Let the Bonus Tax Cuts for the Top 2 Percent Fade into the Sunset

Conservatives insist on extending the bonus tax cuts enacted in 2001 for the top 2 percent of income earners. They also make clear that they will hold up tax relief for the middle class to get their way. President Barack Obama, progressives, and fiscally responsible members of Congress should stand firm. This month’s electoral “shellacking” changed the political landscape in Washington. But it didn’t change three basic facts about the bonus tax cuts for the rich:

■These tax cuts haven’t and won’t create jobs.
■They would blow an enormous hole in the budget.
■The American people want them to expire.

Additional tax cuts for the top 2 percent won’t create jobs

Weak economic growth, a weaker job market, expiring unemployment benefits, and state budget shortfalls all threaten to stall the economic recovery. And they call for decisive action to restore consumer demand, growth, and jobs. At the same time, there is great concern about federal budget deficits. The United States does indeed face long-term structural budget deficits that will need to be addressed in time.

The right response to coping with the need to create jobs now and deal with our fiscal problems is to pursue measures that pack a big short-term punch but carry relatively few long-term costs, even if they add to the deficit now.

Extending the bonus tax cuts for the wealthy does the exact opposite. It would provide far less economic boost now relative to almost any other legitimate option, but it comes at a huge long-term price: $80 billion over the next two years and $690 billion over the next decade.

http://www.americanprogress.org/issues/2010/11/bonus_tax_cuts_fade.html

Up front instead? A one time injection for now and receipts up in the future in a completely equitable way.

it's all about the deficit ain't it?