December 3, 2010

For lower unemployment, extend the Bush tax cuts

Antony Davies

Senior Affiliated Scholar
Summary

The numbers released today show unemployment rising, and in order to see improvement with future numbers, Congress needs to extend the Bush tax cuts.

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The numbers released today show unemployment rising, and in order to see improvement with future numbers, Congress needs to extend the Bush tax cuts.

Passing the tax cuts for people earning less than $1,000,000 is better than nothing, but it presents a false picture. The real action comes from the people who are poor.

For the person who is currently earning $50,000 a year and is thinking about starting a business and hiring new workers, he’s not thinking about what his tax rate currently is, but thinking about what it would be if he became rich.

If he sees that he’s going to be punished for taking the risk, he’s going to sit back and continue working for someone else. We don’t want to dissuade people from creating jobs.