Friday, August 27, 2010

Republican Support for Tax Cuts...The Fairy Tale

Mark Fiore, political cartoonist of the San Francisco Chronicle, has illustrated what a Fairy Tale the Republicans tell :
The Republicans are all singing in unison that we need to "fix the economy" by growing jobs through tax cuts. It's a complete myth about keeping tax cuts in order to create jobs and fix the economy.  What happened since 2001 when tax rates were lowered?  In just 6 years we were in two major wars costing billions of dollars per month, a banking crisis, a mortgage melt-down, a growing national deficit, and the worse unemployment in 30 years.

What is the cost (increase in the National Debt) of these tax cuts?  Try $678 billion for 2011 and about $3.1 trillion in the next 10 years...unpaid for unless you want to cut social programs, Medicare and Social Security, military spending, assistance for natural disasters, infrastructure repairs and construction, the Space Program, salaries of all government workers, etc. The Pew Economic Policy Group has done a thorough fiscal analysis of the effects of the Bush Tax cuts here:

As one recent posting from Think Progress put it: "Extending just the cuts for the wealthiest two percent of Americans will cost $830 billion over ten years. As Center for American Progress Associate Director for Tax Policy Michael Linden wrote, 'to put that figure in perspective, $830 billion is enough to pay for all veterans’ hospitals, doctors, and the rest of the Veteran’s Affairs health system, plus the United States Coast Guard, plus the Food and Drug Administration, plus the operation and maintenance of every single national park for the entire 10-year period — with more than $100 billion left over.' "

President Obama says keep the tax cuts for individuals making less than $200,000 a year and for couples making less than $250,000. According to CBS Evening News article: "If the tax cuts do expire, the top rate for business owners will increase from 35 percent to 39.6 percent. For a business that brings in about $400,000 a year, that's about $12,000 more in taxes and for a business with income of $2.5 million, taxes would go up about $108,000." 

The Republican Party is proposing an Economic Plan that gives billions of dollars to the wealthiest 2% of America while making the American Middle Class and the Poor suffer.  Indeed, who will continue to pay for these wars with such tax cuts for the very rich....the working class who have been fighting the war all along with their bodies and lives. 

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