Bush Era Tax Cuts Put Us on this Financial Road – Really?


There has been much finger pointing at President Bush about his tax cuts putting us on this financial road we are presently on.  Such an easy thing to do…pointing fingers at someone or one particular party.

I think, and this is just me, that the road we are going down now was started before Bush and before Reagan.  With the exception of a few years, 1960 ($.3B surplus) and 1969 ($3.2B surplus), our government has operated on a spend now, pay later model, operating in a deficit mode. (Clinton did not create a surplus, he just borrowed from other programs, thereby still creating a deficit spending model).  Now, the tax cuts during Bush undoubtedly assisted in deepening our deficit, but to put the blame directly on Bush, I think, is a little simplistic.  I would venture a guess that the beginnings of this road we are now on, economically, began in the 1930’s.  I’ll let all of you figure that one out.

In regards to the end of the tax cuts, as has been stated, those above $250,000.00 income are going to see the affect.  Not those below.  I have some questions though:

  1. How is a 3%-4% bump in taxes (what is projected for 2011) for those above $250,000.00, going to affect small business’s (S Corp).  Are they going to reinvest profits to avoid the taxes?  If so, no taxes would be paid on that part of the profit, but neither would the small business be able to ‘bank’ that money for future risk taking.  There are many small businesses that operate above the $250K threshold that would be hurt by the end of the tax breaks.
  2. Are our politicians on both sides of the aisle going to pay this tax increase also?  I’m pretty sure we can all say that isn’t going to happen to any great degree.  Both party’s politicians do everything they can to pay as little tax as possible.  Just look at Sen. Kerry avoiding MA taxes by registering his yacht in RI. (Well, trying to anyway…he got caught.)
  3. How does our present administration justify putting this country into an almost $1T dollar, 10 year deficit (min number of years), and yet say they need to raise the tax rates on the ‘rich’?  And it is said that Bush put us on this path?  What path do people think we are on now?  Sorry folks, that dog don’t hunt.

There will always be different takes on what is happening with the economy, from both sides of the aisle, and from every spectrum of the electorate, but putting the blame on one person, one party, just doesn’t fly.  One may have contributed more than the other at any one given time, but every politician is to blame.

I’ve attached a link below this paragraph to an article from a writer in the UK that states his point of view of what needs to be happen with our economy.  Yes, for those more liberal, you will bristle because it comes from the American Thinker.  But if you read this article without bias, and consider what Steve McCann is saying, he’s got some very good points.  Pay particular attention to his comments about taxes.

http://www.americanthinker.com/2010/08/the_economy_must_change.html

Also, I ran across a discussion, on bargaineering.com written by Jim Wang, about the end of the Bush era tax cuts that was very interesting to read.  And, it’s not just one sided.  Take the time to read it and come to your own decision.  It brings out points that I don’t think too many people consider, when talking about tax cuts.  Here is the link.

http://www.bargaineering.com/articles/bush-era-income-tax-cuts.html

Ok, I’ve said my piece.  Bring it on!!!

Advertisements
This entry was posted in General Thoughts. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s