White House: Tax Cuts for the Wealthy to Expire
A bit of news from the White House.
Treasury Secretary Timothy Geithner said the Obama administration will allow tax cuts for the wealthiest Americans to expire on schedule despite calls from a small but increasingly vocal group of Democrats to delay any tax increases.
SNIP
Mr. Geithner said the White House will allow taxes on top earners to increase on Jan. 1, 2011, as part of an effort to help bring down the mounting budget deficit. He said the White House still plans to extend tax cuts for middle- and lower-income Americans and expects to undertake a broader tax overhaul next year.
“We believe it is appropriate to let those tax cuts that go to the most fortunate expire,”Mr. Geithner said at a breakfast with reporters, hosted by the Christian Science Monitor.
Remember the trickle down theory does not work. Those who are concerned with higher taxes on the wealthy perhaps this will incentivize wealthy individuals to not create taxable events and invest in building the economy by creating jobs through business expansion rather than withdrawing wealth as personal income. During the period from 1945-1970 the tax rates were the highest in history and we had an enormous middle class boom. When Bill Clinton increased taxes on the wealthy we had an economic boom. This is argued by economist to be partly because wealthy individuals were incentivized to keep their money in their businesses instead of taking their money out for personal consumption and speculative activities. Actions that would be a taxable events thereby resulting in such individuals being charged the higher tax rate. Instead wealthy taxpayers put their money back into their businesses by hiring more people and growing their businesses.
NOTE: Attorney barred in the District of Columbia and California currently looking for opportunities in the private and government sectors. Specializes in ediscovery/litigation efficiency project management but can do straight litigation or litigation management. Feel free to contact me with opportunities at progress@progresspolitics.com

