Senate Republicans blocked the middle class tax cut extension passed by the House earlier in the week. There’s a lot of finger pointing by the Democrats who say that the Republicans are holding the middle class hostage. Is that really the case though? If the Democrats know their bill will get shot down by Republicans due to perceived inequality of only providing tax cut extensions for certain income classes, then in reality, it is the Democrats who are holding the middle class hostage for trying to keep pushing a bill which won’t get passed! New legislation starts with the House and moves upwards until it finally hits the President’s desk to vote.
BLAMING GETS US NOWHERE
Blaming Republicans for holding the middle class hostage is like blaming a teacher for a lazy student who is failing class. It is the responsibility of the teacher to grade fairly, however, it is a bigger responsibility for the student to turn in their best work, come to class, show respect for his or her classmates, and work hard to get a good grade. The teacher should always be available to help the student improve, as well as teach the student about the importance of fairness. The teacher / student relationship is that of a partnership. Without collaboration, there is no success.
Why Democrats think it’s OK to let the budget deficit balloon by $3 trillion over 10 years by extending tax cuts for the middle class, but not for individuals making over $200,000 seems strange. Allowing those making over $200,000 to equally participate in a tax cut extension during a nascent recovery costs “just” $700 billion. Hence, why are the middle class more special than others? No one group should be classified as more special than another group.
Everything is rational, which means that deep down, American people, including the President and Democrats believe that discrimination based on income is wrong. As a result, there is absolutely no doubt in my mind that tax rates will stay at current levels in 2011 and beyond for ALL Americans. Let the Republicans therefore agree to extend unemployment benefits another 52 weeks for those who’ve already had 99 weeks of benefits. 141 weeks of unemployment benefits is still much less than the 260 weeks of unemployment benefits suggested!
Readers, since Democrats in the House realize that their tax cut extension bill will get rejected by the Senate, do you believe that Democrats are in fact the ones who are keeping the middle class hostage? Do you believe taxes will increase or stay the same in 2011?
UPDATE: Thank you President Obama and Tim Geithner for reading this post and realizing it’s important to compromise!President Obama and Congressional Republicans hammered home a two-year tax cut extension and extension of unemployment benefits for 13 months on Monday, Dec 6th! We all should be proud of the compromise our leaders have made!
Tax Savings Recommendation
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Updated for 2017 and beyond. Income taxes are set to come down under President Trump. As a result, those who contributed to their Roth IRA or Roth 401k and planned on retiring in 2017 – 2021 had wrong tax expectations.