Tax Cuts Still Likely
By Alan Stewart Carl | Related entries in Barack, TaxesSo, with all the economic turmoil, can those of us in the middle class still expect a tax cut from Barack Obama’s administration? Yes we can.
By all accounts, Obama is committed to making middleclass tax cuts part of the stimulus package he hopes to sign into law shortly after taking office. The cuts will likely be of the tax credit variety which he proposed during the campaign. Although, to make those credits available more quickly, the IRS and employers could add the money directly to paychecks rather than mailing out refunds.
Mind you, this would be an effective lowering of payroll taxes, not income taxes, meaning that the lost revenue for Social Security, Medicare and Medicaid will eventually have to be covered through other means. It’s too tricky for my tastes, but the surest way to get more money into the economy is to give consumers more spending power, not with a one-time “stimulus check” but with a permanent tax decrease.
Obama’s tax plan will likely look different once Congress gets through the bargaining and wrangling, so I’ll avoid getting into the minutiae of what would and would not be best until there’s an actual plan on the table. But, for now, it does look like Obama plans to live up to his promise of cutting taxes.
This entry was posted on Wednesday, December 3rd, 2008 and is filed under Barack, Taxes. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
December 4th, 2008 at 12:17 am
Alan Stewart Carl: “Tax Cuts Still Likely”…
Under the Obama administration as promised, argues the moderate blogger: “By all accounts, Obama is committed to making middleclass [sic] tax cuts part of the stimulus package he hopes to sign into law shortly after taking office. The cuts will likel….