Tax cuts for the rich too!

The GOP recently sent a letter to the President outlining their solution to the increasing unemployment which stands a shade below 10%, the highest rate in 26 years. They outlined six specific proposals with which I agree in principle but failed to go far enough on the following proposal:

"Lower taxes for all taxpayers by reducing the current 15 percent rate to 10 percent and
reducing the current 10 percent rate to 5 percent. This will provide an immediate increase in income to every taxpaying family in America and free up capital to help small businesses hire more workers."

While I applaud tax cuts for people in these brackets, which includes me, how many of them are business owners much less ones that employ people? Low tax bracket people are employees. We may have a little more money to spend, but people in higher tax brackets would have little incentive to expand their businesses, give raises and/or higher more hands.

Those taxpayers in the higher tax brackets, such as my employer, are not specifically mentioned. Is this by design so as not to be asking for too much at once? Did the GOP forget to mention them? Certainly not. Why not be bold and go for the gold? If only these two lower rates are reduced, not every taxpayer will see an increase in income.

The higher tax rates currently stand at 25, 28, 33 & 35%. What will happen when those rates rise to 28, 31, 36 & 39.6%, respectively, in January 2011 when the "Bush tax cuts" expire?

I have heard some media outlets say that the recession is over. Others say it is waning now. Still others say the economy will recover next year. When those tax rates rise at the end of next year, another recession will result as capital is once again tied up in government hands or shifted to more friendly overseas tax environments. Government may expand, but not everyone wants to or can work for them. The public sector can only spend what they first take from the private sector. I believe even the thought of rising tax rates in 2011 will hinder investment now. If you knew of an upcoming increase in expenses, would you upgrade you cable service, buy that new car or higher another employee? Businesses must look years ahead to predict if an investment will payout so that they can stay in business and not layoff anyone.

The letter was signed by the following members of the GOP:

House Republican Leader John Boehner
House Republican Whip Eric Cantor
House Republican Conference Chairman Mike Pence
House Republican Policy Committee Chairman Thaddeus McCotter
House Republican Conference Vice Chairman Cathy McMorris Rogers
House Republican Conference Secretary John Carter
National Republican Congressional Committee Chairman Pete Sessions
Rules Committee Ranking Republican David Dreier
Chief Deputy Whip Kevin McCarthy
Congressman Roy Blunt

Employees should let them know that we want employers to get a tax cut too. The unemployed would do well to do the same if they want to work.