tag:blogger.com,1999:blog-7408079476623299004.post6250561022086234627..comments2023-05-07T04:41:28.057-07:00Comments on No Brainer Politics: Our Unsustainable Federal Budget DeficitViking Viewshttp://www.blogger.com/profile/12197723979139702731noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-7408079476623299004.post-36551194411081442612010-12-08T14:42:15.179-08:002010-12-08T14:42:15.179-08:00I agree with President Obama that the Republicans ...I agree with President Obama that the Republicans in Congress unreasonably held him and the Democrats hostage by insisting on extending the Bush tax rate cuts for those households earning more than $250,000, and subsequently in negotiations even to those earning more than $1.0 million, as the price for their cooperation on extending the tax cuts to the middle and lower income classes and several other measures. As I recall, the two year extension on the higher income people would cost an estimated $136 billion plus interest which would be added to the federal budget deficit and our public debt.<br /><br />It does seem hypocritical, given the Republicans' strong concern with reducing spending, the deficit and our debt level. The argument made that not extending these tax cuts for the rich would harm the economy and prospects for small business owners hiring more workers was not very compelling. How many of these rich are small business owners, in fact, and for those that are, would they decide not to hire workers due to a 3% higher income tax rate, if other market conditions and revenue growth prospects for their businesses were attractive? I submit the answers are "not a majority" to the first and "no" to the second. I also am of the view that with the extension for the rich that now looks like it will go ahead, we will see that the rich will not materially increase spending with their slightly higher than otherwise disposable income to boost our economy. Rather, unlike most of the middle class, they will most likely increase their savings and portfolio investments in stocks and bonds.Viking Viewshttps://www.blogger.com/profile/12197723979139702731noreply@blogger.com