R i g h t a r d i a: No compromise on the Bush tax cuts

Friday, August 27, 2010

No compromise on the Bush tax cuts

A growing cadre of Democrats are fearful of wounding conservative Democrats in a tough election year. These "Blue Dog" Democrats are advocating a plan that would permanently extend tax cuts benefiting the middle class while renewing breaks for the wealthy through 2011. This is according to senior Democratic aides said.

Rightardia is inclined to believe that the Democrats are afraid of scaring off some affluent donors and corporations who contribute to Blue Dog Democrats.

We agree with Mario Piperni.com. this is not a compromise, this is a sell out of Democratic middle class principles. The tax cuts should have been rescinded two years ago. The wealthy have been coddled enough.

The Democrats know that the Bush tax cuts were responsible for nearly half of the deficit they inherited. These tax cuts will continue to increase to an unsupportable level if they are not quashed.

A growing number of studies from highly respected institutions and economists have concluded that the negative effect on long-term growth of the increased deficits that the tax cuts are generating.

The tax cuts likely to cancel out — and quite possibly to outweigh — any positive effects on long-term growth from reductions in marginal tax rates and other tax incentives in the 2001 and 2003 tax-cut packages.

Stated simply, the tax cuts are more likely to reduce long-term growth than to increase it.