Bush Tax Cuts Do Not Need a Tax Extension

According to the Economic Policy Institute (EPI) it has been ten years since the tax cuts from former President George W. Bush were passed into law, and people are still unhappy about the outcome of the tax reductions.  People believe that the tax cuts were useless, very expensive, and not fair to all Americans.

EPI wants what is best for the economic status of the middle- and low-class Americans.  While doing some research, they found ten things about the Bush Tax Cuts that are important to know and understand.

1. The tax cuts helped out the wealthy more than anyone, … Read the rest

According to the Economic Policy Institute (EPI) it has been ten years since the tax cuts from former President George W. Bush were passed into law, and people are still unhappy about the outcome of the tax reductions.  People believe that the tax cuts were useless, very expensive, and not fair to all Americans.

EPI wants what is best for the economic status of the middle- and low-class Americans.  While doing some research, they found ten things about the Bush Tax Cuts that are important to know and understand.

1. The tax cuts helped out the wealthy more than anyone, and they are the ones that needed help the least.

2. Low-income families only received around 1% of the tax cut benefit, and some of these families did not see any improvement at all in their overall tax situation.

3. Wages were lowered and there was no trickle down of opportunities like there was hoped to be.

4. The stimulus was very poorly designed.

5. The economic growth that was likely to happen was not long-term and the recession increased as time passed.

6. The tax cuts were so widespread that it made the national debt even greater than previously anticipated.

7. The cuts were more expensive than they promised to be.

8. They were more expensive than promised, and they still continue to be expensive.

9. Much Federal revenue was reduced by these tax cuts as estate taxes were removed.

10. Finally, the cuts have increased interest spending by America, even today. Much of the new debt is required to pay the interest on the new debt accumulated.

Are Corporations Avoiding Taxes?

Some large firms can avoid taxes according to a citizens group for tax justice. Almost one dozen large firms like Boeing, GE, and Wells Fargo reported on their taxes in 2010 a combined revenue of $62 billion while paying a negative 3.6 % rate in federal taxes.

Citizens for Tax Justice is a group in Washington supported by labor unions with a desire to convince the president to rework the current corporate tax code to prevent collecting extra profits. The group alleges these numbers make the case for applying a tax overhaul to produce increased revenue for the federal government.… Read the rest

Some large firms can avoid taxes according to a citizens group for tax justice. Almost one dozen large firms like Boeing, GE, and Wells Fargo reported on their taxes in 2010 a combined revenue of $62 billion while paying a negative 3.6 % rate in federal taxes.

Citizens for Tax Justice is a group in Washington supported by labor unions with a desire to convince the president to rework the current corporate tax code to prevent collecting extra profits. The group alleges these numbers make the case for applying a tax overhaul to produce increased revenue for the federal government.

The president of GE claimed their company is compliant with current tax laws. They plan to have their tax forms filed no later than September and predicts a little tax liability for the year. Several elements can explain the decrease in federal tax rates and a greater profit margin like the outcome of audits on an older return. Corporations can also claim domestic expenses as tax deductions. While profits made overseas don’t count until they come back in the country so they aren’t really trying to avoid taxes.

The report also included FedEx, IBM, Honeywell, Verizon, and Exxon Mobil. The dozen corporations made $171 billion collectively between 2008-2010. but paid a 1.5 negative tax rate. Citizens for Tax Justice claim they base the research on the Security and Exchange Commission 2010 tax filings. A meeting is scheduled for tomorrow about the impact of a tax overhaul on large corporations.