Despite what you feel about President Obama, you have to appreciate the sheer amount of work he’s managed to get Congress to do in the few years he’s been in office. Whether or not they’re the right things to do will remain to be seen, but one topic that is sure to take center stage within the next few months, if not weeks, is what we should be doing about the soon-to-be expiring Bush-era tax cuts.
A little history for those of us who weren’t paying taxes before 2001 (that includes myself, at least on any meaningful level). President Bush signed the Economic Growth and Tax Relief Reconciliation Act of 2001 and made one of the largest tax cuts we’ve seen in quite some time. Among other things, the EGTRRA (quite an acronym) lowered every tax bracket, lowered capital gains tax, and effectively lowered the tax burden on every single American. If you remember, this was the boom years of the Internet dot-coms and the economy was doing great. As a way to make the debt and deficit math look more palatable, the cuts were given a sunset provision of December 31st, 2010.
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