There are a lot of talks about the President Bush Era tax cuts which will be expiring at the end of this year if no action is taken by the Congress. Since the Congressional elections are fast approaching, the tax cut to be extended or let it die will be decided after the November 02, 2010 elections. The Democrats controlled Congress wanted to let it die this year but some of their members are being spooked into saying it should be extended. In it People earning 200k or a couple making 250k will be hit and all the tax rates of the Pre Bush tax cut era will be restored.
Many economists are now saying that the recovery is so fragile that the tax cuts should be extended but there are some who say that it should be extended only for those making 250k or less and above that the “Rich” should be taxed at the higher rate. Is it fair or not that is not the question? But can we afford it or not that is the one. I believe that instead of deciding if we should extend it or let it expire. We should scrap all of it and start with a new one in which people making 500k or less should be taxed at the Bush Tax era levels and above that we should have new tax structures so that we can balance the budget. But here I should emphasize that more tax revenues coming as a result of it should not be spent on another of the run of the mill programs but should be specifically mandated to reduce our national debt.