Financially and politically, it's no brainer -- even though media is hyped by the few. Let the tax cut expire as it was only used to feed the greed in the past and as well as in the future -- further destroying Americans and America.
Furthermore, economically, it does not make much difference even though we could assume that Americans will spend the difference from tax rate.
The tax cut amount in the hands of the people will not make much difference as most of Americans are spending what they need to spend. The tax rate is gradual anyway, so those who would spend all tax cut saving would have spend money anyway with no or very little impact. And higher income group does not spend money just because tax rate impact.
Now the saved banks are destroying America for US Government has to operate with the debt from the Fed Reserve which Americans paid for their fraud and corruption. 50% of US Tax Income is paying for the interest to the Fed Reserve, and it will soon be 100% Tax Income to pay interest to Fed Reserve when interest rate goes up by only a couple of points. This nightmare will be hyperbole as time passes by for all of Americans will be paying for interest to Fed Reserve -- and just to pay interest, tax rate has to be raised. Government can't operate -- so more money is borrowed from the fraudulent Fed Reserve. This vicious and detrimental cycle will take all of Americans and America to death spiral. Not only America, but also All around the globe.
If Bush has let banks to fail, American tax payer of 600 billion could be saving Americans and America. Bush again destroyed America. Americans must act now and save ourselves from destructive and detrimental death spiral -- as well as all around the globe for the same greed is defrauding all.
Quote:
.......... The federal debt has increased by more than 50% since 2006, due to a collapsed economy and the highly controversial decision to bail out the banks. By the end of 2009, the debt was up to $12.3 trillion; but the interest paid on it ($383 billion) was actually less than in 2006 ($406 billion), because interest rates had been pushed to extremely low levels. Interest now eats up nearly half the government’s income tax receipts, which are estimated at $899 billion for FY 2010. Of this, $414 billion will go to interest on the federal debt. If interest rates were to rise just a couple of percentage points, servicing the federal debt would consume over 100% of current income tax receipts, and taxes might have to be doubled." ...............
http://seekingalpha.com/article/237878-whats-really-behind-qe2
THE LAST TIME TAX-CUT EXTENSION WAS DISASTER AS WELL.
This is an old article
http://theboard.blogs.nytimes.com/2008/02/12/about-those-bush-tax-cuts-for-the-rich/
http://online.wsj.com/article/SB10001424052748704312504575618840090383702.html?mod=ITP_pageone_0
US Debt Panel Seeks Greater Support Before Vote: Report| 29 Nov 2010 | 06:05 AM ETThe chairmen of the White House's debt-reduction commission are making changes to their draft proposal in a move to broaden support before Wednesday's vote, The Wall Street Journal reported on Sunday.
Democrat Erskine Bowles and former Republican Sen. Alan Simpson need 14 of the 18 members of the National Commission on Fiscal Responsibility and Reform to support their proposal in order to issue a formal recommendation, the newspaper said.
The recommendation could then be voted on by Congress.
Winning 14 votes appears unlikely, the newspaper said, citing people familiar with the matter.
The details of the changes were not disclosed, but they were designed to incorporate suggestions made by some of the members of the commission, the newspaper said in its electronic edition.
Earlier this month, Bowles and Simpson proposed a series of changes to U.S. spending and tax policy in areas such as Medicare, Social Security, defense spending that would hold down the growth of the federal debt by roughly $3.8 trillion by 2020.
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