Facts Surrounding the Tax Cut Issue

I have read it in the news that recently, Vice President Joe Biden had a roundtable discussion with small business owners and workers to talk about the Bush Tax Bill which would expire December of this year. Once again, the Democrats and Republicans go head to head over this issue and entrepreneurs start to be fearful of what the effect on the business sector would be. There are numerous blogs which discusses why the author is for or against the tax cut bill. Instead of adding to fuel to the fire, I will just be jotting down the facts I gathered from the news and will let you, my readers, express your own opinions on this matter.
  1. In an attempt to lower the unemployment rate, the Obama administration seeks approval for the Small Business Jobs Act which means that there would be tax breaks and a $30 billion lending fund available for small businesses.
  2. Republicans are convinced that once the tax cut expires, it would mean that small businesses would be affected.
  3. Tax breaks would not be given to families earning over $250,000 a year and individuals earning over $200,000 a year.
  4. Democrats are advocating a plan to permanently extend tax cuts which would benefit the middle class while renewing the Bush Tax Cut until the end of 2011.
  5. According to an estimate by the Congressional Budget Office, if the tax cuts are to be extended, it would cause an additional $3.9 trillion to the national debt over the next decade.

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