Let the tax cuts expire for those making over $250k

by Ben Hoffman

The total deficit for fiscal year 2009 (Bush’s final fiscal year) was 1.4 TRILLION DOLLARS. The deficit for Obama’s first fiscal year is expected to decline to 1.17 TRILLION DOLLARS, which is a rediculous amount of money. We’re paying some 1/2 trillion dollars a year just on interest on the federal debt, which is now almost 13 TRILLION DOLLARS. Something needs to be done.

With unemployment hovering at almost 10%, any cuts in domestic spending will result in additional job loss. The stimulus passed last year boosted GDP by 2.1-2.7% and created 2.7 million jobs. Economists believe unemployment would be 11% without the stimulus.

Obama has proposed extending the Bush tax cuts for those making under $250,000 and letting it expire for the wealthy. That would provide an additional $217 billion in revenues and would have little to no adverse affect on the economy. The wealthy benefited the most from the Bush tax cuts and they are now sitting on cash not helping the recovery. Letting their tax cuts expire will give them incentive to invest in business and hire more people since that would reduce their taxable income and would in effect, stimulate the economy.

There should also be another stimulus bill for our infrastructure — especially transportation including high-speed rail. The U.S. is lagging behind almost every other developed nation in the world. We’re stuck with outdated airlines that are inconvenient, uncomfortable, and often not on time. It’s time to modernize our transportation system and invest in America. The two Bush wars have cost some 3 TRILLION DOLLARS. You never hear right-wingers complain about all that money that has bankrupted our country but they hate investing in our infrastructure. It makes you wonder why they hate our country so much.

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