Expect EVERYONES taxes to increase when the Bush Tax Cuts Expire...

101lifts2 · 09-17-2010, 12:06 AM

http://news.yahoo.com/s/ap/20100916/...ge/us_tax_cuts

Expiring tax cuts hit taxpayers at every level

WASHINGTON – 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Taxes on capital gains and dividends were reduced, while the federal estate tax was gradually repealed, though only for this year.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.

More than half the country backs raising taxes on the richest Americans, according to a new Associated Press-GfK Poll. The survey showed that by 54 percent to 44 percent, most people support raising taxes on the highest earners.

In a breakdown of the numbers, 39 percent agree with Obama, while 15 percent favor raising taxes on everyone by allowing the cuts to expire at year's end. Still, 44 percent say the existing tax cuts should remain in place for everyone, including the wealthy.

While Obama's plan would spare about 97 percent of tax filers, it would mean big tax increases for the wealthy.

Under Obama's plan, a family of four making $325,000 a year would get a tax increase of $5,400, while the same family making $1 million a year would get a tax increase of $56,300, according to the analysis by Deloitte Tax.

A family of four making $5 million a year would get a tax increase of $325,600.

Pelosi said the nation cannot afford to extend tax cuts for top earners.

"I see no justification for going into debt to foreign countries to underwrite and subsidize tax cuts for the wealthiest people in America," Pelosi said.

Making all the tax cuts permanent would add about $3.9 trillion to the national debt over the next decade, according to congressional estimates. Obama's plan would cost a little more than $3 trillion over the same period.

Homeslice · 09-17-2010, 12:33 AM

Good, then maybe people will finally start realizing there's a cost to all these military adventures and bank bailouts, and start telling their leaders enough is enough.

101lifts2 · 09-17-2010, 01:00 AM

Quote:

Originally Posted by Homeslice

Good, then maybe people will finally start realizing there's a cost to all these military adventures and bank bailouts, and start telling their leaders enough is enough.

Um...yeah but the country is in a recession....so....my crystal ball says that revenue will actually decrease.

That and the fact that the Dems will just spend MORE...not pay down the debt. Silly Homeslice.

Captain Morgan · 09-17-2010, 01:10 AM

Maybe Congress should look into decreasing spending. It might actually be good to spend LESS than we take in from taxes, arms deals, and whatever else the government makes money from. Gee, there's a novel idea, actually spending LESS than you make, instead of spending money you don't have.

Homeslice · 09-17-2010, 01:20 AM

Quote:

Originally Posted by Captain Morgan

Maybe Congress should look into decreasing spending. It might actually be good to spend LESS than we take in from taxes, arms deals, and whatever else the government makes money from. Gee, there's a novel idea, actually spending LESS than you make, instead of spending money you don't have.

That's basically what I was saying. The public needs to wake up and realize that all this shit the govt has been doing has a cost. Maybe higher taxes are necessary to get them to realize that, and get angry about it.

101lifts2 · 09-17-2010, 01:23 AM

Quote:

Originally Posted by Homeslice

That's basically what I was saying. The public needs to wake up and realize that all this shit the govt has been doing has a cost. Maybe higher taxes are necessary to get them to realize that, and get angry about it.

I think most Americans do not want to be in wars constantly. However, the other side of the coin is less money in your pocket spent on "other things" if you vote for Democrats. Does it really matter what the government spends its shit on as long as I don't pay that much in taxes?

pauldun170 · 09-17-2010, 02:16 AM

LeeNetworX · 09-17-2010, 08:48 AM

snobuny · 09-17-2010, 10:09 AM

Just remember Obama quit taking as much out of your checks also.....part of the stimulus! They decreased withholdings to increase the amount in everyones paycheck to make it look like you are bringing more money home and hopefully spend more.

If the tax increases go into effect and you don't watch your withholdings closely you could be left holding the bag come tax time in spring of 2012......a nice check needed to be written to Uncle Sam may come your way. I got hosed for 2009 (spring 2010)!

Used to be you were safe just claiming zero on your W2.....not anymore! I have to say I am sick and tired of having to cut back on everything and my taxes just keep going up and up and up!

09-17-2010, 12:06 AM	#1
101lifts2 WSB Champion Join Date: Nov 2008 Location: Anaheim, CA Moto: 2009 Kawi ZX6R Posts: 5,570	Expect EVERYONES taxes to increase when the Bush Tax Cuts Expire... http://news.yahoo.com/s/ap/20100916/...ge/us_tax_cuts Expiring tax cuts hit taxpayers at every level WASHINGTON – 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. More than half the country backs raising taxes on the richest Americans, according to a new Associated Press-GfK Poll. The survey showed that by 54 percent to 44 percent, most people support raising taxes on the highest earners. In a breakdown of the numbers, 39 percent agree with Obama, while 15 percent favor raising taxes on everyone by allowing the cuts to expire at year's end. Still, 44 percent say the existing tax cuts should remain in place for everyone, including the wealthy. While Obama's plan would spare about 97 percent of tax filers, it would mean big tax increases for the wealthy. Under Obama's plan, a family of four making $325,000 a year would get a tax increase of $5,400, while the same family making $1 million a year would get a tax increase of $56,300, according to the analysis by Deloitte Tax. A family of four making $5 million a year would get a tax increase of $325,600. Pelosi said the nation cannot afford to extend tax cuts for top earners. "I see no justification for going into debt to foreign countries to underwrite and subsidize tax cuts for the wealthiest people in America," Pelosi said. Making all the tax cuts permanent would add about $3.9 trillion to the national debt over the next decade, according to congressional estimates. Obama's plan would cost a little more than $3 trillion over the same period. __________________ Train Hard Ron Paul - 2012 Mark of Excellence GM

09-17-2010, 12:33 AM	#2
Homeslice Elitist Join Date: Nov 2008 Location: SF Bay Area Moto: Gix 750 Posts: 11,351	Good, then maybe people will finally start realizing there's a cost to all these military adventures and bank bailouts, and start telling their leaders enough is enough.

09-17-2010, 01:10 AM	#4
Captain Morgan Let's do another U-turn Join Date: Feb 2008 Location: Indiana Moto: 2009 V-Strom Posts: 3,816	Maybe Congress should look into decreasing spending. It might actually be good to spend LESS than we take in from taxes, arms deals, and whatever else the government makes money from. Gee, there's a novel idea, actually spending LESS than you make, instead of spending money you don't have.

09-17-2010, 08:48 AM	#8
LeeNetworX SFL Expatriate #1 Join Date: Nov 2008 Location: ATL Burbs Moto: '09 Triumph Speed Triple Posts: 4,712

09-17-2010, 10:09 AM	#9
snobuny Kneedragger Join Date: Nov 2008 Location: michigan Moto: 01 kawa 600R, 03 636 track, yz250motard Posts: 155	Just remember Obama quit taking as much out of your checks also.....part of the stimulus! They decreased withholdings to increase the amount in everyones paycheck to make it look like you are bringing more money home and hopefully spend more. If the tax increases go into effect and you don't watch your withholdings closely you could be left holding the bag come tax time in spring of 2012......a nice check needed to be written to Uncle Sam may come your way. I got hosed for 2009 (spring 2010)! Used to be you were safe just claiming zero on your W2.....not anymore! I have to say I am sick and tired of having to cut back on everything and my taxes just keep going up and up and up!