Bust Tax Cuts Expiry and Permanent Extension to Middle Class America

October 18, 2010

By Padmini Arhant

The Congress members were debating on the contentious Bush tax cuts for the top two percent wealthiest scheduled to expire in 2011,

While introducing the permanent tax cuts for the middle class and small businesses, the two most vulnerable groups in the economy with the skyrocketing national debt.

The hard to detect ‘Who is Who’ in the contemporary national politics, there is one thing that is crystal clear, the real voices for democracy representing the people are being shut out by the myriad of influences from all directions predominantly focused on their personal agenda.

This particular bill deserves the republic attention for it concerns them and their future with the multi-trillion dollars liability transferred to the average citizens and their dependents expanding over several decades.

The arguments are all about whether or not to let the infamous Bush tax cuts to the top 2% wealthiest in the society expire and allow permanent tax cuts to individuals or the combined income up to $250,000.

Those earning above $250,000 would be subject to the applicable progressive tax structure i.e.

After the permanent tax cut on the initial $250,000, the residual or remaining income to be taxed appropriately under the new law.

Although it is a viable proposal the political factions are deviating from the course doing harm than any good to the interests they represent.

As such legislative process has increasingly become a ceremonial event than a result oriented action marginalizing the purpose behind every bill.

If the legislators were serious then they would direct their attention to the content and proceed with the bill introduced by the House Congress members – Reps. Raul Grijalva, Alan Grayson and Mary Jo Kilroy to protect the middle class and the small businesses alike.

It appears from the real power brokers’ bizarre approach that they are for it as much as they are against it leaving the public hoodwinked like with every other legislation experienced by the suffering average Americans.

The Republican Senators not surprisingly favor the Bush tax cuts extension perhaps indefinitely if possible and at the same time vehemently oppose the middle class permanent tax cuts.

What does it mean is the Republican members’ empathy for the super-rich living an extravagant lifestyle is a priority over the national deficit.

The Bush tax cuts to the affluent 2 percent is expected to add $836 billion to the explosive deficit not to mention the middle class and the small businesses punished with the tax liability for a prolonged period.

Contrarily, the Republican members explanation for their opposition to middle class permanent tax cuts is the rhetoric – ‘out-of-control’ spending contributing to the ballooning national deficit.

Now on the Democrats part – the Senate majority leader Max Baucus bill is aimed at permanent tax cuts to the middle class along with estate tax relief forever at 2009 levels on inheritances worth over $1 million dollars in addition to maintaining a historically lower 20% flat rate on dividends and capital gains.

The Baucus package is estimated to cost approximately $2 trillion still half of the Republican minority leader Mitch McConnell’s plan.

Nevertheless, the generosity to the wealthiest through perennial estate tax exemption would raise the national deficit by a phenomenal $250 billion dollars. Again the debt shared among the middle class and the small businesses to ease the pain on the wealthy.

In the House – the Blue Dog Democrats – the conservative wing of the Democratic party have demanded that the tax cuts be either extended to all – the middle class and the wealthy alike or abandon the concept in its entirety.

Otherwise, a simple and straightforward action has developed into a complex legislative rigmarole.

The only legislators with a sensible and pragmatic solution are the Progressives in the House of Representatives – Congress members Raul Grijalva, Alan Grayson and Mary Jo Kilroy in their bill with permanent tax cuts for the middle class and letting the Bush tax cuts to the wealthy expire offsetting one another without affecting the national deficit unlike the others.

It’s clear from the legislators’ positions that the wealthiest individuals and corporations have superfluous representation in Congress on both sides deeply committed to the rich campaign donors.

Hence, the only hope for the electorates entrusting power to lawmakers are the Progressives with a defined goal to improve the average American lives against all odds and yet they are viciously attacked on the campaign trail with malicious rumors and propaganda.

The majority American electorates are confined to the corporate legislators’ policies elevating rather than alleviating their plight parallel to the vertical national debt.

Therefore, the middle class, the small businesses and the income groups in the $250,000 threshold need to come forward and urge their representatives to vote for the Progressives’ House bill in this matter.

Evidently, the Progressives bill is guaranteed to expedite the economic recovery besides helping to move the nation forward.

Failure to recognize the electorates’ grievances would confirm the incumbents’ misplaced preferences and as the political candidates seeking re-election they are accountable to the voters, the victims in the corporate dominant and U.S. Chamber of Commerce funded campaigns as well as legislations.

With the midterm elections around the corner, the American voters have an awesome responsibility to exercise diligence in choosing their representatives to Washington and the State Capital.

The status quo is largely due to the power entrusted in candidacy fulfilling obligations to their campaign financiers instead of the constituents electing them to the public office.

Please request your Congress members to hold a special session and pass the Progressives House Bill on permanent tax cuts to the middle class effectively benefiting all.

If the Congress is adjourned then the electorate could have them return to deliver on this particular legislation prior to the election. The lost opportunity would exacerbate the usual uphill battle and potentially lead to the legislation demise.

Please act now to secure your economic prospects and save the future generation from the burgeoning financial burden.

Thank you.

Padmini Arhant

Written by Padmini Arhant · Filed Under Economy 

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