Obama and the Dems and Romney and the GOP all agree that the Bush temporary tax cuts on the middle class shouldn't be allowed to expire just yet. (I disagree, but that's another story.)
The basic difference between the parties is whether the Bush temporary tax cuts cuts on the rich ($250K in income or higher) should be allowed to expire (as they were originally designed to last year). Obama says yes, Romney says no.
The GOP argument is that All Jobs Flow Down from the Rich. If you tax the rich, then they in turn have less money to provide jobs to all those eagerly-awaiting hoi polloi looking for an honest wage. Calamity ensues.
Except, looking at the historical record, higher incremental tax rates for the most wealthy don't correlate with job or wage growth. They only correlate with wealthy net income growth.
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Why Letting The Bush Tax Cuts For The Rich Expire Will Not Hurt The Economy, In Three Graphs
President Obama is planning to call on Congress today to extend the Bush tax cuts for another year, but only for those making less than $250,000. The Bush tax cut package is scheduled to expire at the…
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