For those among us who still seem to lack the ability to make a decision that even a deaf, dumb and blind man, or women, could make, here's a little something for you to further ponder as you work to make up what little mind of yours. It just might be what the doctor ordered and give you the necessary nudge in the right direction. If you happen to be a typical middle-income family making as little as $40,000 to $64,000 a year you could see your taxes go up by as much as $2,000 next year if tax cuts that set to expire at the end of the year are allowed to do so. Taxpayers across the entire income spectrum can expect to be hit with substantial tax hikes, the Tax Policy Center said in its study, with households in the top 1 percent income range seeing an average tax increase of more than $120,000, while a family making between $110,000 to $140,000 could see a tax hike in the $6,000 range. Now I don't know about any of you fence-sitters, but I'd have a hard time paying that little ransom. Look, what Barry is trying to do here, is for us to loose a little more of what little disposable income we still have.
Taxpayers at just about every income level will get slammed with increases totaling more than $500 Billion, a more than 20 percent increase, with nine out of 10 households being affected by the expiration of tax cuts enacted under both Barry "Almighty" and his predecessor, George W. Bush. The expiring provisions include Bush-era cuts on wage and investment income and cuts for married couples and families with children, among others. Also expiring is the 2 percent temporary payroll tax cut championed by Barry. The looming expiration of the large roster of tax cuts is one of the issues confronting voters in November, with the chief difference between Barry and GOP candidate Mitt Romney being the tax treatment of wealthier earners. Barry is calling for permitting rates on individual income exceeding $200,000 and family incoming over $250,000 to go back to Clinton-era rates of as much as 39.6 percent. Let's be honest here if we can, what Barry insists on doing here is hitting those small business owners who create the lion's share of jobs in our economy. But that doesn't matter to him because that's not what this is about.
Both candidates call for rewriting the tax code next year, but something tells me that we'd all be forced to hand over much more of our hard earned income under any rules that Barry would come up with than what Romney would suggest. Monday's study by the independent Tax Policy Center, deals with the immediate increases set to slap taxpayers upside the head in January under the existing framework of the tax code. Few are talking of renewing Barry's payroll tax cut, even though that would mean a tax increase for many working people. Working families with modest incomes would be hit hard as the child tax credit would shrink from a maximum of $1,000 per child down to $500. As a result, a married couple earning $50,000 with three dependent children that currently receives an almost $1,500 income tax refund largely due to the child tax credit would see their fortunes reversed by more than $3,000 next year and pay more than $1,500 in income taxes while seeing their payroll taxes go up by $1,000 if the full menu of tax cuts expire. "It's just a huge, huge number," said Eric Toder, one of the authors of the study.
Cumulatively, the country would see a 5 percentage point jump in its average tax rate, which works out to taxes on the top 1 percent jumping by more than 7 percentage points and about 4 percentage points for most people earning below $100,000 a year. Put another way, people in the $40,000-$64,000 income range would see their average federal tax rate jump from 14 percent to 17.8 percent -- or an increase in their overall federal bill of 27 percent. All told, almost 90 percent of all households would face a tax increase, though the top 20 percent of earners would bear 60 percent of the overall cost. More of that fairness Barry's always talking about. Across all households the tax increases would average almost $3,500. The expiration of cuts on capital gains and stock dividends is a key reason why wealthier people would see a higher increase in their tax burdens. While Republicans controlling the House have also called for the expiration of Barry-backed tax cuts for the working poor, including expansions of the earned income and child tax credits, all sides are calling for the renewal of Bush-era tax rates for everyone else.
Without a renewal of those Bush tax rates, a married couple would pay a 28 percent rate on taxable income exceeding $72,300 instead of the 25 percent rate they now pay. And the 10 percent rate paid on the first $8,900 of income would jump to 15 percent. The new top rate of 39.6 percent would kick in for income over $397,000. The current top rate is 35 percent rate. So for those who either simply refuse to see what's going on here, or are just too stupid to see it, if Barry was really interested in bringing in more revenue to the government, he would do what has worked every time it's been done. He would actually reduce tax rates across the board. But Barry doesn't actually view taxes as a tool for collecting revenue, to Barry, taxes as seen as a way to "spread the wealth around." Barry has a rather odd perception of what's fair and what isn't. When half of us pay nothing in taxes, the only ones he accuses of not paying their fair share are those of us who already pay the biggest share of taxes. We're simply expected to pay more. It's all about punishing the makers and rewarding the takers, the majority of whom, will vote for Barry.
No comments:
Post a Comment