Economy And Unemployment: Reps. Say Tax Policy Dragging Economy

By Victor Hatley on September 5, 2010, 2:23 pm Posted in Finance News

The Democrats have been divided about the Bush era tax cuts and whether or not to extend them. And while the majority of the Republicans are for the extension of the tax cuts, there are (albeit very few) against it. The Republicans are saying that this issue has made many businesses forgo hiring, and expansion projects…but one has to wonder about Citigroup opening 12,000 jobs in China over the next three years.

Joining In On The Call

The National Association of Manufacturers joined the supporters of the extended tax cuts saying in a report “Uncertainty about looming tax hikes has stunted employment growth and until Main Street begins to hire, the unemployment rate will remain unacceptably high.” While Senator Boehner called the administration to “help end the uncertainty for small businesses.” The tax extension would keep the current tax rates on capital gains and dividends.

Democratic Responses

Democrats are quick to point out that these tax cuts have been in place for years and didn’t prevent the current crisis we’re in. Another very strong point that they put forward is that there is a plan in the Senate that would reduce the small business taxes, but the Republicans are blocking it. While there are those that argue that raising taxes during a recession could be fatal to the recovery process, many want only the tax cuts for those making over $250,000 to expire, saving those making less from the expense. This thought gains more support, but is still an ongoing battle.

 

Leaders Back Soon

It remains to be seen as to the fate of this issue, but one thing is assured, if something isn’t done quickly this country could become a third world nation looking for assistance from other countries that we used to help so freely. Our leaders will be back soon, let’s hope they see the same urgency in this cause that we do and will find a bi-partisan solution.

Related posts:

1. Unemployment And The Economy: Bush Era Tax Cuts Divide Democrats
2. Unemployment And Economy: What The Tax Breaks Will And Won’t Do
3. Bush Tax Cuts: Democrats Now Willing To Consider Compromise
4. Small Business: Bush Tax Cuts Uncertain, Owners Remain On Fence
5. Unemployment And The Economy: Show Us The Cuts To Pay For Tax Relief

One Response to “Economy And Unemployment: Reps. Say Tax Policy Dragging Economy”

1. Sam Adams says:

   September 6, 2010 at 3:47 am

   Well…You can’t fault Barry for transparency. It is now transparent to all Americans who are not Kool-Aid drunk that this is nothing more than a gasping attempt to appease voters before the November to Remember. What will be trotted out in the weeks to come wasn’t part of the Lib stimulus plan six months ago. Just another shell game by the Shill in Chief. Yep, this administration is transparent all right….we see right through you.