Today a talking head made an interesting analogy that all of us can understand. Thing of the temporary tax cuts for the wealthy by the Bush administration as a coupon you get in the mail. It has an expiration date on it. If you try to use that coupon after that date, are you being ripped off by paying the actual price? Of course not. The coupon, as with the tax cuts were a temporary measure, passed by a Republican Congress under Budget Reconciliation. Efforts since then to make them permanent have failed throughout the years. We are talking about the top 2% of the wage earners in this country. If allowed to continue, the cost to the deficit will soon reach 4.4 Trillion dollars. This is from ONE temporary tax break which will sunset January 2011. Temporary tax break. Like the Cash for Clunkers, temporary. Like the tax breaks for purchasing a home or hybrid car, temporary. The Republicans have not complained about those being tax increases have they? How is a temporary tax break expiring a tax increase, or is it that the playing field is being put back in place as it once was. 23 million jobs were created during the Clinton years with the old tax rate. 3 Million jobs have been created since the tax breaks went into effect. The Heritage Foundation claims that keeping the tax breaks will create no new jobs, but will prevent jobs from being lost. They know there is no way to quantify the amount of jobs lost due to allowing the law to expire because the economy is in a shambles as it is. So they throw out bogus numbers.
The reality is this. If, after all my expenses and tax breaks and write offs, I as a business man have a $1 million tax liability, what would I do to limit that liability? Maybe hire 3 or 4 workers and take advantage of those tax breaks? What makes more sense to me? Hiring 4 workers and saving money, or give it all to the government?
I know what I would do.
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