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  • Update on Bush Tax Cuts

    Friday 12th of October 2012 4:53:27 PM

    Obama’s tax plan to expire the Bush tax cuts for top earners in 2013 opened a lot of controversies in the country. Talks about this issue crossed the doors of Republican and Democrat as it is now a national concern.

    The Bush tax cuts helped a lot of taxpayers in facing the economic crisis. This tax cut became an additional way for taxpayers to settle their difficulties in paying their taxes besides aiming for IRS tax relief. Investopedia.com even defined Bush tax cuts as a temporary income tax relief that lowers federal income tax rate, capital gains tax, rate on dividend income; decreases marriage penalty; increases child tax credit; eliminates estate tax, phase out on personal exemptions for higher income taxpayer, and itemized deductions.

    However, since Bush tax cuts run temporarily, it is still bound to end. With Obama’s plan to expire it by next year, many are not in favor due to the occurrence of higher taxes leading to the slowdown of economic growth and stiff work incentives. On the other hand those who want to end Bush tax cuts, see it as way to provide for the government’s massive budget deficits brought by the recession.

    source: money.cnn.com

     

     

     

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