Sunday, November 28, 2010

Let the bush tax cuts expire. Extend unemployment benefits

It is time to let the Bush era tax cuts expire. Simple as that. No middle class tax cut, no tax cut for anyone. Going in, it would have been nice to see a middle class tax cut for those families making $100,000 or less. But the "starve-the-government" republicans are against any revenue raising possibility. The existing tax cuts are so skewed to the rich that they are not good for anyone but the rich. They also increase income inequality in the US.

Continuing the cuts would waste money on people who do not need the money. The rich would invest the money further lower interest rates and not spend it. More investment is not need in a 0% interest rate climate. Or worse, if they do spend it, it would be on imported, luxury goods. What is currently needed: investment opportunities from increased consumption and demand in the short run.

Meanwhile, the same money could be used to support additional unemployment benefits. Or educational grants. Job training.

The best position is to veto any extension of the tax cut bill. A good compromise is to offset the tax cuts by closing some tax loopholes on corporate off shore revenues, farm subsidies and the military.

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