United States Whole People Tax Cuts Pattern Will Unbreakable
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President Barack Obama in the U.S. tax cut extension bill signed, the focus of concern is that during the reign of former President Bush's tax cut to two-year extension, this means that the next two years, the United States is still the pattern of national tax will be unbreakable.
The Bush administration in June 2001, May 2003, in February 2008 signed the tax cut three times, especially in the Taxpayer Relief Act of 2001, the largest, according to the provisions of that time, the United States of all taxpayers in 2001 and 2010 , is expected to pay less tax 1.3 trillion. No doubt, "9.11" and the sub-prime crisis on the introduction of these three tax cut played a decisive role. The first two tax bills with a considerable degree of positive significance, benefit from the personal income tax, inheritance tax, capital gains tax and slash taxes, the United States to quickly resolve the "9.11" the impact on the real economy, re-enter a Wave boom cycle. As for the third tax cut bill, the effect is controversial, the current high unemployment rate and the U.S. called the turtle speed of U.S. economic growth illustrates one of the problems.
Under the tax cut extension bill, the next two years, the average annual income of about 5 million U.S. households each year, continue to enjoy tax relief of more than $ 2,140; average annual income of about 31 million U.S. households each year, continue to enjoy more than $ 9,300 The tax relief. Couples in the $ 110,000 annual income of less than U.S. households with annual incomes below $ 75,000 single-parent American family, can continue to enjoy $ 1,000 per year per child tax credit. In addition, the tax cut extension bill would pay tax from the current 6.2 to 4.2% of the provisional tax for the year. By this calculation, the annual income of about 4 million Americans in 2011, nearly $ 800 can receive an additional salary; annual income of about 10 million Americans in 2011 can receive an additional nearly $ 2,000 in wages.
As for the estate tax, Obama a reasonable idea of the initial rating for the $ 1,000,000 exemption, the tax rate set to 55%, the actual result was unexpected. The new program will be exempt from estate tax levy is $ 5,000,000 nominal tax rate to 35%, for the American rich groups, which less than heaven "gospel." Because of the new program will stimulate the transfer to future generations more wealthy groups and weaken the U.S. assets of the charity system has matured, questions linger.
In the 2008 presidential election will not be renewed more than once promised tax breaks for the wealthy Obama, this time change course, largely out of frustration. The Democratic Party lost the midterm Congressional elections, the U.S. domestic political atmosphere quickly caught stalemate. Despite the greater advantage of the Republican Party won control of the House of Representatives, but not completely with the power of one party to promote or prevent important proposals in Congress; Although the ruling Democratic Party lost control of the House of Representatives, but the Senate still hold a slight advantage words Right, still with the Republican Party at a crucial moment and the "close combat" the sustaining power, but this emboldened first took office than Barack Obama has been very different.
From the balance of powers perspective, the current stalemate between the two parties on the U.S. "democracy" is good, but eager to promote the middle class and below-income families for President Obama tax cut proposal, Congress has endless internal friction indicates that the final tax bill may be introduced beyond recognition. In view of this, Obama had to compromise with the Republican Party, to win the Republican tax cut provisions on the remaining long-term unemployed in particular the extension of relief provisions for their support. According to statistics, there are about 8.5 million U.S. long-term unemployed, each receiving $ 302 weekly unemployment benefits. The next 13 months, to extend long-term unemployed benefits are expected to increase 56.5 billion the U.S. government's financial burden.
The short term, tax cuts extension bill, the Obama administration is expected to make political and economic access to a certain return. According to Gallup poll results released later, about two-thirds of Americans support universal tax; same about two-thirds of Americans support the extension of the relief bill for long-term unemployed. Of course, most Americans do not support tax cuts for the rich is also expected. But, the latter a result of short-term political gain with the former losing a political plus, there remains no small gap.
In the economic field, with a compromise tax cut bill color on the U.S. real economy is expected to have a positive impact on the recovery. Some economists expect at least reduce the payroll tax rate for the U.S. GDP growth in 2011 contributed 0.7 percentage points. In the employment level, the nation's corporate capital investment tax measures or to promote recovery in the job market in the short term, the pattern of high unemployment is expected to change significantly.
However, there is no free lunch has never been the Obama administration to pay tax of about 858 billion U.S. dollars cost of all taxpayers need to pay for the United States. According to the U.S. Congressional Budget Office on the 2011 fiscal year and the budget deficit in fiscal year 2012, the latest estimates, even if no extension of the Bush tax cut, in fiscal 2011 deficit will reach 1.1 trillion U.S. dollars, in fiscal year 2012 reached 665 billion U.S. dollars. Coupled with the existing stock of debt, to the end of 2012, the U.S. national debt of total GDP, or more than 68%, this figure is far higher than the internationally accepted warning line.
According to rating agency Moody's December 13 release evaluation report on the Obama administration's tax cut bill on its financial situation is bound to cause great negative impact, the negative impact of tax cuts on economic growth is difficult to be the positive impact of complete offset. According to Moody's forecast up to the end of 2012, total U.S. national debt will exceed GDP, 72%, this number is clearly greater than the Congressional Budget Office estimates the result, contains a certain amount of debt and even political risks.
Even more worrying is that, as the United States after World War II "baby boom" generation entering retirement age acceleration section, a huge budget deficit the nation's future health care expenses under the probably more stretched. If the tax cuts need to cut the cost of health care spending, then the fear of Obama is not optimistic prospects for re-election. |
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By :
Jessie Stone
Submitted
2011-01-03 23:21:40 |
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