Barack Obama’s watered down attempt to extend the Bush tax cuts may have some in Washington anticipating a boon to the American economy, however, a deeper look at the picture it presents ends up revealing an image unlikely to please anyone.
Amid the continuing debate about the proposed extension of the Bush tax cuts remain two salient, but largely overlooked points: First, this debate is not about tax cuts, but rather about tax increases; and second, the wider implications presented by a tax agreement that does little to alleviate the business communities’ concerns over tax stability and free cash flow. Within these and other concerns, Members of Congress on both ends of the ideological spectrum have found cause for concern.
House and Senate Democrats have objected to the “low” increase in estate tax rates, under current proposals set to jump to 35% on estates valued over $5 million. Many within the Democratic party seek a restoration of rates in excess of half an estate’s value exceeding $1 million.
Democrats further object to the maintenance of a tax regime they see as beneficial to the wealthy. Apparently the fact that many small business owners incorporate their taxable business income into their personal tax returns has little sway on a Democratic party more concerned with demagoguery and class warfare than in fostering an economic and fiscal climate conducive to growth.
Full article at David Horowitz's NewsRealBlog