By Morgan Currier
In today’s news highlights, the New York Times explains how extending the Bush tax cuts is bad for business, Nevadans call the question on the Republican tax plan, and New Jersey Congress members are blasted for playing favorites with the country’s richest 2 percent.
New York Times, Editorial Board, 8/6/2012
As Nelson Schwartz reported in The Times on Monday, a number of manufacturers say they are canceling plans for investing and hiring, in part, because they fear that some $100 billion in budget cuts will take effect in 2013. In all, the law currently calls for $1.2 trillion in automatic spending cuts over 10 years, starting Jan. 1, divided between nondefense programs and defense projects.
The best approach is to delay the blow of lower federal spending, thus shielding businesses from a sudden drop in support, and, at the same time, temporarily extend the Bush-era tax cuts for most Americans and let them expire for those making more than $250,000 a year, as President Obama has proposed. That would raise revenue and be a credible step toward long-term deficit reduction, without harming the recovery, because high-end tax increases do not cut deeply into consumer spending.
That is crucial because higher taxes for top earners is necessary for the nation to begin to raise the revenue it needs. And until the rich pay more, there will never be a national consensus for tax increases on middle-income Americans, which will eventually be needed to further curb long-term deficits.
Fox Reno, Mike Clifford, 8/6/2012
Bob Fulkerson, executive director of the Progressive Leadership Alliance of Nevada, says the average Nevadan makes about $56,000 a year – and, in his view, clearly needs a tax break. As for those making more than $250,000? Fulkerson says those very few Nevadans are already doing very well.
Linda Turner, a Medicare recipient from Henderson, believes Republican concerns about plans to increase taxes on the wealthy are misplaced because they are not the real job creators. “It’s only a 3 percent increase for the top bracket. The real job creators are people like me, because we spend our money. Because of us, grocery stores stay in business, or wherever we shop.”
Fulkerson says the group Americans for Tax Fairness has taken a close look at the Republican plan and finds it would give a large break to only a few taxpayers in Nevada. “Incomes over $250,000 are going to get a tax cut of $45,000. Those in the Republican plan who are making under that are going to get a tax break of $1,200. We don’t think that’s fair.”
New Jersey Newsroom, Ann Vardeman, 8/6/2012
New Jersey Citizen Action criticized members of the New Jersey Congressional delegation who helped to defeat a middle-class tax bill in the U.S. House of Representatives on Aug. 1. The bill would extend the Bush-era tax cuts for every state resident on the first $250,000 in household income, but would end them above that level, which only benefit the richest 2 percent of Americans
“How can these six members of the House vote for legislation to ensure the richest 2 percent of their constituents continue getting tax breaks, while making their middle- and lower-income constituents pay the tab? The richest 2 percent of Americans already get the biggest tax breaks that most New Jerseyans can only dream about. Congress must end the Bush tax cuts for the richest 2 percent, so the wealthiest Americans start paying their fair share.
The House-passed bill that would extend the Bush tax cuts for the richest 2 percent would give someone who makes more than $1 million a year an average tax break of about $150,000 more than the Senate-passed middle-class tax cut bill, which the House rejected yesterday.