DALLAS – In 2001, then-President George W. Bush proposed changes to the payroll tax code meant to slash rates for American households.
Those were set to expire in 2010 and have since been extended. They will again expire on Jan. 1, 2013. Republicans have wanted to keep the tax cuts for all citizens –– including the highest earners who pull in more than $200,000 a year. Democrats, including President Barack Obama, have expressed interest in keeping the tax cuts for all who make below $250,000.
The argument lies in how much it would cost the government to keep the tax cuts on the books as they are now. The New York Times has reported it would cost about $900 billion to continue with the cuts, an amount that would likely end up ballooning the country’s deficit further.
During a May debate in Houston, Sadler, a Democrat, said he supported allowing the Bush tax cuts expire at all income levels –– a position that goes beyond the president’s.
“The third thing that we are going to have to do is we are going to have to let those Bush tax cuts go in order to pay down the national debt,” he said then. “Because at the end of the day, if you look at the budget –– any of you that are honest and will look at it –– if you look at the budget you get down to our military and defense spending or the Bush tax cuts.”
To watch that video, head to the debate link in the top right of the page and skip to 25:35 in Part 2 of the footage.
Culled from third-party sources:
- Topic: Bush-Era Tax Cuts, The New York Times