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The following article was published in our article directory on December 28, 2010.
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Tax Bill is American Middle-Class Families Major Victory

Article Category: Business Management

Author Name: xia zihui

U.S. House of Representatives, "burning the midnight oil" to 277 votes to 148 votes to pass a total of about 858 billion U.S. dollars in tax cuts. The next day, President Obama signed the motion for the bill so that it has the force of law.

Obama on the bill was signed before Christmas, was very pleased at the signing ceremony he said: "I do not want to see the New Year in 2011, the American people for the average family received $ 3,000 tax bill to worry about . The tax cut bill is a major United States victory in middle-class families. "

Known as "the most comprehensive 10-year tax bill" a piece of inside and outside the United States Government commended the sound. Former President Bill Clinton even behind the bill, which would help create jobs and economic recovery, is under current conditions the results of the two parties to reach the best compromise. U.S. Treasury secretary, said: "Act only on economic growth and employment, good for the majority of workers and the middle class and want to increase investment, expand production and business owners is a good thing."

U.S. economists generally believe that this tax cut is equivalent to "second round of economic stimulus," not only will be working-class tax cuts, the rich will reduce the estate tax rate, companies also received an unexpected purchase of fruit new equipment will have a significant tax breaks.

Under the bill, originally due later this year by former President Bush in office when it introduced the popular tax cuts will be postponed for two years; the end of November this year, has expired, the relief bill for long-term unemployed will be extended for 13 months; Americans will be 6.2% payroll tax to 4.2%. Annual salary of $ 50,000 a person, for example, a year that he can save $ 1,000 down; annual salary of 10 million people, thus can save $ 2,000. Across the United States, the average family $ 1,000 a year to less spending.

But the opposition is very strong, especially the Democratic Party, some people change their mind about Obama, and Republicans reached a "compromise" exception dissatisfaction that take the principled position it is to do "exchange of interests."

Many Democrats opposed the tax cuts benefit the wealthy class, the rich think that this is a "generous." "Tax cuts will make matters worse the financial position of the United States, and to account for only about 2% of the U.S. population, the rich class tax cuts and concessions on the estate tax is also contrary to Obama and Democratic members of the electorate in this year's mid-term elections commitments. "A Democrat on their own micro-Bo the case said. It is reported that the estate tax bill will be the starting point set at $ 5,000,000, the tax rate is 35%. Basis of this estimate, in 2010 the United States may have only 3,500 people will pay estate duty, the U.S. government's estate tax revenue will reduce the 25 billion U.S. dollars.

General of the tax relief, the next two years, the U.S. government will be only a small income tax nearly 9,000 billion U.S. dollars! This is why many Democrats Barack Obama and the Republican tax cut agreement reached very unhappy reasons.

In this regard, Obama's explanation is that middle-class families during the economic recession in the United States be affected the most, but the middle class is the largest group of American society, so he changed his mind running in favor of extending the Bush administration's tax cuts. "There will be more money into the household consumption plan, and help companies achieve growth, which is what we in the new year to stimulate demand and promote employment and enhance the way the U.S. economy. To make compromises in order to be faced with taxes the increased burden the American people,solve the real problem first. We have two years after the time, two years, we can and should be fully discussed. "Obama said.

Obama's chief economic adviser, White House National Economic Council, Lawrence Summers had also said that a compromise will help strengthen business and consumer confidence, to avoid the U.S. economy back into recession.

As the House Democratic leader Steny Hoyer said: "Maybe no one here likes the bill, but we should think about whether this is a little better than doing nothing? Some economic experts believe that a favorable economic recovery, I hope they are right. "

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