Background:
There is not much controversy if Obama should extend the Bush taxes or not, if any. Most people and economists believe that not extending these taxes in our current economy might cause it to crash again. The economist as well as the two political parties, though, cannot agree if they should be extended to the wealthy, mainly those who make $250,000/yr. or more.
Democrats usually favor of higher taxes and Republicans usually favor of lower taxes. Many things need to be taken into consideration when you debate the tax policy: how easily will the public be able to pay the taxes, if it would benefit the country more in the long-run to keep them low, or to raise them, and how are we going to pay off the National Debt, as we are running a budget deficit. The budget deficit is at an all-time high since WWII. Bush put a 10-year tax cut into place and December 31, 2010 they will expire. Obama is thinking about keeping the Bush tax cut, except for those in the highest tax brackets.
Enacted under former President George W. Bush in 2001 and 2003, the measure gave the most relief to those with the highest incomes.
Motion: THW extend the Bush tax cuts for the lower and middle class.
Pro
1. We are just coming out of a recession, the people cannot afford to pay higher taxes and that might send the economy into a double-dip recession.
2. GDP is expected to increase exponentially with the current tax cuts from the people who fall into the lower tax brackets. If we raise those taxes, GDP will fall majorly and we will wind up with an even bigger budget deficit.
3. Taxing the rich will help very much, and since many rich people save, their lives will not be affected as if we were to tax the middle class and poor people.
Con
1. It is not fair to increase taxes for just the rich. You could run an case of inequality.
2. Keeping the taxes at the current level will only make the budget deficit larger each year.
3. The letter Barrow signed acknowledges the cuts have helped people in the two highest income brackets - 2 percent to 3 percent of taxpayers - the most.
But it also says they are responsible for 25 percent of national consumer spending.
4. The economy cannot afford tax cuts to continued, we are already cutting taxes using borrowed money.
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