Posted on 05/11/2010 4:48:45 PM PDT by GOP_Lady
This is not the time for a tax increase. But unless Congress acts, under current law the existing income tax rates will rise sharply at the beginning of next year. Congress should vote now to extend all of the current tax rates for two years, including the tax rates on dividends, interest and capital gains. Limiting the resulting tax-rate cuts to two years would reduce the projected future fiscal deficits. The sooner Congress acts, the stronger our prospects for continued economic recovery.
A tax increase next year could easily derail the current fragile expansion. The economic upturn since last summer has been nurtured by Federal Reserve credit like the mortgage purchase program and by the fiscal incentives such as the tax credits for car buyers and first-time home buyers that are now coming to an end.
Eighty percent of the latest quarterly GDP increase consisted of a rise in consumer spending that was the result of an unrepeatable sharp drop in the saving rate. Without that decline in the saving rate, the first-quarter annual GDP growth rate would have been less than 1%. A 2011 tax increase that reduces economic incentives and household spending would raise the risk of a new economic downturn.
(Excerpt) Read more at online.wsj.com ...
Obummer and the Rats will not do this as they want to crush the American economy.
Or is it time for trillions in new spending but we have it.
It's agenda at work, not financial mending.
The media (including many conservative pundits) are all laboring under the false delusion that the Soetoro regime wants whats best for the economy and the country.
BINGO...
They’ll just keep blaming bush.
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