on to Bush’s tax cuts for most, while dropping them for the richest 2 percent.
Another part of this plan, which the President seems to be avoiding referring to specifically as a “stimulus”, would be to give a number of breaks and write-offs to businesses for the purpose of encouraging both investment and hiring.
Republicans, and not surprisingly very few Democrats, are objecting to the President’s plan on the grounds that raising taxes, even if it’s only among the most wealthy in America, is a bad plan during a recession.
However, neutral parties such as the nonpartisan Tax Policy Center also have their issues with Obama’s plan. “It may have some small impact along the margins, but firms don’t hire based on tax breaks; they hire based on demand,” said Roberton Williams, a senior fellow from the above mentioned center.
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