Income Tax Is The Divider In US Senate

Here is one glowing example of how important Income Tax is in our daily life and politics.

As a country U.S. is in a dire economic situation.

After all the news, views of political pundits that recession is over, they got a so called “shock of a lifetime” with U.S. labour market job data.

Friday’s report, states that jobs gained a mere 39,000 and the unemployment rate shot up to 9.8%, the highest rate since April.

Private payrolls gained a mere 50,000 compared to expectations of +160,000. Both jobs and the unemployment rate were worse than every single economist estimate which has me noting once again that economists as a group are sure one optimistic lot.

Economy lost jobs with the existing present reduced tax rate for all Americans, which was enacted by former Republican president in 2001 and 2003. The existing policy is not working to create jobs or revive economy.

Keeping the same policy and expecting a different result is not a realistic strategy for change. But that is what Republicans in the senate are recommending. I fail to understand how Republicans plan to reduce the deficit, create jobs and keep the Bush era tax breaks.

Income Tax has become a divider among the unity of the parties to work on a common goal. Keeping the tax cuts will definitely halt any sign of economic recovery for a long period and drag the budget deficit for many more years.

If Americans care to bring jobs back and revive the economy, its time to let all tax cuts expire for everyone. Sacrifice now for a better future. If lower income people are getting hurt by tax increase, give them a tax credit, up to a certain income. I expect Republicans will not be asking for similar tax credit for wealthy Americans.

This is a critical time in U.S. politics and economy that could impact generations of Americans.