The Coming Tax War: How Letting the Bush Tax Cuts Expire Could End the Economic Crisis

[babylonsister]

http://www.truth-out.org/the-coming-tax-war-how-letting-bush-tax-cuts-expire-could-end-economic-crisis62154

The Coming Tax War: How Letting the Bush Tax Cuts Expire Could End the Economic Crisis

Friday 13 August 2010

by: Anthony DiMaggio, t r u t h o u t | Op-Ed


The Democrats appear to be sitting on a golden ticket when it comes to ending the economic crisis. Furthermore, the solution to this country's economic woes wouldn't require them to do a thing, short of allowing the Bush tax cuts to expire (as required by law) and appropriating the money for renewed stimulus and in aiding states to cover their budget deficits. Whether the party has the courage to resist Republican and conservative dogmas framing tax cuts as the solution to the crisis remains to be seen.

snip//

In short, the Bush tax cuts are a non-starter when it comes to pulling the economy out of recession. Corporate executives, rather, have taken the money and held it in reserve instead of investing it in future growth strategies. The business class systematically refused to invest this money (in addition to the money loaned out through the TARP program), as reporting spotlighted following the 2008 economic collapse.(19) Why the American taxpayer should quietly sit by and extend further tax cuts to the rich is a question that has not been addressed by the Republican Party, in addition to much of the Democratic Party. The commitment to tax cuts is more a reflection of pro-business dogmas than sound economic reasoning.

snip//

There is one way to get business and financial elites to reinvest in the economy - take the money from them. This policy option is, after all, the law, considering that the Bush administration explicitly set up their tax cuts to expire by the end of the 2000s. The Bush tax cuts will only be allowed to continue if the Democratic Party (or a split government following the midterm elections) agrees to extend them. We have a real chance over the next year to take a stand against corporate corruption and greed. Americans can demand that the Bush era tax cuts for the rich come to an end, or they can sit by and watch while Republicans (and conservative Democrats) push for their extension. The latter path will spell disaster for America's working class, while the rich will be left laughing all the way to the bank.

[notadmblnd]

1. Those taking 10s of millions of dollars in salaries need to pay at least half of their incomes in

taxes. Just my opinion.

[Orrex]

5. How can you expect them to squeak by on $5M per year?

They have mansions and yachts and assorted bling.

How can you be so heartless?

[Demeter]

2. I don't Know About "Ending" the Economic Crisis

But it could start the healing process, both economically and politically.

[BrklynLiberal]

3. It sure would be a BIG step in the right direction..

Are there people who join DU JUST to unrec every thread they can????????????

I think unrec should no longer be anonymous.

[babylonsister]

4. Amazing, isn't it. There are definitely rethugs lying in wait

around here, their unrec finger at the ready. Otherwise, who on DU would think canceling tax cuts for the rich is a bad thing?

[tanyev]

6. Kick to read later.

[XanaDUer]

7. K & R'd

nt.

[txlibdem]

8. There is no "coming" tax war

The right wing has been at war with the poor and middle class for 30 years. The tax war dropped a nuke on the middle class in 2001 and 2003 when the Rethuglicans were in charge.

Face the facts. The rich have been fighting a class war against us for decades. When are we going to realize that and begin to fight back!