Monday, November 19, 2012
At the end of this year, the Bush tax cuts are set to expire. President Barack Obama has been clear that he will let them expire for those making $200,000+ (or couples making $250,000+). Many members of Congress have signed the Grover Norquist pledge not to raise taxes. These Congressmen (and women, I presume), have to make a decision whether or not they will be able to compromise between letting these tax cuts expire and actively voting to raising taxes. It will be an easy explanation that the vote for a smaller tax increase will not equal allowing the tax cuts to expire to their expected level. Economist Paul Krugman has argued that Barack Obama should not back down and allow the tax cuts to expire alleging that the compromise talk is on par with blackmail. So, we'll have a showdown, coming. It's up to the members of the House of Representatives to initiate a bill that will allow this or not allow it, after all, all tax bills have to originate in the House. Barack Obama, I assume, is set to veto any law that continues the Bush tax cuts.