September 21, 2010-- It looks like President Obama's promise to raise taxes on the rich, while preserving tax relief for the poor and middle classes, has found a way to present itself right before Election Day. The Democrats have increasingly voiced their idea of extending President Bush's 2001 and 2003 legislation on tax relief for the middle class; however, the new legislation would also call for a rise in tax rates for the wealthiest Americans. The proposal seemed to make headway immediately after House Republican John Boehner commented on the proposal, stating that he may support President Obama's plan to keep the tax cuts for the middle class but not the wealthy if he had no other option. The CBSNews article, "Senate Republicans Vow No Tax Hike on Rich," published Tuesday, September 14th, discusses the opposition of the legislation by Senate GOP leaders. Both Republican and Democratic Senate leaders are using the approaching expiration of President Bush's tax cuts as battleground for determining who will control Congress after the elections.
The Bush-era tax cuts reduced marginal income tax rates at every level, as well as provided a wide range of income tax breaks for education, families with children, and married couples. Taxes in capital gains and dividends also decreased, and the federal estate tax was repealed for a short period. Republicans are fighting to extend all the tax cuts enacted under President Bush, at least temporarily. If nothing is done to extend these tax cuts come January, families at every level may see more taxes being withheld from their paychecks.
While the Democrats jumped on Representative Boehner's remark as an opportunity to gain a Republican supporter, the comment did not seem to create any confusion among Republican leaders. Boehner made it clear that he supports extending the full range of tax cuts enacted under President Bush, including those tax cuts once offered to individuals of all incomes who may have been married or with children, or those given on investments and large estates. Senator Jon Kyl of Arizona (R) responded immediately on behalf of Boehner's remarks stating that the Republicans won't back down. 'Just before the recess we had a meeting and we discussed this, and every Republican was absolutely supportive of the idea that there shouldn't be any increases in taxes.'
Republicans are furious that Washington officials would propose a tax hike as a quick remedy in the recession. The tax hike would specifically target individuals making over $200,000 and couples making over $250,000, the top three percent of taxpayers, not to mention the small businesses that would fall victim to the tax hike. According to congressional analysts, the government would pay $4 trillion over the next decade if the tax cuts enacted under President Bush were renewed, and the top three percent of taxpayers account for $700 billion of this total. Therein lies the Democrats argument: tax the wealthy and the deficit will drop.
But even some Democrats are uncertain of any proposal that raises federal taxes during such a struggling and sensitive economic state. A few have noted the importance of keeping the money in private hands as critical to recovery. It is often the wealthy taxpayers who are responsible for starting businesses and thus creating jobs in this economy after all. Preserving tax relief for wealthy individuals encourages them and their businesses to create more jobs.
The Democrats are hoping to use this fight as a campaign platform. They want to portray an image of their party as one that defends the middle class. As the Democrats become increasingly worried about the upcoming elections, it is evident that they are going to take full advantage of this time and debate over President Bush's tax cuts to win over those voters who are frustrated with the situation in the economy.
Contact your congressman or representative today to let them know how you feel about the Democrats newest proposal within finance. Taxing the wealthy at higher rates is no solution to America's troubles during a recession. Congress must realize that American citizens are angry over the wasteful government programs being funded by their tax dollars, especially when the economy is still as fragile as ever. Maybe Congress will finally learn its lesson and decide that keeping the money in private hands could be beneficial after all. Visit ASA's "Resources" page to look up your local representative by clicking here. Get your word out there!
Please email info@americanseniors.org or call 1-800-951-0017 to speak with an ASA representative about any questions or comments you may have regarding the press release.
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*This release was issued by the American Seniors Association. For additional questions and concerns contact ASA at 3700 Mansell Road, Suite 220, Alpharetta, GA 30022.
