Comments about ‘Utah's chief economist: Letting tax cuts expire could leave $2 billion hole in Utah economy’

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Published: Thursday, Dec. 6 2012 6:10 p.m. MST

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Timothy
Benton City, WA

Why is it stunning and irresponsible to tell the truth..President Obama has said repeatedly,for well over a year,that he is not going to sign anything that involves allowing the uber-wealthy to retain their lucrative tax rates..Contrary to what many say,this wealth does not trickle down to create jobs and opportunities for the working class..Well,maybe Maserati and Porsche dealers..If it goes over the cliff it goes over..We will all be paying more taxes,including the rich that Republicans are protecting..At any rate,if it happens,Utahans will have only themselves to blame..They elected quite a few of these uncompromising political zealots and in my view they deserve what they get..

Truthseeker
SLO, CA

The Bush tax cuts would not have passed without an expiration date. The deficits created by the tax cuts will keep adding to the debt.
Obama compromised when Republicans won in 2010 and extended all the tax cuts for another 2 years. Time for Republicans to compromise.

As for "small businesses being hurt:"

In 2011, the Treasury Department’s Office of Tax Analysis took a more in-depth look at the issue using a more realistic definition of “small business” and it shows that more than 90 percent of small-business owners wouldn’t be affected by Obama’s proposal to raise taxes on individuals making over $200,000 and couples making over $250,000. Moreover, about 80 percent of those who would be affected by the tax increase are not small-business owners.

Only 8 percent of small-business owners have income of $200,000 or more. So 92 percent of small-business owners wouldn’t be affected by Obama’s proposal.
(Fact check)

Screwdriver
Casa Grande, AZ

White House wants, according to Secretary Geithner, if they don’t get their way."

If the majority of the senate vote for something they're supposed to get their way.

Republicans have been blocking the majority with filibusters for 4 years. Let's not talk about "not getting your way", especially when so many republicans want to succeed from the union as a result of the presidential election.

Impartial7
DRAPER, UT

Utah's chief economist? How about Utah's chief alarmist?

patriot
Cedar Hills, UT

If were just the Obama zombies and the rest of socialist America that had to suffer from Obama-nomics I would say knock yourself out - you get what you deserve. However it is the actual working and taxing paying Americans that will suffer the most - the ones who are supporting the rest of welfare bums and that is what is so unfair. America will be drained by the do-nothings and once the 250k and above crowd have been drained then Barack will lower the bar to include the 100k and above crowd and suddenly they will become the evil rich.... and so on down to 75k and 50k etc... This is exactly how communism works and liberal Americans are too ignorant to even know what is happening to their country and their future.

patriot
Cedar Hills, UT

re:Truthseeker

Any idea what happened in 2007 when the Bush tax cuts were instituted? The US had its BEST tax revenue year. LOOK IT UP!!! Want to know why?? What happened when small/medium business got the tax BREAK - they hired more TAX PAYERS. Get it?? It's called capitalism. Of course your socialist model is built on the wealth redistribution model and what a model it is - look no further than Greece. You can tax the rich at 100% if you like and the ONLY thing that goes up is unemployment. These are freshman college economics facts Truthseeker and I honestly think you know better. Answer me this - why in beginning of 2011 when the economy was lock step what it is today with unemployment numbers and supper slow qtrly growth did Bill Clinton AND Barack Obama say that raising taxes would increase unemployment? Now here we are less than 2 years later and now it is Ok to raise taxes? Huh??? The reason has nothing to do with economics and everything to do with socialist ideology to attack success and redistribute wealth. Watch what happens to unemployment as taxes are raised over the next 2 years. Ugly!

lost in DC
West Jordan, UT

Timothy,
Lucrative tax rates? Those who pay NO federal income taxes are the ones who have lucrative tax rates. That is about 47% of us. The "uber wealthy" are about the only ones PAYING taxes. That does not seem lucrative to me.

My2Cents
Taylorsville, UT

A lot of contradictions and misunderstanding already and letting this bush program expire is one of the best things to happen to the economy and SSA, medicare, and medicaid. With the expiration of the plan people will be paying more SSA taxes, medicare, and medicaid premiums without even have to create any more tax laws to fund these programs being depleted by our president and congress.

Its best for the country to let this plan expire put a crunch on state government expectations of pork funding the state government and legislators chose to enact laws and programs as permanent dependents of temporary funding, then they deserves this painful and unpopular task of putting some priorities and caps on state funded aid programs.

Now face the citizens of Utah for neglegence and fraudulent actions knowing the consequences. Welfare programs should be declared temporary with a cap and time limit they can be used by individuals or family, it should not be a permanent escalating cost or expense of the tax payers.

And who will be forced to suffer this loss of federal aid? The taxpayers, or private business & UTA the governor promised payment of billions of dollars from welfare funds?

christoph
Brigham City, UT

Taxes were raised in the 1990's and it made the rich become richer; a lot of money was made in the 1990's. We haven't had many tax increases in ten years; this article could also mention the good it will do: pay down debt. Yes, we should also reform tax code and medicaid and medicare.

