Should The Bush Tax Cuts Expire? (TBT, TLT, UUP, UDN, GLD )

There is a humongous debate going on in Washington about whether to let the 2001 and 2003 tax cuts enacted by the Bush administration expire. Tech Ticker interviewed Brian Bethune to discuss this matter.

In the interview, Bethune, IHS Global Insight’s chief U.S. financial economist, goes on to say, "Any tax increase no matter what form, whether that’s personal income tax or corporate taxes, effectively creates a drag on the economy. This could really be a damper on overall spending.”

President Obama has stated he wants to keep the tax cuts in for all household earning less than $250,000 annually. In contrast, Republicans say that by allowing the cuts to expire when scheduled, this would severely weaken and put a damper on small businesses who file individual tax returns. Last week, Treasury Secretary Tim Geithner echoed the sentiments of President Obama of taking away the tax cuts for those households earning more than $250,000. On ABC This Week, Geithner said, “We need to make sure we can show the world that we’re willing, as a country, now to start to make some progress bringing down our long, our long-term deficits… I do not believe it would have a negative effect on growth.”