Extending Tax Cuts

Congress and the president are discussing whether all  income tax  rates (*) be extended  or only those affecting the middle
class and lower income earners.

In support of  extending all but the top two brackets the president defended this approach by stating this will stimulate the
economy as the middle class will spend this money. What he said to Matt Lauer....

" Republicans want tax cuts for the wealthiest Americans , you and me. You and I , Matt , you know, we're not likely to spend any additional tax cut because
 whatever we need for our families we can afford right now. What we need is tax cuts for the middle class who are struggling. And if they get a tax cut they're
 likely to spend it, which means that a small business is potentially going to get a customer and we're going to see job growth"
If you examine what the president said  you see the ridiculousness of what he believes?  How can he conclude people who are not
 spending today will spend at later date if their income is the same?

Let's walk through the illogical thinking of this belief .

Suppose a person is bringing home $600 a week today and barely can get by.  Now, lets jump to January 1, 2011 and the tax rates
for this person remains the same...which means he will still be bringing home $600 a week...and still barely be getting by.

This simple example is indicative of the thinking of not only the president, but many of the people we entrust with the
responsibility to oversee the economy and take the necessary steps with stimulation is  called for.

Feedback always appreciated...
Tony