“On this, economists agree: Extending tax cuts passed under President George W. Bush for low- and middle-income people would strengthen the weak economy.” “The question is what to do about the highest-paid 3 percent of taxpayers.” (Aversa, Jeannine, 11/27/2010, Associated Press, How Congress’ tax-cut decision may affect economy, Retrieved from www.news.yahoo.com). Here’s a suggestion, how about telling the truth, the whole truth and nothing but the truth?
Consider this if taxes were allowed to return to 2001 rates for corporations and become permanent for everyone else, “Moody’s Analytics says that under this scenario, the economy would grow 2.6 percent in 2011. That’s better than the scant 0.9 percent growth envisioned if everyone’s tax cuts expired.” “Economists note that low- and middle-income people tend to spend more of their take-home pay than the highest-earners do.” “The budget deficit would fall to $904 billion in 2011, from $1.3 trillion in the just-ended budget year.” “That would be due to the additional taxes paid by higher-income Americans.” (Aversa, Jeannine, 11/27/2010, Associated Press, How Congress’ tax-cut decision may affect economy, Retrieved from www.news.yahoo.com). This would only be so if those taxes were actually paid.
Congressional Budget Office (CBO) calculated a 10% rate of revenue from these businesses from 2001 to 2010 yet according to Wikipedia these same businesses only contributed about 7% of revenue. That being the case, how can anyone assume the contribution of those additional taxes when there has been no evidence that they even paid what was projected by the CBO? Understand also that according to Wikipedia individual taxes which contributed to the revenue was at a 43% clip, so while the top 3% of wage earners enjoyed many years of tax breaks, they did not contribute even half of what the other 97% did. The only jobs created by these tax breaks were those overseas on in high-end establishments which did not make it to Main Street.
Imagine, if you can, how much better a position this nation would be in, economically and deficit wise, if these same businesses who now have the same rights as individuals had contributed the same amount to revenue.