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Monday, November 29, 2010

Taxes, Taxes, and More Taxes

This article, if everything the author writes is true, gives an economic view of the current issue of whether to extend the tax cuts. The author outlines the three options that congress has; extend the cuts for everyone, let the cuts expire, or only extend the cut for the lower and middle income earners. In this article the author uses reports of economic analysts to outline the three options. The options are detailed and look at MPC, deficit, and unemployment possible results of the change in policy.
Obama wants to extend the taxes for people who make less than 200,000 and married people making 250,000 dollars a year. It would seem that these strict income numbers don’t cover costs of living in different areas. Surely a person living in Colorado Springs making 200,000 a year is doing quite well for themselves and may not need the tax cuts, but 200,000 in New York or other large cities may need more to have the same lifestyle. This leads me to the idea that this tool to measure an income level may be too small a factor and should include other measurements. My last thought on this is why is there inequality for married couples? Shouldn’t the income for a married couple be 400,000 not 250,000? The government and taxes seems to be a broken system. They tax unequally for married and income level. They give tax breaks for having children, buying homes, and numerous other thing. Just a matter fact to reveal how overly complicated government and taxes have become; taxes are different for a bull versus a steer. The government should step back and look at the tax system they have created and simplify it to an easier more manageable system that everyone can understand. Like the tax that takes the same percentage from everyone, like the one we discussed in class.

“How Congress' tax-cut decision may affect economy”

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