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« Back to articles from category "Business Management"

The following article was published in our article directory on December 17, 2010.
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U.S. Tax Policy Only Looks Good

Article Category: Business Management

Author Name: Amanda xzh

The Bush administration's tax cuts expire at the end. Obama is for the government and both houses of Congress to extend tax cuts around the national canvassing. Polls show the American people a high degree of support for this policy is expected when the short-term tax cuts through Congress without suspense.

Local time on December 16, the House of Representatives will vote for final vote. The day before, the Senate 81 votes in favor, 19 votes against the results of the first pass. As Obama described it, it all just to help the unemployed. But all such descriptions as better?

Hidden one: anger, "hatred of the rich who"

Do not think that tax bill in the Senate overwhelmingly passed, there is no opposition voice. The situation now is that Republicans control the House majority, Democrats control the Senate majority. The Bush tax cuts benefit the Republican Party during the administration, naturally want to continue, but the Democratic Party's "hatred of the rich" mentality, has been a tax cut bill to extend the biggest obstacle.

Democratic lawmakers have said that the reason why the Democratic Party, led by Obama change of attitude, supported the extension of tax cut is mainly based on the decline of middle-class salvation. This is true, but the more accurate statement is that for the salvation of the middle class votes. To save people "from bad to worse," Obama is the Democratic Party, the core task at present.

However, against the proposal by a past, there is a risk. Democratic members of the most difficult to accept the "King terms" are for the rich (annual income of $ 250,000 or more) are also tax cuts. Many Democrats blame Obama Matai Wu off. Although the exchange is to allow Obama Republicans to support his proposal would "unemployment relief bill" to extend 13 months, while a one-year tax cut social security taxes, but the split within the Democratic Party has been looming.

In fact, the "hatred of the rich who" is not only the Democratic Party, a small political parties, trade unions and the hatred of the rich people are opposed to psychological heavier tax cuts for the rich, the rich take the initiative unless the donated funds, or that there may be in terms of after the change. Analysts believe that the Republican tax cuts for the rich is even behind in laying the groundwork for the tax cuts permanent, then you can modify the tax cuts through the ground, forcing the Democratic Party again compromise.

Hidden two: the deficit inflated

Tax cut bill passed the second largest risks is that the rapid expansion of the U.S. budget deficit. If both houses agreed to continue tax cuts, the next 10 years will be added in the U.S. budget deficit 858 billion U.S. dollars, the 2009 has reached 1.29 trillion U.S. dollars in the fiscal deficit to a new high. U.S. Congressional Budget Office estimated that if tax cuts are not extended, this year's deficit will be reduced to 1 trillion U.S. dollars, because they do not implement tax cuts this year, the government can save $ 374,100,000,000, next year can still save money $ 422,900,000,000 . Once the extension of tax cuts, not only to reduce the state treasury, the Ministry of Finance but also in additional subsidies for the budget next year. Some opponents said that the next 10 years, the U.S. budget deficit could reach 4 trillion.

Economists believe that the U.S. deficit problem is serious, may bear the weight of tax cuts. But some independent analysts said that while the deficit is a serious problem, but the U.S. economy much-needed short-term stimulus, which is the tax cuts bipartisan majority support, and unprecedented public's sake. Tax cuts next year is expected to boost U.S. economic growth by one percentage point. Both Obama and Treasury Secretary Timothy Geithner said that while the Democratic Party, a compromise, but tax cuts for the middle class and the U.S. economy "win-win" results and urged party members to vote held as soon as possible through this program.

Three risks: credit rating does not guarantee

International credit rating agency Moody's on December 13 that if the tax cuts approved by Congress, the company may cut the U.S. credit rating. The company's second round of the Fed's policy of quantitative easing and tax cuts that the White House who fears that the government sets the same high-debt, not only not to raise taxes, tax cuts are still under political pressure, is not conducive to the stability of U.S. Treasury bonds. Earlier this month, U.S. Treasury prices fell sharply, bond yields rose to 6 months to high, an indication of U.S. concerns about the level of debt is increasing, the purpose of tax cut is likely after the United States through the AAA long-term sovereign debt rating cut .

Obama made last week to the Republican tax cut compromise, will be at the end of the failure of the current personal income tax, capital gains tax and corporate dividends tax extended to 2012. Meanwhile, unemployment insurance benefits will be extended for one year, next year will also reduce the payroll tax by two percentage points.

About the Author: I am a editor, http://www.hardware-wholesale.com provides metal bending brake,toaster ovens convection, welcome to visit!

Keywords: metal bending brake,toaster ovens convection,dirt devil hepa,

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