I did not raise one tax, not one!Posted by Arch Dixon @ 9:24 am
That’s what Obama will say. And technically he may be right. But he’s going to let a lot of tax cuts expire.
The targeted tax provisions were enacted under the Bush administration’s Economic Growth and Tax Relief Reconciliation Act of 2001. Among other things, the law lowered individual tax rates, slashed taxes on capital gains and dividends, and steadily scaled back the estate tax to zero in 2010.
If the provisions are allowed to expire on December 31, the top-tier personal income tax rate will rise to 39.6 percent from 35 percent. But lower-income families will pay more as well: the 25 percent tax bracket will revert back to 28 percent; the 28 percent bracket will increase to 31 percent; and the 33 percent bracket will increase to 36 percent. The special 10 percent bracket is eliminated.
Investors will pay more on their earnings next year as well, with the tax on dividends jumping to 39.6 percent from 15 percent and the capital-gains tax increasing to 20 percent from 15 percent. The estate tax is eliminated this year, but it will return in 2011 — though there has been talk about reinstating the death tax sooner.
Aptly phrased I think
Middle-class families also will find fewer tax breaks available to them in 2010 if other popular tax provisions are allowed to expire. Among them:
Taxpayers who itemize will lose the option to deduct state sales-tax payments instead of state and local income taxes;
The $250 teacher tax credit for classroom supplies; The tax deduction for up to $4,000 of college tuition and expenses; Individuals who don’t itemize will no longer be able to increase their standard deduction by up to $1,000 for property taxes paid; The first $2,400 of unemployment benefits are taxable, in 2009 that amount was tax-free.
Teachers should stop using their own money to supply the classrooms and tell little johnny and sally that it’s Obama’s Fault.
Parents should make their college kids get a job and some burger joint to make up for the taxes they have to pay for their tuition, tell them it’s Obama’s Fault
The Unemployed should know who’s fault it is they have to pay taxes on the benefits they receive, it’s Obama’s Fault.
The parallel is striking though.
These were tax cuts put in place by the Bush Administration during the last decade. those tax reductions helped led to some of the strongest growth this nation had (in spite of the speculative bubble that was created by relaxing investment rules). So we are now in an unprecedented economic downturn, and instead of taking the example from History of how tax cuts generate growth. The liberal leadership want to tax and spend us to prosperity. Well they have been trying this for 2 years now, hows that working out for us?