If Bush Tax Cuts Expire: Will They Affect Those Making $250K Or Less

By Stephanie Robins on July 30, 2010, 8:19 am Posted in Finance News

With the tax cuts that President Bush put into law possibly coming to an end in 2011, there is a big chance that the economy could suffer even more. The tax cuts that President Bush put into motion was intended to bring tax relief to the middle class and went by the old conservative mantra that they high earners would be the ones who carry our tax burden. Now with the tax cuts set to expire and the word that President Obama does not plan on extending them, there could be a big uncertainty and uproar amongst American taxpayers.

Households Making $250,000 Or Less Will Have A Higher Tax Burden

The Bush Tax Cuts were intended to lessen the burden on the middle class. This was sort of a play on President Reagan’s ‘trickle down economy’ policy back in the 1980′s. The idea was that the high earners pay higher taxes which in turn help the tier below them. President Bush looked at it as the middle class holding up both ends of the spectrum and thus they were the ones that needed the most relief. The expiring Bush tax cuts could mean that President Obama could go back to the old Democratic policy of putting the burden back on the middle class. This could spell doom for the economy as the burden could fall on the middle class and lower class.

 

If The Tax Cuts Expire, What Can President Obama Do To Prevent Another Collapse

The Stimulus legislation was actually something that the Bush Administration put into effect and was also implemented by President Obama. The Recovery Act that Obama signed has done its due course and the economy is slowly but surely coming back. While there is still some international resentment, on the home front things seem to be getting better. If the Bush tax cuts do go by the wayside, don’t be surprised if the country does not see some sort of another stimulus payment to taxpayers like was done before.

Related posts:

1. Bush Tax Cuts: Democrats Now Willing To Consider Compromise
2. Small Business: Bush Tax Cuts Uncertain, Owners Remain On Fence
3. Bush Tax Cuts: Millionaires Send Letter To Obma “Let Tax Cuts Expire”
4. Bush Tax Cuts: Are Favoring Democrats Up For Reelection
5. Unemployment Extension: We Need Jobs–Not Tax Hikes