Bush Tax Cuts and unemployment are a red herring

Ok, let me see if I can explain my understanding of the effect of extending the Bush tax cuts for the wealthiest Americans.

First, these tax cuts have little to do with small business. Only 2% of those affected by the tax cuts are small business owners. These are people who have cottage industries who probably don't make an AGI of $250,000.00. Even if they did, they can always increase expenditures by either buying more equipment with accelerated depreciation or hire more employees to offset. To suggest that these individual tax breaks, if allowed to expire will affect employment is a flat out lie. These taxes are on PERSONAL income, not corporate tax rates. In other words, a hedge fund manager who makes an AGI of $10,000,000.00 of PERSONAL income, will pay roughly 3% more in taxes that they pay now if the tax breaks are allowed to sunset. The people most affected are those who over the last 8 years have seen their incomes rise by nearly 100%. Those making less than $250K have seen their incomes nearly flat line. To tell me that those in the higher income brackets cannot afford the slightly higher taxes is laughable.

Personal income taxes on the uber wealthy have no effect on US unemployment. It is hardly likely they buy at WalMart or Sears for that matter. One Congressman has shown the average tax increase is roughly $60-80K, which is enough to buy, say a cheap Mercedes or diamond jewelry or some other high end item. How does this trickle down to the average worker? It doesn't. What we are talking about is an additional $700B deficit to allow the wealthy to maintain their current lifestyle. Who ends up paying the debt and debt service on this $700B? We do and our children and grandchildren. Basically, the rest of us subsidize the tax breaks for the wealthy. That hardly seems fair, ethical or moral.

Again, let me say this. This is PERSONAL income, not corporate taxes. I would suspect that those making more than $250,000.00 probably have the opportunity to negotiate a higher compensation package to offset the higher taxes. I mean a simple 3% increase in compensation annually will keep them neutral.

As I have stated before, if Mr. Obama lays down on this issue I can guarantee he will lose my vote for 2012.