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Tags: Economists | Bush | Tax | Cuts

Economists: Extend Bush Tax Cuts for Everyone

Tuesday, 10 July 2012 09:27 AM EDT

President Barack Obama has said he will extend the Bush tax cuts for a year for Americans earning less than $250,000 annually, though many economists says everyone deserves the extension regardless of income.

A CNNMoney survey asked 15 economists to rank what Congress could do to spur U.S. economic recovery, and nine endorsed some kind of extension of the Bush tax cuts.

Five of those in favor of extending the Bush tax cuts say everyone deserves the tax break, while four agree with the president's proposal of not including wealthier Americans.

Editor's Note: Startling Proof of the End of America’s Middle Class. Details in the Video

Those who favor including everyone in the tax break say the economy can ill afford to see tax hikes anywhere, especially considering how wealthier Americans create jobs.

"By pushing an extension for one group of taxpayers and not the other, you reduce the possibility of it being passed," says Carl Riccadonna, senior U.S. economist with Deutsche Bank, CNNMoney reports.

"We don't need to raise taxes in the short term. When unemployment is down to 6 percent, we can talk about phasing out these tax cuts, even though that could be a while."

Those who agree with the president say taxing wealthy Americans more will help narrow deficits.

"We do need more revenue into the government, but you've got to try to do that with the least economic harm," says Russell Price, senior economist with Ameriprise Financial Services.

"There will be a very modest negative impact (of raising top tax rates) but it's not as significant as some people would lead us to believe."

Obama says wealthy Americans will pay as much taxes as they did under the Clinton administration.

"It's time to let the tax cuts for the wealthiest Americans, folks like myself, to expire," Obama said in the East Room of the White House, according to Yahoo News.

"I'm not proposing anything radical here."

Republicans were quick to criticize the move, arguing tax hikes anywhere can stifle job creation.

"President Obama is still asleep at the switch when it comes to our economy and jobs," says Republican House Speaker John Boehner, Yahoo News adds.

"How will these small business tax hikes create jobs?"

Editor's Note: Startling Proof of the End of America’s Middle Class. Details in the Video

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Tuesday, 10 July 2012 09:27 AM
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