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Thursday, July 22, 2010

Avoiding tax increses

Three Democrats in the Senate: Bayh, Conrad and Nelson have come out in favor of extending the current tax levels and postponing the huge tax increases scheduled for 2011. The Republicans are already on record as supporting such a move. This means that fully 44 senators would support an extension of the rates.

The resoning behind such an extension is clear; the economy is in precarious position and cannot afford the blow that the scheduled tax increases would inflict upon it. It is heartening to see Democrats come to support a move which is clearly required to keep us out of a double dip recession. Still, I do not think it likely that the Democrats will do anything about taxes prior to the end of this year. Any tax changes will likely have to wait for 2011 and the new congress.

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