Cas for Senate: Bush Tax Cuts

With less than three weeks to go before the Bush Tax Cuts expire, Congress has a short time to act before the Amercan people see the largest physical tax increase in history. After last Saturday's Senate vote to kill the bill passed by Congress to only increase taxes for the wealthy, they are back to square-one on Capitol Hill.

The Bush Tax Cuts refer to the Economic Growth and Tax Relief Reconciliation Act of 2001 and the Jobs and Growth Tax Relief Reconciliation Act of 2003 put in place under the Bush Administation. The original controversy over these acts were who the tax cuts would benefit. Now due to expire Janurary 1, 2011, even President Obama admits that these tax cuts have benefitted the non-wealthy.

If the tax cuts are not extended in the Lame Duck Sessions of the House and Senate, it will mean a tax increase of roughly $3000 (per year) for the average American working-class family starting on Janurary 1st, two days before the new 112th United States Congress begins.

Under the current compromise between Obama and the Republicans, Bush's across-the-board tax cuts would remain in effect for two more years and salary tax would be cut by 2%. There would be a new 35% inheritance tax, and feredral unemployment insurance would be renewed for 13 months.

A few Republicans are still opposed to the compromise, claiming that we need a permanent solution to the economy so that businesses would be able to plan further ahead. Though true, by not taking action to extend the tax cuts now would result in lose of jobs and another blow to the econony. They must also remember that not even President Bush back in 2001 and 2003 could get these tax cuts passed on a permanent basis.