The Bush Tax Cuts

The end of the year is approaching and the buzz about what is going to become of the Bush administration tax cuts is getting louder. The simplest view is also the most recognized. We either extend them or we don’t. It gets a little stickier from there. The president wants congress to extend them for some, but not for the wealthy. Will something be done? At this point that possibility is unclear. The estate tax was alleviated this year. Everyone thought congress would eventually fix that. The federal inheritance taxes have remained unaddressed for the last year. Why would this be any different?

What is clear is this: Obama wants no part in the extension of lower taxes for individuals and households raking in more income. The commonly accepted belief is among Republicans (and a number of Democrats) is that raising taxes on anyone in a recession is a bad move.