Keep the Cuts

It appears almost entirely obvious that the Obama Administration is going to urge Democrats in the House of Representatives to extend only the middle class portions of the Bush Tax Cuts, allowing those for higher earning Americans to die away in January 2011. While the National Alliance Foundation respects the desire for each president to impose their ideological beliefs on the nation, this does not justify the insensitive and reckless decision to change the tax code in th heart of a national recession.

Whether one agrees that the current system is fair or grossly not so, it is irresponsible to radically shift the structure on which our market economy is presently based. On the first tier, the move is hypocritical seeing how the president has campaigned against the tax cuts "only for the richest 2% of America." In fact, the Bush system did cut taxes on the poor and middle class, albeit not as voluminously owing to the lesser incomes of these individuals. Since then, the economy has grown considerably, only halted by poor regulations for financial institutions and of the course the two Middle eastern wars.

Perhaps more crucial however is the support which those cuts give to our economic state as a nation. Hold anti-corporate views or not, but our present globalist structure of trade is fused with powerful companies, not simply government institutions or the middle class. Cutting  that line of support to the companies which supply most American  jobs will not move the economy away from its recession, but simply bring it to a damage laden standstill. If one considers the tax cuts which will expire, for individuals who have income of more than $250,000 per year, they clearly do not account for most small business owners. Even a small cafe, independently owned, will bring in close to $300,000 each year, losing out on the tax benefits.

At its core, our economy is remaining structured because of the very tax cuts made in the early 2000s. Severing them as a means of growth will not help stem a movement towards exiting our receding markets; instead exacerbating the issue.

Ideology may drive politicians as they campaign for power, but responsibility must come before all else once they have ascended to it. Modifying the tax cuts is a decision which will invariably affect the lives of countless American college graduates and business owners tremendously, so it must be done in a calculated and wise manner. Maintaining the present cuts is the only way to accomplish this, and the most effective manner in which to protect our nation's economy.

John Lai

National Alliance Treasurer and Comptroller General