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for all, since the only way to win Republican support for the extensions is to include the break for the upper-income taxpayers. "By pushing an extension for one group of taxpayers and not the other, you reduce the possibility of it being passed," Riccadonna said. "We don't need to raise taxes in the short term.When unemployment is down to 6%, we can talk about phasing out these tax cuts, even though that could be a while." Russell Price, senior economist with Ameriprise Financial Services, is one of those who agrees withthe Obama administration proposal, saying it balances the need to deal with deficits while at the same time keeping most of the stimulus in place.Bush era tax cuts are key to the economyAPMonday, 9 Jul 2012()The Bush-era tax cuts are due to expire at the end of the year unless Congress votes to extend them. Economists worry that across-the-board tax increases, along with automatic spending cuts also scheduledto take hold at year's end,could be a blow to the shaky U.S. economy. Obama has made what he calls "tax fairness" a key feature of his campaign for re-election on Nov. 6, repeatedly urging Congress to make the tax cuts permanent for families making less than $250,000 a year. The tax cuts enacted by Obama's Republican predecessor, George W.Bush, will expire on Jan. 1 without congressional action, part of a so-calledfiscal cliffthat potentially could hit the U.S. economy alongside deep automatic spending cuts. Analysts warn the impact of rising taxes and lower federal spendingcould tip the economy back into recession.Tax cuts essential to economic successMurphy, 09– Ph.D Economist and Member of Pacific Research Institute (Robert, “Cut Taxes for the Right Reasons”, Ludwig Von Mises Institute, 2/16/12, )//WS. Why Tax Cuts Are Better Than Government SpendingLet me be clear: I wholeheartedly agreethat it makes much more sense for the government to cut taxes, rather than spend money, in order to improve the economy.But what I have been arguing is that the reasonfor this superiority is not, "Let taxpayers spend money and create jobs rather than the politicians." But if job creation from spending is a bad argument, what are the valid reasons for supporting tax cuts? First is the simple moral argument. That money was earned by the taxpayers, and so prima facie it is always a good idea to take (i.e., steal) less from them. Second there is an incentive argument. Especially if the tax reduction comes in the form of lower marginal rates (rather than lump-sum rebates), then individuals have the incentive to produce more. Notice that this is the exact opposite of the standard Keynesian analysis. In other words, the pragmatic argument for tax cuts isn't to give consumers moremoney to go buy stuff, but rather it's to give producers the incentive to go make stuff. In conclusion, the critics of the nearly trillion-dollar "stimulus" plan are certainly correct to call for tax cuts rather than more government spending.