While there are lots of rumors circulating it sounds like we may be getting a reasonable compromise to extend all of the tax cuts but only for 2-3 years. The theory presumably being that in a few years that the economy might have recovered to the point that we could look at ending the higher income cuts.
Personally I’ve always thought something along those lines made the most sense. While there are a few people on the right (deficit hawks) or left (tax advocates) that disagree, the broad majority of both parties agree on extending the cuts for those earning less than $ 250k a year.
For those above that income level there are actually 3 groups. Some on the right want to extend them for good, some on the left never wanted them in the first place and then in the middle you have those (like myself) who agree that the deficit requires that we eventually increase tax revenues but that now may not be the best time.
In short my view is that with the deficit we are going to need tax increases in the future and that those in higher income brackets are better able to afford them. But with the economy so weak right now it’s not the best time to tax the very groups that would be in a position to hire people, expand small businesses, etc.
Indeed as some have pointed out, even those events that are seen as symbolic of the excesses of the rich (big parties, vacations, etc) impact the middle and lower classes in terms of people who work these events. Obviously we should not keep taxes low just because of this, but it does go to show that it’s not all black and white.
I do understand that taxes are a touchy issue and that many on both sides would like to see their view prevail. Certainly I’m in the same camp, it’s just that in this case my view seems to be the compromise one we are headed to.
If we’re gonna work together, we need to compromise and this seems like a good start (assuming of course that it actually pans out, which is debatable).
Now having had my say I’ll sit back and let y’all tell me what an idiot I am (I’ve had judges do it, so I’m used to it