$400 billion dollar tax increase proposed by the US Congress and no news reports
"The Largest Tax Increase in History. The revenue numbers in the Democrat budget
increase taxes by $392.5 billion over 5 years, compared with retaining provisions of the
2001 and 2003 tax laws that are currently in place. Taxes increase by $231 billion in
2012 alone, which is even greater than the $153-billion surplus the budget claims.
Tax Increase 5-Year Total
Increase in Marginal Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $182 billion
Reduction of Child Tax Credit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $27 billion
Increase in Marriage Penalty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $13 billion
Increase in Death Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $91 billion
Increase in Capital Gains and Dividends Tax Rates .. . . . . ... . . . . . . . . . .. . . . . . . . $32.5 billion
Other Tax Increases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $47 billion "
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Perhaps the one aspect of the proposed 2008 budget that should be of most interest to dancers is the immediate de-facto repeal of Alternative Minimum Tax relief - which will raise taxes significantly for tens of millions of 'middle class' dancers and club customers whose gross incomes exceed $75k per year. This will typically have a disproportionately bad effect in high tax rate high property value states i.e. NY, CA, IL etc. where steep state income tax rates, large mortgage interest payments, and expensive local property taxes could formerly be used as deductions to reduce one's federal tax liabilities. The AMT operates by disallowing such deductions when they begin to reduce federal tax liabilities below a certain 'minimum' percentage (which is anything but 'minimum').
"No AMT Fix. The Democrats fail to provide, in their numbers, even a one-year patch for
the alternative minimum tax [AMT]. Instead, the Democrat budget employs a “reserve
fund” that allows AMT relief only if offset by equivalent tax increases or spending cuts –
which are not spelled out."
I take it that the reason that such a huge increase in US federal taxes was not considered to be 'newsworthy' is that no new laws need to be passed which specifically call for an increase in specific tax rates. Under the 2008 budget, these tax increases take place automatically via Congress simply allowing the expiration of 'tax relief' laws enacted in prior years.
In regard to how this might break down in terms of individual tax increases, I found this ...
(snip)"The House passed a 400 Billion dollar tax increase today which will hit the middle class and small businesses like my self HARD. According to press release sent out by Minority Whip Roy Blunt (my congressman) the break down goes something like this:
* 26 million small business owners, by an average of $3,960.
* 48 million married couples, by an average of $2,899.
* 42 million families with children, by an average of $2,181.
* 12 million single women with children, by an average of $1,082.
* 17 million senior citizens, by an average of $2,270.
Thats serious stuff folks. If you are married and have kids, then by my calculations you should expect to pay $5,000.00 more in taxes. If you run a small business, like I do, expect to pay $9,000.00 more in taxes. I dont mind telling you that it hurts, and hurts bad."(snip)
from
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Re: $400 billion dollar tax increase proposed by the US Congress and no news reports
Can I assume that you also realize that the Bush/GOP tax plan also does not call for a fix to the AMT?
http://mediamatters.org/items/200702070001
Re: $400 billion dollar tax increase proposed by the US Congress and no news reports
^^^ actually, your own NY Times link states that the Bush/GOP tax plan DOES call for another one year fix for the AMT ...
(snip)"In recent years, Congress has spared many middle-class taxpayers from the AMT by passing temporary patches that have raised the exemption level at the cost of tens of billions of dollars in annual revenue. The Bush administration's new budget proposes yet another one-year patch. But the administration's long-term projections -- in which the deficit turns to surplus in 2012 -- assume that beyond FY 2008 the government will receive an increasing amount of revenue from the AMT as it affects more and more taxpayers.
The Bush administration has previously argued that a refusal to extend tax cuts represents a tax increase. For instance, in a September 21, 2006, speech, Bush warned the audience that if the Democrats gained control of Congress in the midterm elections they would not extend his tax cuts and therefore "raise your taxes":
BUSH: They may not call it a tax increase. They may want you to think something different. But if they don't extend the tax cuts that are set to expire, the working people, the small business owners, those that are struggling to put food on the table for their families, the taxes are going to go up.
Now, they're going to say -- they may not tell you they're going to raise your taxes. They're just going to say they're just going to let the tax relief expire. That's like a boss who came in and said, you know something, I'm going to let your last pay raise expire. We're not going to let it happen."(snip)
... one must assume that the Bush/GOP budget is based on the pragmatic assumption that a Democrat will be elected to the presidency in 2008 ... after which the absence of further congressional votes to 'fix' the AMT in future years is a foregone conclusion ! In that sense, the Bush/GOP five year budget projections are probably fairly accurate !
