Blog Critique

In the blog, The Real Threat to the economy next year isn’t thefiscal cliff; the author simply states that no matter who wins the election who wins the government budget will do us a lot of harm economically. Those leaders in both parties have been silent about the expiration of payroll tax holiday. That would create a significant tax increase for many middle class income earners, but it would help reduce the deficit by $100 billion or more next year. If Obama wins the election the Democrats will force the House Republicans to end the Bush tax cuts for high income earners, which will bring tens of billions of dollars out of the economy and into the Treasury. This would help stall unemployment. That is only based on Okun’s law a rule of thumb that allows them to estimate how changes in GDP will impact employment. The estimates don’t take into account that certain budget cuts hit the economy harder than others.  Obama says that the most frightening of the tax cuts is payroll tax cuts, because it’s a lot of money and most of that money goes to people who need it.  In the end it scares a lot of the senior lawmaker because you are threatening sudden austerity, and the lapsing payroll tax cut. Brian Beutler, the author, is TPM's senior congressional reporter. Since 2009, he's led coverage of health care reform, Wall Street reform, taxes, the GOP budget, the government shutdown fight and the debt limit fight. I feel like he is trying to tell the middle-class and low class earners to watch out for next year. And that she feel we should be prepared for the worse. She is arguing with the fact that the ones who are going to be most affected next year by tax cut are going to be those who are the middle-class families. And that the rich no matter how high the tax is they will always find a way around it so it will accommodate them.  I completely agree with him about how the government is still making those who are working hard into more and more dept. but then again he also stated that it would many who are unemployed. But who knows what will happen next year. To me he has a bunch of persuasive facts but how would we know until then. So I guess right now we will just sit, wait, and hope for the best.