Bush Tax Cuts By: Stephanie Silver, Matias Beeck, Amber Sime, Carey Green, & Tasha Saieh

The Original Plan 2001 & 2003 tax cuts Economic Growth and Tax Relief Reconciliation Act (EGTRRA) of 2001, and the Jobs and Growth Tax Relief Reconciliation Act of Cut taxes across the board for earned income, long-term capital gains and dividends. Expanded the child tax credit and adjustments to the tax code,(exemptions, deduction and the marriage penalty)

The dilemma + $5.6 trillion  -$1.34 trillion. What people are saying: Republicans Democrats

Obama’s Proposal 59% versus 7% The Small Business Administration (SBA) Obama’s Plan: Married couples Single taxpayers 97% of small business owners vs. other 3% Change tax on dividends back to 30% Families that make more than $250,000 a year

Obama’s Proposal Continued… Obama’s Plan Cont: Capital Gains Tax 53% of Americans agree with Obama’s plan Democrats vs. Republicans 63% of voters National Association of Manufacturers – complain about how the president’s budget call for almost $500 billion in new taxes on businesses over the next 10 years

NABE – Economists Survey This survey represents the views of 242 NABE member economist At least 60% of economists said we should extend tax-cuts Another 22% of economists agreed with Obama’s Plan ¾ of economist said that Congress should not enact another plan to jumpstart the recovery of the economy

Orszag (Obama’s former white house budget director) Best approach is a compromise Extend tax cuts for 2 years and then end them Increase deficit by $3 trillion Pros Job market won’t decrease Higher taxes = halt consumer spending Incomes raise over two years More money to spend Surest method Nothing permanent Cons Unaffordable Cripple small businesses and economic activity No guarantee that economic situation changes Difficult to complete this compromise Procrastinating = worse consequences? Ending tax cuts now = immediate decrease in deficit

FOR: Mark Zandi, chief economist for Moody's Economy.com Argument: Letting the tax cuts for the affluent die now could stunt the economic recovery and send us into a new recovery. Sarah Palin, politician and Fox News commentator Argument: Letting the tax cuts expire would amount to "the largest tax increase in U.S. history” AGAINST: Alan Greenspan, former chairman of the Federal Reserve Argument: If Washington can't pay for the tax cuts (and it can't), extending any of them would be "disastrous.” Alan Blinder, Princeton economist and former Fed vice chairman Argument: There's no good reason to extend the tax cuts for the affluent, and plenty of good reasons to put that pool of tax revenue to work actually helping the economy.

What is Expected to Happen if The Tax Cuts Are Extended $9-$10 trillion No government jobs can be created  depressed demand and an excessive budget deficit. Decrease by $200 billion dollars deficit  high interest payment  many years 7orszag.html?_r=1

What the people are suggesting What people from different classes are saying we should do Zakaria ( taxes-mr-president.html) Peter Orszag ( tml) Economist’s surveyed ( survey-most-economists-favor-extending-bush-tax- cuts/?KEYWORDS=Bush+tax+cuts) survey-most-economists-favor-extending-bush-tax- cuts/?KEYWORDS=Bush+tax+cuts Obama’s opinion

Effects of suggestions people are giving. Pros/Cons (Zakaria) Pros Cons Pay off debt Public outrage Tax credits for jobs Rep. & Dem. tension Reduce foreign dependence

What we think congress should do We agree with Zakaria!

Websites Used: d-R.-Francis/2010/1014/Tax-the-rich-not- small-business d-R.-Francis/2010/1014/Tax-the-rich-not- small-business axes.html axes.html nabe-survey-most-economists-favor- extending-bush-tax- cuts/?KEYWORDS=Bush+tax+cuts nabe-survey-most-economists-favor- extending-bush-tax- cuts/?KEYWORDS=Bush+tax+cuts