Re: $400 billion dollar tax increase proposed by the US Congress and no news reports
You apparently ignored the but..........
Quote:
Originally Posted by
Melonie
(snip)"In recent years, Congress has spared many middle-class taxpayers from the AMT by passing temporary patches that have raised the exemption level at the cost of tens of billions of dollars in annual revenue. The Bush administration's new budget proposes yet another one-year patch. But the administration's long-term projections -- in which the deficit turns to surplus in 2012 -- assume that beyond FY 2008 the government will receive an increasing amount of revenue from the AMT as it affects more and more taxpayers.
Re: $400 billion dollar tax increase proposed by the US Congress and no news reports
^^^ no I didn't ignore the 'but' ... I stated the reason for it - that the GWB/GOP budget essentially concedes that a Democratic presidential candidate will win next year's election thus eliminating any chance of future 'fixes' to the AMT being proposed or passed by the next congress. Thus another single year AMT 'fix' is all that the GOP can possibly expect the current Democratically controlled congress to pass. Asking for more than that would be a combination of self-delusion and political suicide.
Unlike some other congressional bills whose intent is primarily 'ideological' and whose actual effect is minimal, a budget bill is about as pragmatic and widespread as it gets. With elections a year away, there is absolutely no point in the GOP proposing to a Democratically controlled congress a budget bill that is so heavy on economic 'ideology' as to have zero chance of passage, while at the same time providing partisan fodder for next year's election debates.
The GOP budget bill as presented appears to be fairly centrist in the short term at least, balancing minimal tax increases against minimal cuts in certain programs with a minimal increase in overall spending levels. This is opposed to the Democratic budget which is heavy on tax increases, has extremely few cuts to existing programs, with a 'generous' increase in overall spending levels. From a personal evaluation standpoint IMHO both proposals tax and spend too much, but nobody in congress is in a position to propose a third option !
Again I am not trying to beat a particular drum about the merits or drawbacks of either budget proposal. Obviously as a small business woman involved in a business that primarily depends on 'middle class' customer spending for it's source of income, I do not look forward to the large proposed tax increases in the Democratic budget. But my main point is that it was somehow possible for the Democrats to propose a budget including a 'record' 400 BILLION dollar tax increase without mainstream media publicizing that fact to any noticeable degree !
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Re: $400 billion dollar tax increase proposed by the US Congress and no news reports
This is the first year that AMT will probably hurt me significantly. Our problem isn't a lack of tax revenue, it's a lack of fiscal discipline.
Re: $400 billion dollar tax increase proposed by the US Congress and no news reports
If the GOP was really so concerned over the AMT they would have passed a permanent fix over the last 6 years while they were in control of congress.
Re: $400 billion dollar tax increase proposed by the US Congress and no news reports
Quote:
Originally Posted by
Casual Observer
it's a lack of fiscal discipline.
I agree completely.
Re: $400 billion dollar tax increase proposed by the US Congress and no news reports
*deleted* as I was not the author of post
Re: $400 billion dollar tax increase proposed by the US Congress and no news reports
^^^ I agree as well in regard to the lack of fiscal discipline. Unfortunately, everybody on both sides of the aisle (except Rep Dr. Ron Paul) seems to have come to the conclusion that gov't spending buys votes thus gov't spending levels can never be reduced year over year. One party apparently chooses to borrow and spend, while the other party apparently chooses to tax and spend. This leads to an unfortunate conclusion that the spending will continue or grow even faster, with taxes now taking a major leap upward in order to fund that spending.
Again I ask the question in regard to why this Democratic budget including a $400 billion dollar tax increase isn't receiving any mainstream news coverage to speak of. Undoubtedly a year from now there are going to be a whole lot of 'unhappy campers' out there once they face their higher 2007 tax bills.
Quote:
If the GOP was really so concerned over the AMT they would have passed a permanent fix over the last 6 years while they were in control of congress.
the AMT fix, along with a permanent fix for the cap gains tax and other GWB tax 'cuts' was tried more than once, and met with problems from the 40 vote 'majority' of Democrats in the previous Senate. The best vote content that was able to avoid filibuster was for short term fixes which are slated to soon expire.
Re: $400 billion dollar tax increase proposed by the US Congress and no news reports
Quote:
Originally Posted by
Melonie
the AMT fix, along with a permanent fix for the cap gains tax and other GWB tax 'cuts' was tried more than once, and met with problems from the 40 vote 'majority' of Democrats in the previous Senate. The best vote content that was able to avoid filibuster was for short term fixes which are slated to soon expire.
I'll stand by my claim, had they really wanted a AMT fix there would be a fix. The decision to tie an AMT fix into making all of GWB other tax 'cuts' permanent was what doomed them. GWB and his cronies were clearly siding with the top 2% over the middle class in this case.
