Just about every rational person agrees that the US economy remains in a fragile state, and that one of the many items adding to this fragile state is the uncertainty as to what will happen on Jan 1, 2013, when the Bush Tax Cuts expire, which would require that everyone will be paying much more in US federal income tax.
Also, about every rational person agrees that something must be done to reduce, in the long run, the very high US Debt level.
Further, about every rational person agrees that the US economy is now in need of at least a dose of fiscal economic stimulus.
The disagreement is what are the best US government initiatives that effectively, efficiently, and optimally address all of the above.
But on the positive side, about every rational person agrees that those US taxpayers making $250,000 or less, should not be paying more US federal income tax when the Bush tax cuts expire on Jan 1, 2013.
Clearly, the very fragile US economy will be in a perilous state if the 98% of the country making $250,000 or less have their take home pay significantly reduced when the Bush tax cuts expire at the beginning of 2013. This will lower significantly US real GDP growth, US retail sales, US business profits, and frankly, also further increase US unemployment and US underemployment.
Thus President Obama's proposal to extend for one year the Bush tax cuts on those making $250,000 or less, which would include a massive 97% of US small businesses, is a Stroke of Genius. And taxpayers making more than $250,000 would be entitled to the same Bush tax cut one-year extension on their first $250,000 of income under Obama's proposal. Since, nearly everyone agrees with Obama's wise proposal here, the US Congress should immediately pass it. And the US economy will be immediately helped some just by the passage of it.
There is no way that Republicans in the US Congress can in all fairness reject this proposal. It should pass immediately, and anyone in the US Congress who votes against it, or filibusters it in the US Senate, or plays any direct or indirect role in not permitting it to be considered on the US House floor, should be targeted by voters for defeat in the upcoming November 2012 election for conduct severely detrimental to the country's fragile economy, and particularly harmful to US job creation.
Later, what happens to those making more than $250,000 a year can be debated.....it is a very complicated issue, and needs ample time to be properly discussed.
