Bush tax cut extension

The tax cuts enacted during the Bush administration are set to expire.

Party lines are clear on part of the issue: Most Republicans want to permanently extend all the tax cuts enacted during George W. Bush’s presidency, nearly $3 trillion worth over the next decade. Democratic leaders want to let the cuts for the wealthiest Americans expire.

The Democrats want to extend them for everyone else, but perhaps only temporarily, out of concern for the rising red ink. That’s where Democratic lawmakers are struggling to find agreement.

Passing only a temporary extension would open majority Democrats to claims they are planning middle class tax hikes in the future — after the extension expires. Making any of the tax cuts permanent could increase complaints about a national debt that already exceeds $13 trillion.

Chairman of the Federal Reserve Ben Bernanke has come out to support the continuation of the tax cuts, saying it’s a means of stimulus for the economy.

On the other hand, the House speaker, Nancy Pelosi, told reporters Thursday she is adamantly against continuing the tax cuts, which expire at year’s end, for those making more than $250,000. “My stance is that the Bush-era tax cuts contributed to the deficit, did not create any jobs, and that they should be repealed,” said Pelosi, a California Democrat.

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Posted on July 22, 2010, in Newspaper & Journal Articles, Politics & The Economy, Taxes and tagged , , , , , , , , , . Bookmark the permalink. Leave a comment.

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