Here are two brief videos explaining why Congress needs to extend all the Bush tax cuts that are set to expire at the end of this year rather than fall for President Obama’s proposed scheme of targeted tax credits for businesses.
First, Charles Krauthammer explains why a broad tax cut (or in this case preventing the largest tax increase in US history) is better than government giving tax credits to some businesses for a specific purpose.
A broad tax cut let’s each small business owner decide how to best use the money freed up by the government. Obama’s proposals assume that the federal government knows better than individuals how to best invest a company’s earnings.
Outside the military, when has government ever been particularly competent in allocating resources? By wasting an $800 billion stimulus plan with nothing to show for it, the Obama administration certainly has not demonstrated the ability to make wise investment decisions.
An ABC News video explains that letting the Bush tax cuts for the top income tax brackets expire would raise the taxes of almost a million small businesses:
Don’t expect President Obama suddenly to have an attack of common sense. It is highly unlikely that he will support extending the Bush tax cuts. Republicans should agree to nothing less and either wait for the Democrats to panic prior to the November election or Republicans can pass an extension of the tax cuts retroactively after taking control of Congress. If Obama then has the audacity to veto such a bill, he has effectively committed political suicide and it will be that much easier to get rid of him in 2012.
Update: Mary Matalin, another succinct voice of reason on taxes:
