Obama vs Bush tax cuts?
I've heard a lot lately about the Obama tax cuts. Which are/were better for middle class? Corporations? & General economy stimulus? Please help me get a better understanding of the whole picture.
- EvieLv 61 decade agoFavorite Answer
There is no such thing as the Obama tax cuts. All he is doing is keeping the Bush tax cuts except on people that make more then $250,000 a year.
The Bush tax cuts gave everyone across the board a tax break. But as the senate and congress decided to take a break to go and campaign, they have decided not to do anything about them until after elections. Hence, we are all going to get screwed. If the Bush tax cuts expire, everyone is going to see an increase in taxes, regardless of income level.
- Anonymous1 decade ago
Overall, Obama has increased taxes on the middle class, there have been no "Obama Tax Cuts" despite what the media says. In fact, his new healthcare bill includes a hike in the payroll tax, a tax on tanning, a tax on blue cross/blue shield, a tax on heath insurance plans, taxes on employer provided health insurance and even taxes on childrens' hospitals. Even more so, the financial overhaul bill (Dodd-Frank Bill) will introduce new taxes and regulations on banks, companies and middle class Americans. Obama did fund some tax relief to companies, most of which were hand picked industries and probably won't help average Americans.
President Bush on the other hand did cut income and capital gains taxes for everyone, including the middle class and rich. Bush's tax cuts were more helpful since the rich create the most economic activity in America and the middle class spend money on the enterprises that the rich create. Obama wants to increase income tax rates on the rich, increase the payroll tax, and the capital gain tax (all of which will harm the middle class), and also institute a multitude of new taxes while keeping the income tax rates the same on the middle class Americans. Basically, you work more for the government under Obama than you did under Bush.
However, this doesn't mean that Bush administration spent the money it got wisely. You must take into account that BOTH Bush and Obama bailed out banks, insurance companies and car companies. Much of what was spent on during both of these administrations was a waste. Our own government would tell you that the American Reinvestment and Recovery Act (ARRA, or the stimulus package) cost more than the Iraq War.
Economies are much more efficient when the government is small, and taxes and regulation are kept to a minimum. Obama's economic policies will hurt the middle class and poor more than anyone else.Source(s): cato.org (CATO Institute) cbo.gov (Non-Partisan Congressional Budget Office) gao.gov (Government Accountability Office) heritage.org (Heritage Foundation) opencongress.org (OpenCongress website--allows you to read bills, laws and track what the government is doing)