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Is letting temporary tax breaks expire as planned equal to a tax hike?
I'm confused. When the Bush Tax Cut extension was being debated, Republicans said that letting the cuts expire would be equal to a tax hike. Democrats said that they were simply expiring as planned, and if rates went up it wasn't really a tax hike, it was just the planned ending of a program. Now we have a temporary payroll tax break set to expire, and democrats are claiming that letting rates return to normal would be a tax hike on the middle class. This is the exact opposite of what they said a year ago. Which is it? Is letting a temporary tax break expire as planned a tax hike, or not?
7 Answers
- ?Lv 59 years agoFavorite Answer
Yes it is still a tax hike:
If someone started their first job in 2011, it is a tax hike. Also, the payroll tax holiday was supposed ot replace the $800 make work pay credit from 2009 and 2010. So it has been going on for 3 years. If you think about it, all tax policies are temporary.
- ?Lv 79 years ago
The payroll tax break was intended to be permanent but was not able to get it passed unless a time limit was added. The Bush tax cut was never officially intended to be a permanent cut although they probably envisioned it. Nevertheless the truth of the matter is that the democrats want the payroll tax cut to be extended so they would call its expiration a tax hike. And the republicans want the Bush Tax cut to be extended so they have called its expiration a tax hike too. So they both are putting their political stance on the subject. To put a different focus on it, the Bush tax cut costs the country way more then the payroll tax cut and it does not benefit the rich or the economy nearly as much as the payroll tax cut. z
- SarahLv 79 years ago
The opposite could also be said:
The GOP said they oppose ALL tax increases. They tried to shut down the government in their demands for the Bush tax cuts to the rich, but willingly accept and promote raising taxes on the middle class....after three years of opposition to "all" tax increases.
Which is it?
- Cali LivinLv 49 years ago
Democrats are pointing out the hypocrisy and are using the Republicans own words to hurt them and it's working.
Democrats are smarter then you think.
If Republicans want to say "letting the cuts expire would be equal to a tax hike". Then fine lets say that then.
What???? Now all of a sudden it's not a Tax hike???? Hypocrisy!!!!!!
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- itsamini1Lv 79 years ago
this is still the Bush tax cuts that are about to expire again. It is the same tax cut as before