Tax on rich heals economy, spares middle-class Americans: Analyst

A political analyst says the recent US bill aimed at averting the so-called fiscal cliff will benefit the country's economy, while taxing wealthy Americans and sparing the middle-class, Press TV reports.

“That will help the economy by reducing the deficit because the taxes will go up only on the wealthy. When taxes rise on anybody, it’ll cut the spending or demand; but taxes on the wealthy people will not reduce demand so it’s a good thing for the economy,” said Ravi Batra, a professor at the Southern Methodist University in Texas.

On Monday, Republicans and Democrats reached an agreement to avert the "fiscal cliff" of automatic tax hikes and spending cuts for 2013. . .

“I think Americans will be very happy...most of them will avoid paying very high taxes,” Batra said, adding that “if this agreement is not done then on average the customer will have to pay two or three thousand dollars per year more on taxes.”

Read the full story and/or watch the interview.

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