If Congress passes a bill that extends all of the Bush tax cuts what should Obama do?

[Statistical]

[usregimechange]

1. Leave the Dem party then veto it

[golddigger]

2. +1

[dkf]

3. Yeah that is a possibility.

NOT

[Bonhomme Richard]

4. Eliminating the tax cuts for rich will stimulate economy.

I still don't get why the democratic politicians are not screaming that fact.

[4lbs]

6. I always find it hilarious that the Repukes are screaming about the tax cuts expiring.

All that will happen is that the tax rates will return to the levels they were during most of the 1990s.

Gee, businesses and people lived with those rates for 8 years, and didn't have any problem creating 22 million jobs and maintaining a 4.5% unemployment rate.

However, to hear the Repukes screaming about it now, you'd think the day after the tax rates revert back to their original values, it would be financial armageddon.

[Statistical]

9. What I found more "funny" is Republicans always screaming about deficits...

Can't have unemployment insurance extensions - need to worry about the deficit
Can't have expanded social services - need to worry about the deficit
Can't have govt spending - need to worry about the deficit
Can't have a second stimulus - need to worry about the deficit
Can't keep low taxes for the rich - need to worryy....... er wait ... that can't be right....

We need to keep taxes low for the rich. It is more important than the deficit. WTF?

[4lbs]

11. Can't worry about the deficit -- we need to have an unnecessary war in Iraq.

;)

[Bonhomme Richard]

10. The truth is that owners of S Corps and LLC's will put more money into

their businesses if the cut is eliminated in order to decrease their taxable earnings. Fact.

[Statistical]

13. No they won't. That would only make sense if the goal is to minimize taxes.

The goal is to MAXIMIZE after tax income.

If tax rates on marginal income rise 4%. It would be silly to put $1 more into your busines to avoid $0.02 in taxes.

Take hypothetical situation where current business owner has $500K after tax income.

Now after tax hike he/she will pay an extra $1,000 in taxes hence $499,000 income. Now by your logic to avoid $1,000 in taxes they would "put more into the business" well taxes are only rising 4% so to avoid $1,000 in taxes would require $25,000 more into business.

Net net after tax income is $475,000 vs $499,000 by just paying higher rate.

The whole tax vs business thing is a huge red herring.

Business owners will put money into their business if the economic outlook warrants that expenditure regardless of tax rates. If taxes are 99.999999999999% business won't put money into their business unless it makes sense. If taxes are 0.00000000000000000001% business will STILL put money into their business if it makes sense.

[Bonhomme Richard]

16. In reality you are correct. My point is that.......

if there were any incentive at all it would be to put money into the business to reduce tax liability which is the opposite of what the republicans are telling people about s corps. You are right that, in truth, we are talking about a very small difference and increasing their taxes wouldn't change what they would do anyway. What the conservatives are saying is that taking away their tax cut would hurt the economy which is crap and if they were inclined to react at all it would be to put more money into the business.

[Statistical]

17. Agreed. The republicans are wrong.

Businesses will expand business either via hiring, capital expendituee, services, or marketing IF AND ONLY IF demand supports it.

Taxes are ancillary. No smart businessman will let taxes (either increased or decreased) drive business decisions. You spend money to make money.

[bigwillq]

5. Veto

because I think Obama has said several times that he is against extending the Bush tax cuts.

[blondeatlast]

7. I'm happy to do more to help fix the economy; why shouldn't the Koch brothers be too? nt

[BlueDemKev]

8. Veto AND Communicate.....

...EXTENSIVELY about the need to cut taxes only the middle class, but with the deficit so high we cannot afford to continue taxing the wealthy at the lower rates, and they must be restored to what they were during the 1990's.

[tritsofme]

12. Obama has repeatedly declined to issue a veto threat.

So we can assume he would sign it.

[Statistical]

14. Well that would be another poll. This poll is "Should". what "Should" Obama do.

However maybe I will poll that next.

Regardless of what you think Obama "should" do what will he do if presented the bill?

BTW I think you are right. The lack of veto threat is to give him room to sign it. His promise was not to raise taxes for those making <$250K. Signing a bill that extends all tax cuts (even if he doesn't like it) will keep that promise.

[Statistical]

15. interstingly far more people think Obama SHOULD veto it then ACUTALLY think he would/will veto it.

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x9297000