Congress Approves Bush Tax Cut Extension!

Both sides of the isle voted last night to approve a 2 year extension of the Bush tax cuts.

Late last night, just before midnight in fact, Congress finally approved the Bush tax cut extension for two more years. This means that workers of all tax brackets will pay less in taxes than previously planned for 2011 tax rates. This includes an extension of the $1000 per child tax credit, tax breaks for college students, and lower capital gains and dividends tax rates. Also included is a 2% cut in the social security tax, which will go from 6.2% down to 4.2%. That means for someone making $100,000 per year, they will have an extra $2000 to take home. Overall, this should be a good thing for the economy and hopefully stimulate job growth in the end.

The downside of this is that there were not any spending cuts to offset the lower tax revenues that will be coming in. Government spending will continue at the same pace, which means our nation’s deficit will continue to grow. So basically, both sides of the isle got their way for now.

One obvious question that comes to my mind is this: With social security already on the brink of bankruptcy, should we really be cutting it’s funding?

I would love to hear your comments and opinions on this matter. Feel free to comment below. Your identity and contact information will not be visible on this site.

3 Responses

  1. DC

    That is political correct about the social security taxes being cut but we do not need to take care of the rich surely before we take care of people on social security! This is such a disgrace for this country.The people that have worked all thier lives and paid into social security now It comes down to this what will happen to the people on social security when It goes bankrupt.I am sure that the rich will never miss what little tax they pay each year compared to the billion that make each year.I am saddened that we live in such a country that is so greedy and do not care what happens to the people in this country on ss.Well the rich does know that they want have to worry about ss as they get older because they have avoided a lot of different issues to gain for themselves.God will surely not add his blessing on these people in the coming years.

  2. TheMan

    I agree DC. This bill undercuts Social Security. That is the Republic Party’s plan: to dismantle SS. I despise that party for all it’s worth and I despise the DemocRATS for allowing it to happen. But as we know the DemoRATS are just the another version of the Republicans. The People are not really represented in this country any more. Even the Tea Party was let down because this bill is full of Earmarks.

  3. Dave

    To set the record straight, President Obama was the one the proposed and pushed for the 2% SS cut, not the Republicans. Clearly he is trying to jump-start the economy — or is it really to save his own job?? Regardless, we can all agree the 2% SS cut was not the right move.

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