Yesterday the Daily Caller posted an article about President Obama’s not wanting to extend the ‘Bush tax cuts’ for the rich because it would cost too much.  The President argues that with the deficit as high as it is right now, we can’t afford those tax cuts.  First of all, we are not talking about tax cuts for anyone–we are talking about keeping the tax rates where they are at the present time. 

The article points out:

“Obama’s argument that extending all of the tax relief would cost too much is too disingenuous to let stand.  Of the $3.6 trillion, 10-year tax hike at issue (Obama’s figures), the president proposes to prevent tax hikes representing 83 percent of the total, while saying that the other 17 percent is too expensive to forgo.  If one or the other were too expensive, it would be the 83 percent in the middle-class tax relief provisions, not the 17 percent representing the balance.”

I hope the Republicans stand strong on extending all of the tax rates as they are.  Remember what happened when George Bush compromised with the Democrats and raised taxes on luxury items in late 1990?  As luxury items stopped selling, the people making them lost their jobs.  That caused a ripple in the economy that led to a minor recession.  Tax policies do have an impact on the economy.  The Laffer Curve shows that cutting taxes generates more government revenue; cutting taxes also encourages more economic growth.  Hopefully, the ‘Bush tax cuts’ for everyone will be extended for everyone at least for a few years.