On Wednesday the House voted a 241-181 vote to extend Tax Breaks for one year. But next year these tax breaks could be taken away. This new year of tax breaks will be offset by a rising permanent income tax that may or may not begin before the tax breaks are scheduled to expire at the end of this year.
The tax breaks have helped create jobs and have made it so that the economy could get back on its feet, but will the introduction of a higher income tax and all breaks taken away help to do the opposite?
According to the Wall Street Journal some Republicans criticize that the rise in income tax will only to be permanent to some so as to extend the tax break another year. “With the decision we are facing today, we should be encouraging business investment, not discouraging it through higher taxes,” Rep. Dave Camp (R., Mich.), said during House floor debate Wednesday.
There are many who believe this issue should be studied more so that we can understand what this kind of increase in taxes will do to the economy. I, personally, agree that we need to look into this issue more. A rise in taxes isn’t the answer. I may not know a whole lot about how the economy works but it seems that a good idea would be to first ween the economy off the tax breaks and see how it stands on its own before giving it a load to carry after its recent down fall. Hopefully congress will figure out what its doing in the next year so that we don’t witness another recession before this one is fully over.