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September 17, 2010
Obama Allowing Tax Cuts to Expire Hits Taxpayers At Every Level
Expiring tax cuts hit taxpayers at every level
Here's some pressure for lawmakers: If they don't reach agreement on extending soon-to-expire Bush-era tax cuts, nearly all their constituents back home will get big tax increases.
A typical family of four with a household income of $50,000 a year would have to pay $2,900 more in taxes in 2011, according to a new analysis by Deloitte Tax LLP, a tax consulting firm. The same family making $100,000 a year would see its taxes rise by $4,500.
Wealthier families face even bigger tax hikes. A family of four making $500,000 a year would pay $10,800 more in taxes. The same family making $1 million a year would get a tax increase of $52,300.
The estimates are based on total household income, including wages, capital gains and qualified dividends. The estimated tax bills take into account typical deductions at each income level.
Democrats have been arguing for much of the past decade that tax cuts enacted in 2001 and 2003 under former President George W. Bush provided a windfall for the wealthy. That's true, but they also reduced taxes for the working poor, the middle class, and just about everyone in between.
Those tax cuts expire at the end of the year, setting the stage for a high-stakes debate just before congressional elections in November. If Congress fails to act, families at every income level will see more taxes being withheld from their paychecks come January.
The tax cuts enacted in 2001 and 2003 reduced marginal income tax rates at every level. They also provided a wide range of income tax breaks for education, families with children and married couples.
Taxes on capital gains and dividends were reduced, while the federal estate tax was gradually repealed, though only for this year.
President Barack Obama wants to extend the tax cuts for individuals making less than $200,000 and joint filers making less than $250,000 in adjusted gross income. That's income from wages, capital gains and dividends, before standard deductions and exemptions are subtracted.
Republicans and a growing number of Democrats in Congress want to extend all the tax cuts, at least temporarily.
On Thursday, House Republican Leader John Boehner of Ohio said he wants an up-or-down vote on extending all the tax cuts before congressional elections in November.
"Raising taxes on anyone, especially small businesses, is the wrong thing to do in a struggling economy," Boehner said. "On the issue of job killing tax hikes the American people are not going to accept anything less than the vote that they deserve."
House Speaker Nancy Pelosi, D-Calif., wouldn't commit to vote on any tax proposals before the election. She did, however, pledge to address them by the end of the year.
"The only thing I can tell you is that the tax cuts for the middle class will be extended this Congress," Pelosi told reporters Thursday.
Wild Thing's comment.......
House Speaker Nancy Pelosi, D-Calif., wouldn't commit to vote on any tax proposals before the election. She did, however, pledge to address them by the end of the year.
Sure AFTER the November elections. How stupid does she think we are.
The tax cuts for the “wealthy” will have the most dramatic effect on the 50k family. They will have to pay 6% of income more in tax, this is the highest percentage in the examples listed.
Hopefully the November elections conservative victory results will swiftly reverse, or totally kill, the Obamatrons massive across-the-board tax increases, plotted for January 2011.
Posted by Wild Thing at September 17, 2010 04:55 AM
Comments
At this rate the economy should collapse next year, we can not sustain this onslaught on our future, there is no way to pay thie off.
Posted by: Mark at September 17, 2010 01:30 PM
If by chance they vote to continue Bush's tax cuts the Dems in turn will claim they gave us tax cuts. Even though the tax rates remain the same. Shifty bastards they are.
Posted by: TomR,armed in Texas at September 17, 2010 03:27 PM
Mark, yes it is like a speeding train on it's way to a horrible wreck the worst in history.
Tom, good point, I had not even thought of that, your right.
Posted by: Wild Thing at September 18, 2010 05:44 AM
