Thursday, September 30, 2010

What really helps the economy is still a question.....?

An editor at CNN, Diane Lim Rodgers, argues in "Tax cuts not the way to fix economy" that recent Obama's proposal letting Bush tax cuts expire for wealthy is unfair and doesn't help the economy in long run. In contrast, Obama supports the extension of $2.2 trillion tax cuts for "middle class" is going to hurt the economy even more. What favors Obama's proposal toward the Bush tax cuts to expire is the hope that individuals getting the tax cuts would seek investment as an option to stimulate the economy. Rodgers opposed the actual reasoning behind the tax cuts.

She argues that Obama expiring $700 billion tax cuts for wealthy is a proposed solution to fix the economy but extending $2.2 trillion tax cuts for "middle class" is yet another deficit for a long term. In a short term it's a bit unhealthy to raise taxes on poor when the income is declining but taking money from the rich is just as unhealthy and discriminating.

I am somewhat in agreement with Rodgers that proposed tax cuts isn't going to help much in fixing the economy for long run but my reasoning is that rather give poor tax breaks government should implement a system to use the tax cut money for the sole purpose of investment to help stimulate the economy. My proposal is to create a system that enforces the money from the rich to be used to create more jobs. I totally opposed the discriminatory tax cuts among the rich and the poor but a system to enforce rich create more jobs for poor is helping the society as a whole thus; it is not a discrimination.

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