Some people don't seem all too concerned about the upcoming tax cuts expiring. Politics aside, they feel there's a lot of "deficit" talk and allowing the tax cuts to expire would 'settle' that. Well, if we're going that route... Pursuing non-filers and under-payers would also fill that gap in by half each year. Why jack up my taxes when others run away with 350 billion dollars a year in illegal deductions or refusal to file? Or better yet, what about they illegals who work under the table. Legalization aside, why jack up my taxes when these people don't have to pay or abide by the law? Deficits can't be reduced just by increasing taxes in a recession. If anything, claim major economists, increasing taxes will damage the already weak economy.
In the infamous words of the President, "LETS BE CLEAR..."
Let's be clear. This will be a tax increase simply because it increases what you are paying to the federal government year over year. Most of the young people who voted Obama in do not remember what the tax brackets looked like pre-Bush tax cuts. (Please, please take a look for yourself and see that the cuts affected everyone the lower-middle class the most!) So it's pretty easy to insist they are "no big deal". Actually, they are a big deal. For the average $30,000 earning person, they are a HUGE $1,000+ deal. Think about your bills. How close do you cut it each month? Does every little bit really count for you, or could you sacrifice a couple hundred dollars each paycheck and not notice. Would you want to for the supposed greater good of the country even if it puts you in a more financially strained position?
These tax cuts mean a lot to everyone. It's so easy to get caught on a side in this political game. But think about this, what does the upcoming expiration mean for your paycheck in 2011? For my family, it means $157.69 each paycheck. And that? Is not something I can easily "afford" with gas prices going up and food prices increasing rapidly.
What does that mean? It means I stop eating out. *This affects the servers who would receive a tip from me. It means I purchase less and only when it's heavily reduced. *This affects the profit margins and employment of the entire retail sector. It means that I might not use a tax preparer or get a haircut at a salon. *Adversely affecting the service sector. Let's say that 100 million tax payers each lose $150 per paycheck to taxes... At 15 BILLION per paycheck and 390 billion a year out of the economy, how many jobs would that affect? Lets say 50% of that has a direct impact on jobs and each job is worth 35,000 a year. That's a loss of 5,571,429 JOBS! FIVE AND A HALF MILLION JOBS! Which means 5.5 million more on unemployment, which means that the deficit increases.
Maybe it's time for bloggers, internet dwellers, and young people to stop being amateur politicians and start being economists. Taxes, economy, unemployment, and your way of life are not a (D) or (R) issue. It's an American issue. Use your voice for that right now. There'll be time later for the (D) and (R) battles.
In my next post, I will list 700 billion dollars in annual government spending cuts the government can use to "pay" for these cuts. Even though, technically, these cuts don't need to be paid for since not cutting them could result in more unemployment which cost the federal revenue bottom line dearly.