From VB Dems
Democratic Virginia Senator Mark Warner authored an op-ed for the Financial Times on his proposal for how Congress should approach the question of what to do about the expiring Bush tax cuts. The crux of his proposal is to extend the tax cuts for the 98% of the nation with an income of less than $250,000, while shifting the lost tax revenues that would be created by extending the cuts to the remaining 2% of the nation to targeted tax cuts for businesses to spur job creation.
Warner’s proposal is a blending of Democratic and Republican concerns regarding the Bush tax cuts. While Democrats have been arguing the for expiration of tax cuts for the top 2% of the nation, Republicans have been arguing that restoring taxes to Clinton era rates for the wealthy will hurt job recovery efforts. The problem with extending tax cuts for the wealthy is that the loss in tax revenue, which contributes to the national deficit, doesn’t lead to equitable job creation or an increase in our economic strength. What it does do is increase the gap between the wealthy and all others. Instead of a blanket cut the for wealthy, a targeted cut for businesses to spur job creation will create a bigger return on investment for the nation. The money would actually create investment and job growth, instead of sitting in the bank accounts of those who didn’t need the tax cut in the first place, while those who need jobs are struggling to stay in their homes.
Just like the Bush tax cuts, we should consider Warner’s proposal to be temporary while we’re still recovering economically. This proposal is still not paid for; however, if we’re investing in job growth through targeted tax cuts for business, it may be worth the continued deficit spending in the short term.