Republicans want to extend the expiring Bush tax cuts that benefit the very wealthiest Americans. But they also know that "tax cuts for the rich" doesn't make for good politics. That's why they keep insisting that extending the cuts is necessary for the economy.
Given the economy’s present weakness, some argue that now is not the time to allow the 2001 and 2003 tax cuts for high-income households to expire. But analysis in a recent CBO report decisively refutes this argument. CBO examined 11 options to stimulate growth and job creation and found that extending the 2001 and 2003 tax cuts in general came in last in effectiveness. CBO concluded that a job-creation tax credit, funds to help states balance their budgets with fewer cuts in services and tax increases, and extended unemployment insurance benefits would all generate more jobs and growth on a dollar-for-dollar basis.