Reuters: Obama to allow Bush tax cuts to expire on schedule.

[Baikonour]

http://www.reuters.com/article/topNews/idUSTRE51K1ZF20090221

WASHINGTON (Reuters) - President Barack Obama will allow tax breaks given to wealthier Americans under his predecessor, George W. Bush, to expire as scheduled rather than eliminate them sooner, an administration official said on Saturday.

Obama, who promised during his White House campaign to roll back tax cuts on people earning more than $250,000, also plans to boost tax collections from about 16 percent of the economy this year to 19 percent in 2013, the official said, confirming a Washington Post report on Obama's budget proposals for the 2010 fiscal year.


Kind of odd to be hearing news like this on a Saturday. Any idea why he's not cutting them sooner?

[GoesTo11]

1. That's going to really hurt

as soon as I buy that plumbing business and start making over $250,000 / year.

[jody]

2. Last time I looked it is up to congress to let the law sunset. n/t

[paulk]

3. he's not cutting them sooner

because he's afraid that what happened to Bill Clinton when he rescinded the Reagan era tax cuts will happen to him, even though he knows that it's the right thing to do.

More change we can believe in.

[kwenu]

4. Yes. He is trying to settle the market by creating certainty about his plans.

[Kdillard]

5. Why would he do this sooner? It makes no sense politically or

practically given the economic situation. Letting them expire is what he has been saying for a long time. I would be upset if he had changed his mind.

[paulk]

6. I think it's a hard argument to make

that rescinding the Bush tax cuts isn't "practical" in the current economic situation. Can you make the case that the tax cuts have been good for the economy these last 8 years?

How long has Obama been saying he would just let these tax cuts expire? I only recall him saying that he would raise taxes on those making over 250k. In other words, those benefiting from the Bush tax cuts. I guess he just didn't say when.

http://money.cnn.com/2008/06/11/news/economy/candidates_taxproposals_tpc/index.htm


I think it's political cowardice on Obama's part to just let those tax cuts expire, rather than get rid of them now.

[Kdillard]

7. From what I remember during the campaign that was one of the

major differences between him and McCain. McCain wanted to keep the tax cuts and would have extended them. Obama would let them expire and not renew them. I don't see why he would want to try to get Congress to rescind this when they are going to expire anyway. I feel he has more important battles ahead.

[paulk]

8. the worst of the Bush tax cuts don't expire until Jan, 2011

by "worst", those aimed at the wealthiest Americans

The Income Tax: Rates will increase between 3 and 4.5 percentage points in each bracket on January 1, 2011.
The 10 Percent Bracket: The bracket will be eliminated on January 1, 2011, raising the income tax burden of many workers by 5 percentage points.
The 15 Percent Bracket for Joint Filers: On January 1, 2011, the upper limit of this bracket will shrink from 200 to 167 percent of the upper limit of the 15 percent bracket for single filers, creating a marriage penalty.
The Estate Tax: The top rate for this tax will increase to 60 percent on January 1, 2011, and the value of an estate exempt from taxation will shrink to $1 million, which is less than it is today.

They should be rescinded for two reasons, IMO -

Because it's the right to do and because those tax cuts represent a whole lot of money that, considering how much debt we're racking up, we need. I think this is an important battle, and considering how much Obama's "more important battles ahead" are going to cost, I, quite frankly, do not understand why he is unwilling to fight this battle.