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Friday, August 27, 2010

Some Democrats Wake Up And Acknowledge Raising Taxes In Harsh Economic Times Is A Bad Idea

Took them long enough and it is still a minority of Democratic politicians, but it goes to show, some of them still have at least one brain cell still functioning.

Wapo reports:

With the economy rapidly weakening, some senior Democrats are having second thoughts about raising taxes on the nation's wealthiest families and are pressing party leaders to consider extending the full array of Bush administration tax cuts, at least through next year.

This rethinking comes barely a month after Democrats trumpeted plans to stage a high-stakes battle over taxes in the final weeks before the November congressional elections.

The Bush tax cuts are set to expire in December. Republicans are pushing to extend them all, while President Obama has forcefully argued that the country cannot afford to keep tax breaks on income over $250,000 a year for families and $200,000 a year for individuals.

But a growing cadre of Democrats - alarmed by evidence that the recovery is losing steam and fearful of wounding conservative Democrats in a tough election year - are advocating a plan that would permanently extend tax cuts benefiting the middle class while renewing breaks for the wealthy through 2011, senior Democratic aides said.

That idea has long appealed to some conservative Democrats in both chambers, who argue that Congress should not raise anyone's taxes until the economy is more stable. But Democrats said it has gained momentum since economist Mark Zandi, a key adviser to House Speaker Nancy Pelosi (D-Calif.), adopted that view during a presentation at a Democratic issues conference in California in mid-August.


The top 5 percent – or those making more than $153,000 – pay 60% of all federal income taxes.

The top 1 percent – or those making more than $333,000 – pay 40% of all federal income taxes.

Some Democrats are finally waking up to the fact that if these people, the ones keep this country running with their money, via taxation, decide to stop spending because the government is taking more..... it will cripple America financially.

Now whether they truly understand this concept or are simply doing this to save their political asses before the November elections where the atmosphere is toxic for Democrats, is another question.

One most of us already know the answer to.