The Bush tax cuts were a Christmas gift that keeps on giving, even as we speak. If left alone by 2020 the tax cuts will take up 1.6% of the GDP.
So pay no attention to the so called deficit hawks, because if they were really serious about the deficit...we wouldn't be having this conversation.
The lame duck session begins today and it is expected that tax cuts will be the first order of business, that being whether to cancel the tax cuts, extend them for everyone permanently, or extend for a time into the future, or leave them alone and let them die.
What happens if Congress repeals them: simply Congress saves the country 4 trillion dollars.
What happens if Congress extends the tax cuts for everyone permanently: simply, the country and your children and grandchildren will have to shoulder the tab for that 4 trillion dollars, that could have been saved if the tax were repealed.
What happens if Congress temporarily extends the tax cuts into the future: simply, it will make rich people happy and the chances of ever repealing them, thus increasing the deficit even more, will probably never happen. In other words, the gift from Bush will just keep on giving.
The way the cuts are structured 65.5% of the total benefit goes to upper echelons. It's divided in this way.....26.8% to the top 1% and 14.7% to the top 0.1%
Don't like percentages, then look at it this way....for the middle class...these numbers equal a yearly savings of $880 per family....However.....rich people will save $6, 094 each....and the super rich...those making more than $2 million per year in income.....they save annually $339, 483 in savings per the Bush tax cuts.
The poorest and most needy get just $45 from the Bush tax cuts.
$880 is a nice chunk of change for the typical middle class family. However, being able to eliminate 4 trillion dollars from the projected national debt with just one stroke of a pen is much much better for all Americans.
Do this and all of a sudden the GOP/Teabag assault on Medicare and Social Security goes away. A decreasing deficit means the hawks have to find another reason to cut their government down to the nonfunctional size they deem appropriate.
Besides, if you ask the regular middle class guy whether or not he or she would rather have $880 now or their social security intact...I think most people would prefer to have their retirement benefits.
President Obama is on record as wanting to extend the cuts for middle class families. That's the way to go. He is opposed by the GOP which wants to make the tax cuts permanent, never mind the effect on the deficit and government spending.
The Tea Party campaigned to reduce the deficit. It remains to be seen on what side they will come down on when the stuff hits the fan this week in Congress.
Since we all have a dog in this fight, I would suggest giving your congressmen a call or an email, telling him or her, how you want them to vote.