Obama wants to raise taxes on everyone making over $250,000 / year by letting the Bush tax cuts that affect them expire. He also wants to leave in place the REST of the Bush tax cuts for everyone else for 1 year.
People have estimated the ‘cost’ of the tax cuts at $2.9 Trillion over 10 years… and if Obama has his wish the ‘cost’ will drop to $2.1 Trillion over 10 years. Obviously the majority of the $’s from the tax cuts go to the poor and middle class.
By letting that segment of the tax cuts expire… the country is estimated to gain $800 Billion in revenue over 10 years. $80 Billion / year.
Obama’s yearly deficit is $1.4 Trillion. Nearly DOUBLE per year what is expected to be gained over 10 YEARS. Obama has ALSO stated that the revenue generated will NOT go towards the US debt… but instead will fund other programs.
How does that make economic sense? How is that NOT evidence of class warfare?
In response to the Republicans standing firm on not letting the tax cuts expire for the ‘wealthy’, the Democrats have threatened to allow ALL the tax cuts to expire.
Democrats say they are willing to let the poorest tax payers suffer a 50% increase in their taxes in an effort to force the ‘wealthy’ to pay more.
(Here’s a great calculator to show you the effects on your taxes)