There is a healthy debate in D.C., and frankly, most of the country, that has just come to a close. It is concerning the Bush era tax cuts. There are many different ways to examine what has just happened with these cuts. Today, I want to examine it in a way that has not been on Fox News, or even CNN for that matter.
The GOP pretty much shut down the government until President Obama agreed to extend the Bush tax cuts for millionaires and billionaires. Much like a small child who holds his breath until he turns blue in the face because he wants a new toy, the “Party of the People” held up unemployment insurance for over 2 million people until the democrats agreed to extend tax cuts for the rich. The republicans felt that it was more important for the wealthiest people in the country to get an average of $85,000 MORE per year, than for unemployed people to receive a $300.00 check so that they could pay their bills and eat dinner. Why? Because “the wealthy create jobs” and “they will spend that money which will boost the economy,” and “it will hurt small businesses if we raise taxes.” Lets think about this for a second:
First of all, less than 5% of small businesses make enough money to where they would see their taxes increase. The GOP would like us to think that it will hurt all small businesses, but this is simply false.
“The wealthy create jobs”- although this is partially true, it is not entirely true. Here are a couple of thoughts that you don’t hear from Rush Limbaugh. First of all, we are only looking at increasing the wealthiest people’s taxes by 3.5%. The average “rich guy” would receive about $85,000/year by extending the Bush tax cuts. Think about this in respect to your current employer. If someone handed your boss $85,000, would they hire 4 people for $20,000/year today? I bet the answer is overwhelmingly, NO. Employers do not hire based on cash in hand. They hire based on customer demand. Why would they bring in 4 new people if they don’t have a need for them? It would not make sense, and frankly, it would be a bad move for the company.
If employers receive $85,000/year, it is more than likely that the money would go in the CEO’s pocket, and possibly as bonuses to the already wealthy “hire ups.” Which brings me to my next point. There are plenty of high paid managers, salesman, accountants, etc. that are simply employees of a company. Although,these employees will also receive these tax cuts if they are paid over $200k (single) or $250k (married), conservatives fail to mention that employees do not create jobs! There is no reason for them to pay less than their fair share. The country is broke, and we have a lot of people who need help right now. Taxes are government income, income that can fund social security, food stamp programs, unemployment insurance, health care, etc. We are at a point in our history where we need those who are able to help, to help those who are in need. We must get passed partisan politics and do what is right.
Who else would receive these tax cuts?
We will examine that part next time.
And that is just something to think about…