Key arguments for and against making permanent the 2001 Bush tax cuts for income greater than $250,000
For extending the tax cuts:
- During economic recession, raising taxes on anyone hurts the economy as a whole
- Wealthy people are the ones who build businesses, invest in companies and create jobs.
- Small businesses will be hurt disproportionately by any tax increase.
Against extending the tax cuts: - Eliminating the tax cuts for incomes $250,000 or more would reduce the federal deficit by $10 billion by 2015. Eliminating it for all incomes would reduce the deficit by $32 billion by 2015.
- The very rich won't use money saved to boost the economy as well as the government could use it for job creation and deficit reduction.
- Congress enacted the tax cuts at a time of record economic surplus; the government is now running historic deficits.