Thursday, October 11, 2012
The Tax Side of the Fiscal Cliff
This article outlines the figures for the possible upcoming tax increases nicknamed taxmageddon. if nothing is done by congress come January, nearly all American citizens will be faced with significant tax increases. What do you think is going to be the outcome? will/should congress find a way to not have such a large increase in taxes this year?
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If congress were to do nothing and simply welcome these tax increases it would have an adverse effect on the American public. Congress needs to look closely at the proposed fiscal year budget and determine where exactly to make cuts so that taxes don't have to increase on such an extreme level. If money was transfered from military spending to public welfare instead it may be acceptable to implement higher taxes for the bottom 1/5 who would in turn be receiving higher government funded benefits. I think the worst proposal so far in regards to government spending was when Romney said that he would grow the number of submarines the U.S. military has. This seemed like the stupidest plan to me since I never hear anything about submarines being used whatsoever. If things like this aren't cut from the budget in order to help combat the tax increase I will be very unhappy.
ReplyDeleteIncreasing taxes on 9 out of 10 Americans as this article proposes will happen does not seem very fair on the surface. People can argue that cutting spending in many places will be a much better plan to help boost our economy. However, I would argue that when choosing what programs to cut, some people could be very negatively effected and their lives could change drastically. More so than if they were simply taxed more. No American truly wants to see their annual taxes increase, however, with the state that our economy is currently in, it seems as if there may not be any other answer at this time.
ReplyDeleteI agree with Brandon. "Increasing taxes would hurt everyone, poor, middle class and rich." But after the recession, there isn't a easy way out for America. Federal revenue has still not returned to the level of 2007. Raising taxes would raise the revenue by about $500 billion. Hopefully, America's economy is strong enough to tolerate such tax increase.
ReplyDeleteIn my opinion, Congress needs to find a solution before the old tax laws expire and we all face tax increases. As the article mentions, for low-income families there will be a tax increase working out to be $8 a week. For some people that is the difference between eating and not eating for a day or affording to take the bus into work for the week. We are still in a recession and people can't afford another financial burden. Increasing taxes mean people have less money in their pocket to consumer, meaning our economy is going to have an even slower recovery. Congress needs to act together and act quickly, because if these tax issues are not resolves Americans will start to question what Congress is doing.
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