Tax Cuts Revisited on Election Day

Today the polls open for the midterm election. These elections will not only restructure the House and the Senate, but the way that states tax their residents as well. The fact that the country’s taxes are going to change per these newly elected officials agendas has taken a backseat this campaign season to the massive unemployment rate.

Still income tax reform has made it into the public eye. But the Bush tax cuts are being shelved until after the midterms for the most part. This is rather odd all things considered. Fiscal Responsibility is needed- and soon. The catch 22 comes in a rather large dollar amount. Letting these tax cuts expire will bring in an extra $260 million a year for the next ten years, making the deficit “sustainable”.  Simplification, reduction, and reform of the credits and subsidies which make up our monster tax code would make the national debt only 76% of the gross domestic product in 2020 instead of 90%, according to Martin Feldstein in the Wall Street Journal. This reduction in tax expenditures was taken into deep consideration while Feldstein was the chief economic advisor to President Reagan in 1986. Overall, cuts in government spending are where changes should be made.