The Washington Times reports today that Congressman John Boehner is not going to compromise on leaving the current tax rates in place. The article in the Washington Times refers to the current rates as Bush tax cuts, which I think gives the impression that tax cuts 'for the rich' are coming. That is simply not true. The question is whether or not to leave the current tax rates in place. The 'Bush tax cuts' will expire on January 1, and everyone's taxes will go up--childcare deductions will drop, and tax rates in various income categories will rise. To extend those tax cuts simply means that the tax rates will stay where they are.
One of the problems in our economy right now is uncertainty. Small businesses have no idea what their tax rates or costs of healthcare will be next year. They are reluctant to hire anyone until they have an idea of what their expenses will be. Making the current tax rates permanent would solve that problem. It would be better to further drop tax rates for everyone (google the 'laffer curve' and see what lower taxes does to revenue), but if Congress will not lower tax rates, it would be better to at least keep them where they currently are.
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