Taking a Hike Up the Fiscal Cliff:
Many of us have heard of, if aren’t entirely familiar with, the Fiscal Cliff Deal that Obama passed this past January, but many of us seem to have forgotten about the Bush Tax Cuts. We know that this year, our taxes went up 2%, but while many individuals think of it as a tax hike, it is actually the end of an era of tax cuts. See, back in 2001, President George W. Bush began to slowly phase in reduced income tax rates in order to bolster an economic recession that had its roots in Clinton’s presidency. The goal of the tax breaks was to create a stronger foundation for future growth.
By 2003, it was clear that the slow-going way in which Bush was trying to introduce the tax cuts wasn’t helping the economy any. So, not one to give up, President Bush, with Congressional Approval, decided to speed up those rate reductions, to lower rates on capital gains and to get rid of the estate tax altogether. It was at about the time that he made these changes that the economy began to show significant signs of growth.
The Bush-era tax breaks were supposed to be permanent improvements to the tax system, but even though they were granted a two-year extension, they were forced to an abrupt end by the approval of 2013’s Fiscal Cliff Deal. When the Fiscal Cliff Deal was proposed by the Obama administration last year, it was met with so much resistance that there was talk of it not even going through – which, even though that’s what many people wanted, wouldn’t have helped our economy any. However, during the final hours of 2012, it was approved, and Americans across the nation began to prepare for the worst – the worst namely being the 2% tax increase.
But now, it’s actually looking as if the Fiscal Cliff Deal wasn’t all-bad. With our country boasting over $700 billion of debt, experts are starting to weigh in, with some being so bold as to say that the extra 2% can really help to turn this economy around. Read on to find out what the experts are saying: http://bit.ly/14sW0x8