Re: $400 billion dollar tax increase proposed by the US Congress and no news reports
RICHARD- You are correct that Bush and the GOP Congress dropped the ball on making tax-cuts permanent and fixing the AMT and the "marriage penalty" for that matter but so what ? The fact remains that the Dems have proposed the largest tax hike in our history dwarfing Clinton's tax increases of 1993. Btw, I hope you're not counting on the Dems to deliver a "middle class" tax cut. Clinton promised and never delivered ; same for Carter.
Why do you insist on ignoring JFK's tax cuts which inter alia reduced the top marginal rate from 91% to 70% and significantly cut corporate tax rates causing an economic boom in the 1960's which was undone starting in the late 60's by:lack of FISCAL Discipline leading to the inflation of the 70's and the "Misery Index" ? You continually claim that tax cuts are only a "short term fix" ignoring the fact that they have consistently resulted in dramatically INCREASED Federal Tax Revenue EVERY TIME. ( JFK cut tax rates- Fed revenue shot up; Reagan's tax cuts resulted in Federal Revenues almost doubling from 1981 to 1989. Clinton's Capital Gains Tax Cuts resulted in a budget surplus and a booming stock market ) The problem is that Congress refuses to control spending. Under Clinton we had Gramm-Rudman ( which Clinton opposed ) which forced Congress to control spending. Partly due to post- 9/11 spending increases related to defense and homeland security spending; partly the result of "No Child Left Behind " and the Medicare Prescription Drug Benefit plus pork-barrel spending fairly characterized as a "luau" under Hastert and DeLay we now have our current deficit and debt instead of the surplus that we had under Clinton and which we would have never seen had Newt and the Republicans not reined in and controlled Clinton's social spending plans.
I have to give Clinton credit. Fiscal discipline was forced on him by a Republican House and he turned around and tried to take all the credit claiming it was all his idea ! And the media went along for the most part.
How will Dem tax increases and increased spending return us to fiscal discipline ? Look how pork-laden the latest House bill to fund the troops ( with a deadline for withdrawl) was ? Both parties are equally guilty of spending OPM (other people's money ) to try and get re-elected and to curry favor with lobbyists and interest groups for the same reason.
Re: $400 billion dollar tax increase proposed by the US Congress and no news reports
^^^ again we are sidetracking into a tax policy discussion. I'm still trying to figure out how mainstream media can possibly classify a $400 billion dollar tax increase as not being newsworthy !!!
Quote:
I have to give Clinton credit. Fiscal discipline was forced on him by a Republican House and he turned around and tried to take all the credit claiming it was all his idea ! And the media went along for the most part.
perhaps this factors in to the mainstream media answer I'm still seeking !
Re: $400 billion dollar tax increase proposed by the US Congress and no news reports
Quote:
Originally Posted by
Melonie
^^^ again we are sidetracking into a tax policy discussion. I'm still trying to figure out how mainstream media can possibly classify a $400 billion dollar tax increase as not being newsworthy !!!
perhaps this factors in to the mainstream media answer I'm still seeking !
There is a front page article in today's NYT but it deals with Dems. wanting to LIMIT the AMT; not eliminate it ; BECAUSE it's impact will be felt heaviest in high-income states with heavy Democrat representation like N.Y. ; N.J. ; Conn. and California and next year is an Election Year.
I love it ! Rahm Emanuel and Charlie Rangel who never met a tax hike they didn't like ( or social spending program for that matter ) are now scrambling to cut taxes ! BUT it doesn't say anything about Pelosi's proposed $400 billion tax hike. Maybe because the Dems will never get 60 votes in the Senate and even if they did , Bush would veto it.
No, no Melonie. You know better. If it makes the Dems look good and/or Bush and the Republicans look bad then you are sure to see it in the mainstream press. Otherwise they'll bury it or ignore it.
How much press coverage has there been on Teddy & RFK Jr.'s opposition to Cape Cod & Nantucket wind farms ? According to the A.P. on 4/1/07 the KENNEDY'S Hyannis Port compound would have a clear view of the proposed wind farm which would produce 80% of Nantucket's and Cape Cod's electricity. Citing risks to "fishing" ? , navigation and the "sanctuary of Nantucket Sound", Ted's spokesman said his opposition is "not selfish" as environmental groups like Greenpeace have charged. Where is the front page coverage of this blatant
NIMBY hypocrisy ? Never anyhthing about it in the NYT or Wash. Post or Boston Globe. Only snippets from wire services in the N.Y. Post and Daily News.