Obama’s Backdoor Tax Increase (Letting the Bush Tax Cuts Expire)
I hope that you didn’t make too many plans with that thirteen dollar tax break that you are going to receive under the stimulus package. Because you are going to need your thirteen dollar, which will fall to eight dollar, tax break to help pay for the new tax increase that you are going to receive next year.
It was nice of Obama to make the symbolic gesture of cutting taxes on the middle class right before his backdoor tax increase cancels that tax break out. You may be wondering what this backdoor tax increase that I am talking about is all about.
It’s simple, President Obama is going to let the Bush tax cuts expire. These taxes are set to expire in 2010. Contrary to the spin from the Obama administration the Bush tax cuts were not just on the rich. When these tax cuts expire every American taxpayer will receive a tax increase negating his thrifty thirteen dollar tax cut.
Part of the discussion is sure to include the impending tax increases set to hit every American taxpayer when the Bush tax cuts expire in 2010, unless Congress acts to extend them. During the presidential campaign, then-Sen. Barack Obama pledged to repeal the tax cuts.
He is not going to repeal them because then people would see it for what it is, Obama raising their taxes. Instead he will let them expire under the cover of night. It won’t be he who raises taxes but just the expiration of another president’s tax cuts. But it is important to remember what this arrogant man said about the American taxpayer in regards to the Bush tax cuts when he was running for president.
The Bush tax cuts — people didn’t need them, and they weren’t even asking for them, and that’s why they need to be less, so that we can pay for universal health care and other initiatives
He said that we didn’t need them and that we didn’t want them. Why would we want the money that we worked hard for? How arrogant is a statement like that? How can he sit there and say that we don’t need extra money? Money that we earned. He truly believes that he can spend our money better than we can.
But there is another secret buried in the expiration of the Bush tax cuts and it is a secret that the press will not report and it is a secret that Obama will never let out. The Bush tax cuts have been portrayed as tax cuts that were only for the rich but when these tax cuts expires it will not be the rich that is hurt the most. It won’t even be the middle class that is hurt the most. When President Obama lets the tax cut expire the poorest Americans will suffer the largest tax increase of all.
every income tax bracket will rise, with the lowest tax bracket experiencing the largest increase – jumping from 10 percent to 15 percent of income.
The people in the lowest tax bracket will have their taxes increased by five percent. The largest increase of all tax brackets. Yet it is Obama who claims that he is a man of the people. He claims that it is he who will protect middle class Americans.
The great lie about the Bush tax cuts has been repeated so often that now people believe it is true. People believe that only the rich got tax cuts under the former president. Every American got tax relief in the Bush tax cuts and when Obama lets those cuts expire it will amount to a backdoor tax on all Americans. And the hardest hit will be the people who can least afford it.
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America's Watchtower 
Is my math bad? The lowest tax bracket will have their taxes increased 5%. That’ 5% of a dollar, but 50% of their original tax burden. 5% is half of what they are paying now. That’s sounds even worse.
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I didn’t even think of it like that. Obama is ripping of the poor.
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SO, let me get this straight: we the people should want to pay more taxes, should be grateful to pay our hard earned money for government programs to “help” “poor” folks just because he says so? Arrogant doesn’t begin to cover that. Aaarrrgghh….
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Obama made 6 million last year. He said”I didn’t need the Bush tax cuts.” The question should be asked then, Why didn’t you give it back to the govenment ? In fact, this question should be asked of alllll the rich liberal’s. If you care so much about the middle class give alllll your wealth back to the government and become one of the middle class instead of the evil rich. Why the hell is it only somebody else’s money that should be taken by the government.
Here’s another question I want answered. Why does Obama drive around in a fleet of huge SUV’s? Isn’t a highbred good enough for him? How does Al Gore have the balls to tell us to take a bicycle to work when he uses private jets and lives in mansions? How f—-n stupid can you people be to believe these scumbags? Understand this lib’s, Obama, Pelosi and the rest of them aren’t going to be standing on bread lines, but YOU will, and real soon.
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It is funny how these people love to slam the rich all of the time as if they themselves are not rich and are just another one of us.
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wow u are stupid.
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WOW! You are supid! Or– wow, you are stupid. Either of those sentences might have been a more appropriate, grammatically correct way to write your sentence in which you claim that I am the stupid one.
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What a crock of crap. I make over 300k and will gladly pay more taxes if that is what needs to be done. There is no good reason in a country as prosperous as this one for most of the wealth to be in the hands of such a small percentage of the population. Do not tell me they worked for it as I have been around enough of them to know better.
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Are you saying that you didn’t work for it?
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Let the Bush Tax Cuts Expire (all of them)! I made $50,000 last year before I lost my manufacturing job due to Free Trade. I got a whopping $17 a week. Who cares about that pittance?
Here is the American Tax Policy Center Breakdown of the Bush Tax Cuts of 2001 and 2002.
Annual income Average tax savings
Less than $10,000 $4
$10,000-$19,999 $167
$20,000-$29,999 $553
$30,000-$39,999 $759
$40,000-$49,999 $873
$50,000-$74,999 $1,203
$75,000-$99,999 $1,687
$100,000-$199,999 $2,492
$200,000-$499,999 $4,532
$500,000-$1 million $22,630
More than $1 million $130,423
SOURCE: Tax Policy Center
Here’s an idea.
