Posts Tagged ‘tax cuts’

“Tax Cuts For Millionaires” Democrats’ New Rallying Cry

Friday, December 3rd, 2010

Republicans and Democrats are once again failing to compromise – this time it’s on a major tax decision for wealthy Americans.

  • During the Bush presidency, taxes were cut for pretty much everyone, at every income level. But now Congress is having a pretty heated debate about whether to renew them this month.
  • Republicans want to keep the tax cuts, but Democrats believe that raising taxes on the rich (to pre-Bush levels) is the only way to reduce our giant budget deficit and fund relief for Americans suffering from the recession.
  • Publicly, Democrats are fighting the extension of Bush-era tax cuts, calling them “tax cuts for millionaires.” But because opposition from Republicans is so strong, they may be forced to accept a renewal of today’s tax structure.

Facts & Figures

  • Republicans once coined the emotionally-charged term “death tax” to turn public opinion against estate taxes
  • Some Dems have proposed a compromise that only raises taxes on households making more than $1 million

Best Quotes

In the Democrats’ corner:

“Just as the death tax sort of put Democrats on the defensive on the estate tax, the millionaires’ tax is putting the Republicans on the defensive on tax policy. I think it is a potent issue with the public.” – New York Democratic Senator Charles Schumer

The Republican perspective:

“They are trying to create class warfare. But I don’t care who they take it from. It’s still money out of the private sector.” – South Carolina Republican Senator Jim DeMint

Group Of 20 Wants The World’s Currencies To Stay Steady

Monday, October 25th, 2010

It doesn’t make sense at first, but sometimes countries actually want their currencies to be worth less. Of course, if everyone tried to do it at the same time, disaster would ensue…

  • The G-20 – a group of financial leaders from 19 nations and the European Union – met this weekend in South Korea to discuss economic policies related to global economic stability.
  • One of the goals of this meeting was to encourage countries to end “competitive devaluation of currencies.” Devaluing your country’s currency makes it cheaper for other countries to buy from you, and more expensive for your citizens to import goods from other countries. This can boost domestic production and export profits. When a country devalues its currency, other countries often do the same so they can remain competitive in the export market.
  • Both China and the U.S. were singled out for recently devaluing their currencies. Though the G-20 hasn’t set up specific regulations and wouldn’t have the power to enforce them if it had, the hope is that public shaming will keep finance ministers around the world in line.

Facts & Figures

  • China is currently taking in 4% more money than it is expending, reflecting a favorable balance of trade.
  • The U.S. is spending 3.2% more money than it is taking in, indicating a trade deficit.
  • As of Monday morning, one euro was worth $1.39, and one dollar was worth 81.31 yen.

Best Quote

“I want the market to value the fact that we were able to forge a certain level of agreement.” –  Yoshiko Noda, Japanese Finance Minister

Tax Break And Debate

Wednesday, July 28th, 2010

Republicans and Democrats squabble over the extension of tax breaks for middle income families.

  • Debates over taxes and spending in Washington are prevalent as both parties attempt to address The Unites States’ ballooning budget deficit.
  • Democrats advocate extending tax cuts for the middle class while eliminating tax cuts for higher income Americans.
  • Republicans say that it is unwise to allow upper income tax breaks to expire, insisting that it will weaken an already unstable economy.

    Best Quote

    “Washington Democrats are poised to allow the largest tax increase in American history to take effect next year.” – Mike Pence, Republican, Indiana