Tax Hikes Deferred!

Minutes ago, the House of Representatives passed a tax relief bill that would keep current tax rates in effect for two more years. While this simply will give the country a problem to deal with in 2012, it provides two years of tax relief that can help the economy recover.

As readers of this blog know, The Report is not the biggest fan of President Obama. However, the President deserves recognition for listening to the will of the American people, and working with the Republicans against the wishes of far-left liberal Democrats who wanted the "Bush tax cuts" to expire, resulting in the poorest Americans experiencing a 50 percent tax hike during a recession with high unemployment. The Republicans also deserve credit for forcing Congress to prioritize tax relief by refusing to allow any other legislation to pass until a tax relief bill came through. Finally, those moderate Democrats who put the will and interest of the American people before political ideology deserve credit for casting votes in favor of the tax relief bill.

The implications of the tax relief bill passing will be noticed tomorrow morning. When the New York Stock Exchange opens, expect to see stocks move upwards. Had tax relief failed, the bears would have taken over the market. There would have been major selling, as people fear the economic damage that a lack of tax relief would cause and also would look to take profits before capital gains tax increases. However, because of persistence and compromise, the American people have been spared tax hikes for at least two years.