John Kerry has stated in his campaign that if he were elected president he would at the very least repeal some of President Bush’s tax cuts. He would raise the taxes of the rich, but leave in place the tax cuts for the middle class. This displays a remarkable level of political consistency on Kerry’s part as he did in fact vote against the tax cuts. It is however a completely disingenuous position as all of the Bush tax cuts are temporary. And without an affirmative act of congress they will expire on their own.
The tax relief packages passed by the congress at the urging of the Bush Administration have been instrumental in bringing the economy out of the recession that began in 1999. Productivity is soaring, homeownership is high, inflation is low, interest rates are low and what you hear from the Democrats notwithstanding, unemployment is low. People and businesses are doing amazing things with their money. The question now is – will they be able to continue.
The self-expiring tax cut was a bad but necessary compromise without which it is likely impossible there would have been any tax relief. But for the economy to continue to grow into the future the compromise needs to be undone. The tax cuts need to be made permanent.
Americans for Tax Reform has a site set up to help interested citizens contact their congressional representatives regarding the tax cuts that are set to expire in the near future. If you like the idea of being able to keep a larger portion of the money you earn, I would suggest contacting your representatives and urge them to make the tax cuts permanent.
The ATR site has a pre-written letter that you can use, or you can write your own text and use their system to send it.
Their letter and email system can be found here. The ATR letter reads in part:
Unless the House and Senate move legislation America will be faced with the largest tax increase in the history of the United States, affecting nearly everyone. Marginal tax rates would go up for everyone that pays taxes. The Death Tax will come back from the grave, and the child tax credit will shrink to half of its present size. Tax credits for employer provided childcare and adoption will be finished, and business expensing tax cuts will go away. Capital gains taxes will shoot back up.
Worst of all, America’s new economic recovery will be stopped short.
In total, America will be faced with a tax increase of roughly $2 trillion!!
If you feel the government is better qualified to spend the money you earn; if you believe a recovering economy can absorb a $2 trillion dollar hit; if you believe any person has a just claim against the earned income of another then ignore this post and ignore this issue.
If you believe that you have a right to keep the money you earn and that the government has no right to take your money for the purpose of handing it to those who did not earn it and you choose to ignore this issue and take no action – even as minimal as sending a form email to your representative – then please have the dignity and the integrity to not whine too loud when your higher tax bill comes.