Tax Cuts who are they for?

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President Obama wants to extend the tax cuts for those making $250,000 or less a year. He will not keep the tax cuts for the wealthy. There are problems with this. 1. President Obama stated repeatedly during the election that the Bush Tax Cuts were only for the rich. What is the point of keeping the tax cut for the middle class if they were only for the rich? 2. The tax cuts were not aimed at the rich or poor but aimed at the people who were working and earning an income. There is a difference between wealth and income. The US tax code taxes income not wealth. 3. The more taxes collected the less money people have to spend on goods and services. 4. The high income earners will get more dollars in tax savings because they pay more in taxes. The percent of tax savings is greater at the lower income wage earners. Under the Bush Tax Cuts those having taxable of income of $20,000 or less received a 50% tax reduction (15% vs 10%) while the high wage earners with taxable income above $171,000 received a tax reduction between 11% and 15% 31% to 28% tax rate to a high of 39.6% to 35%) http://www.moneychimp.com/features/tax_brackets.htm So it seems that the working poor got the biggest tax reduction and not the working rich. The wealthy - non working but with a family inheritance will be paying inheritance tax after January 1, 2011. If you have $1,000,000 in assets you will also be taxes on those assets upon your death after 1-1-2011. Assets include your house, second home, retirement account, and personal property (cars, boats etc) which in today's markets will include many people nearing retirement age as you pay own you home and have a high value in your retirement account. Small business will be extremely hurt because you have to raise the cash and pay the tax even though you wealth is in non cash items. People often sell at a loss just to pay the government and then have less wealth afterwards to live on.