As was mentioned in a previous post, Congress has the power to set the country’s financial affairs. That includes how much money comes in (through your income tax) and how much money goes out (for things like the military, social programs, and infrastructure). This decision is made every year through the process of voting on a Federal budget, and it just so happens to be that time again. So what are the boys and girls in the Capitol doing this time around? Here’s a clue – “Tax cuts? We don’t need no stinkin’ tax cuts!”
It’s my firm belief that the US Taxpayer is overburdened already, but apparently there are those in both houses that believe otherwise. The Senate voted on a non-binding $3 Trillion (that’s a “3” with 12 zeros after it) budget plan that, while freezing earmarks for 1 year, includes increased spending on other international programs. But here’s the kicker: the tax rates put in place by President Bush (AKA “The Bush Tax-Cuts”) will only be extended one more year, not permanently, and only to “low income earners”. A Republican measure was defeated in the Senate that would extend all the tax cuts. “Low income earners” are not you or me. Go figure.
Over in the House, a similar bill was passed. According to Reuters:
Much of the House debate centered on Republican charges the bill eventually would bring a record tax increase. Democrats countered it would protect middle-class tax cuts now in place that are set to expire at the end of 2010.
Somehow, I just don’t buy it.