Unemployment And The Economy: Bush Tax Cuts Now On The TableBy Jeffrey Paulsen on September 14, 2010, 4:35 pm Posted in Finance News
There is much talk about the Bush tax cuts circulating and why it is important to repeal them. The White House is continually issuing statements that it is necessary to repeal the cuts and make the “rich” pay their fair share. However, the implications of these tax cuts extend much farther than punishing the rich. By repealing the tax cuts the administration is risking plunging the economy into worse shape.
How Do The Bush Tax Cuts Affect Unemployment Figures And The Economy
Many small business owners invest the business money as a way to provide working capital for their company. The dividend paid on these investments pay for employee salaries and other necessities. When you diminish the amount of available capital a business has, that business will have to make additional cut backs. More often than not this will result in a cut in employees.
When you raise taxes on investments to these ridiculously high levels you must ask yourself what will the incentive be to invest? The answer is sad, but there will be no incentive for the average person, only the super wealthy that can afford to loose more than 40% of their investments to the government. For your average person these high taxes will diminish their retirement accounts and the market will be adversely affected.
Should The Tax Cuts Remain In Place? What About The Deficit
The tax cuts need to remain in place for now, it is that simple. Businesses cannot afford to loose any more income, retirement accounts cannot risk another big hit. The only real way to approach the problem with the deficit is to stop spending money.
The government must stop spending money that it does not have and cut back on spending with the money that it does have. If a business or an individual ran their finances like the government they would have been in court for fraud and filing for bankruptcy. It is time for the government to live within their means without bankrupting the public.