Tax Cuts-what Tax Cuts?

Many of the jobs in President Bush’s “recovery” are low-wage,
low-benefit service and retail jobs The overall growth in jobs
masks a harsher reality for families trying to maintain or build
a middle class standard of living Key among them: debt coupled
with paycheck paralysis Most people coming out of college with
or without a degree are starting life off with about $20,000 in
debt trying to get a degree Then they try to support themselves
on low wages after getting out of school A generation ago
finishing high school was what was needed to get a job and to
have a reasonable amount of security
Now what is needed is a university degree and not just any
degree, look at all people working in low class jobs with an
arts degree
In the last 30 years compensation for somebody with a university
degree has actually decreased when adjusted for inflation
Personal bankruptcy filings nationwide last year exceeded 2
million, the highest annual level on record There were
significant increases in consumer bankruptcy filings in every
region The total of 2,043,535 was up 32 percent over the
1,552,967 filed in 2004 That translates to one in every 53
households filing bankruptcy petitions So are these 2 million
people Scofflaws? Credit counselors say the debtors coming to
their offices can’t afford to pay basic living expenses or make
even minimal payments toward their debts
Corporate profits have reached record highs People are working
longer for the same or a lesser amount of money During the
period from November 2003 to March 2004 – when job growth was
increasing – average hourly real wages actually fell by 1
percent Companies are reducing health care benefits and are
declaring bankruptcy to get rid of pension liabilities to their
employees
Yes, but there are Tax Cuts Tax Cuts have to be paid for by
somebody at some point in time If the tax cuts were financed
largely or entirely through spending cuts or: if the tax cuts
were financed through a combination of spending cuts and
progressive tax increases this is what is projected by experts:
The net result seems to be net tax cuts for about 20-25 percent
of households, financed by net tax increases or benefit
reductions for the remaining 75-80 percent of the population
So 75% to 80 % of Taxpayers are going to be worse off with tax
cuts The “losers” are going to be low- and middle-income wage
earners The trade deficit for last year is estimated to have
swollen to another record high, above $700 billion, increasing
America’s indebtedness to foreigners
At some point in time these foreigners are going to want their
money back
Then what?

Tags | bankruptcy, benefit, benefits, consumer, counselors, debtors, expenses, health, petitions, president, profits, result, spending, university