PCRes
Park City, UT

unbelievable...ALL of you liberals who think raising taxes is a reasonable solution to the debt issue, or any issue for that matter, please take a deep breath and use your intelligence. Spending IS the ISSUE. Making millions of people depend on a free ride from someone else is the essence of this entire problem. We need to allow you to pay more if you like. Some of us already pay 50% of what we make...what is fair or wise in this equation? Raise our taxes and we are going to lay off more people and spend less. Watch what that does for your socialist welfare program...good luck.

funny_guy
Vacaville, CA

How could taxes go up for 99% of Utah taxpayers when nearly 50% pay no taxes? Let government go over the "fiscal cliff," maybe voters would then wake up and stop placing their "hope" in the government. Utah's economy should be independent and not depend on the fed anyway.

Aggielove
Cache county, USA

Own it.

JoeBlow
Far East USA, SC

PCRes,

Hows is this for intelligence.

How about we trim spending. And any meaningful spending cuts must begin with the largest spending categories.

Some from SS
Some from Medicare and medicaid
some from defense

Then we cut a few deductions. Maybe we stop giving tax credits to oil companies.
Then we raise tax rates from the lowest levels in 60 years.

We will not fix the problem by focusing on one single area.

It is immensely obvious to me, and to most.

"Some of us already pay 50% of what we make" That is something that I cannot believe. You may want to talk to Mr Romney.

Under Reagan, the top tax rates were mostly around 50%. We hear constantly about the prosperity and job creation under him.

Why was 50% GREAT under Reagan, but 40% is socialistic under Obama.

The great mystery.

Oh, and Corporate taxes? Effective, repeat EFFECTIVE corporate tax rates are the lowest in history.

utahboni
Ogden, UT

The Utah delegation is on the side of obstruction and non-compromise. The state of Utah should just send them the bill for damages.

JimLynch
King George, VA

This tax "increase" is simply returning the tax rates to where they were in the 1990s. Were those bad years? Don't think so. It was always Bush's plan to have his tax cuts expire so let 'em expire. As far as the $250K and small business goes, remember that that is $250K of PROFIT. Any small business that makes in profit $250K can afford a few bucks more in taxes.

mohokat
Ogden, UT

They knew this was coming and did nothing. A leader would have tried to head this off. The so called leader we have did nothinng as he is not a leader. Obama wants this so called going over the cliff to happen. He would get his tax increases, He would get slashing the defense budget, He could blame the Republicans, and after innaguration ride in on a white horse and propose middle class tax cuts. This is a win win for him. He is all about Obama and nothing about the Country. Believe it.

JoeBlow
Far East USA, SC

"How could taxes go up for 99% of Utah taxpayers when nearly 50% pay no taxes?"

Totally incorrect.

Many people pay no Federal Income tax. All working people pay payroll taxes of 10-15%

As well at sales tax, property tax etc.

Still Blue after all these years
Kaysville, UT

Why are we talking about taxes? The problem is SPENDING! Cut the spending $10 Trillion over 10 years, and then we can talk about taxes. With the so-called Bush tax cuts in place - I say so-called because they are the rates before Clinton raised the rates in the 90's - revenues to the government were never higher. Spending is the problem - defense, SS, Medicare, other entitlements, waste, foreign payments, all of it. Cut that! (and before anyone says that the economy did well in the 90's with higher taxes - Clinton had the good luck of the greatest economic boom ever driven by high tech; we'll not be that lucky again in our lifetimes)

  • 8:24 a.m. Dec. 7, 2012
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JWB
Kaysville, UT

Government spends because they have the funds. They hire people because they have the funds to program more jobs and add even more jobs to justify the people they have hired to do the more programs that they have made. It is a never ending circle that keeps on increasing in radius, diameter and circumference. The ends justifies the means in government and bureaucracy. The federal government increases their partnership to the states and the states either spend it or lose it. If the states don't spend the federal money, then the state potentially criticized for not being at least as effective as the federal program. No one wants to be the one that doesn't hire a new person to continue on the circle of self-aggrandizement. If you hold back on salary increases, employees will complain that you are not giving them their fair share. As a state partner with the federal programs, employees can file a complaint with the federal monitors and then the review process starts once again. The federal people like that part as it gives them more justification for monitoring state programs.

The Governor knew of the potential cliff jumping.

Itsjstmeagain
Merritt Island, Fl

The economy runs on the movement of dollars. You buy a product and that creates a sales position, a manufacturing job, transportation (trucking) job and each of those people do the same. That creates jobs. The dollars flow through the economy. This engine is fuled by the middle class and the disadvantaged to the best of their ability.

The $250K and above do buy products and services too, but much of the 'disposable' income go into the stock market, offshore accounts or other financial instruments. The dollars are removed from circulation. The fact that Capital Gains is taxed only 15% if not reinvested bleeds revenue from the economy. The stock market is not investing for jobs, simply exchanging paper between people now. Those dollars are out of circulation and suppress the economy. The real investment creating jobs were bought years ago for the real investment

I think the answer is let the tax gift expire for all and let the new Congress make the changes.

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