Let the Bush Tax Cuts Expire. You would lose the cut above.
Let’s cut the payroll taxes in half instead. Instead of both the employee and the employer paying 7.5%. Let’s let just the employer do it! Tax cut of $450 Billion dollars a year!!!!
Voluntary Health Care Reform:
If you don’t like your health care or your boss does not offer it to you, you could opt-in to Medicaid and pay the 7.5% that you go in the above tax cut and that would be your premiums. If your employer doesn’t offer any health care, he would have to chip in 5% too. If he offers health care, he would not have to pay the tax.
This would pay for itself in long-term savings to the Medicare plan. Good health care for people in their 40’s leads to healthier people in their 60’s.
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See that millionaire? That’s three to four jobs lost for people making $30,000 – $39,999 a year.
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To Bob regarding the millionaire:
I presume what you mean is that if (when) the Bush tax cuts expire, that millionaire will have $130,000 less to spend stimulating the economy, instead paying it to the black hole called government, which will cost the economy three to four jobs. It is actually worse than that, because the people whose jobs are lost due to reduced spending power of the rest of us, can’t spend their (nonexistent) paycheck, further reducing economic activity.
This effect is something I learned about in my high school civics class: what you earn gets recycled efficiently through the economy when you spend it, minus what you pay in taxes (which is inefficiently used, if at all). If we paid zero taxes, our incomes would recycle through the economy indefinitely. The higher the tax rate, the more is siphoned off each cycle, reducing the amount available for efficient economic activity. Again, basic economics from high school.
As an example, I am a millionaire. No, I don’t make a million a year like the Wall Street whiz kids, but I did build a business from scratch, created over 150 jobs (something Obama has never done), and sold the business. This summer, I had a vacation home built in a small town in Alaska. My spending kept people employed, gainfully, and purchased materials from across the United States, further stimulating our domestic manufacturing. I made a number of trips up there this year, providing revenue to innkeepers and waitresses with tip money.
By the way, if we all tipped our waiters more, we are being even more efficient with our spending from an economic stimulus point of view, because most tip money goes unreported and thus escapes taxation. Giving to worthy charities has a similar effect, if you figure in the tax break one gets for such giving.
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They haven’t made an decisions the last time I asked my Fed Tax professor. They may decide to go back to what it WAS before Bush’s cuts were implemented, or make entirely new rules. NOT finalized yet.
When calculating taxes manually, you will realize that you go through circles calculating with all these crazy formulas, floors, limitations. Nothing is straight forward with taxes and therefore should not be looked as so simply.
I’m assuming instead of 10%, it will be 15% for the lowest tax bracket. But look: the lowest tax bracket makes less than 8350 so why get your undies all bunched up? THAT’S the bracket with the largest increase out of all of them.
2010 Tax Rate Schedules:
Single:
0-8350: 10%
8350-33950: 835 + 15% (of the amount over 8350, same idea for the rest)
33950-82250: 4675 + 25%
82250-171550: 16750 + 28%
171550-372950: 41754 + 33%
372950- ………. : 108216 +35%
Married(filing jointly):
0-16700: 10%
16700-67900: 1670 + 15% (of the amount over 16700)
67900-137050: 9350 + 25%
137050-208850: 26637.50 + 28%
208850-372950: 46741.50 + 33%
372950- ………… : 100894.50 + 35%
Head of Household:
0-11950: 10%
11950-45500: 11950 + 15% (of the amount over 11950)
45500-117450: 6227.50 + 25%
117450-190200: 24215 + 28%
190200-372950: 44585 + 33%
372950- ……….. : 104892.50 + 35%
And what I have to say about some of these statistics I’ve seen:
“There are three kinds of lies: lies, damned lies, and statistics.” – Mark Twain
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I don’t see why Obama is being criticized here. We should be up in arms about Bush not making the cuts permanent. This article is shit.
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I can’t wait til Obama blames this one on Bush also. It would sound something like this: Mr. Obama. You said you would not increase taxes on the middle class. However, by letting the tax cuts expire, aren’t you doing just that?
Bush put the tax cuts in place. It is his fault that they are scheduled to expire. Not mine.
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Are you the same guys who are all upset about the budget deficit? If so, you need to examine your priorities.
And by the way, what incompetent economics teacher ever taught this guy the fairyland of the free lunch, or was he just an incompetent student?:
This effect is something I learned about in my high school civics class: what you earn gets recycled efficiently through the economy when you spend it, minus what you pay in taxes (which is inefficiently used, if at all). If we paid zero taxes, our incomes would recycle through the economy indefinitely. The higher the tax rate, the more is siphoned off each cycle, reducing the amount available for efficient economic activity. Again, basic economics from high school.
Basic economics from an idiot. You mean that if we paid no taxes, there’d be enough money to pay for the 550 billion defense department Bush left us? And the global war on terror and social security and …. And where would that money come from, pray tell?
The stupid, it burns …!
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Probably the same way they did before the Civil War and the existence of an income tax. How about we balance the budget by admitting the war on poverty has failed and repeal those laws, departments and expenditures?
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Amen brother!
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The war on poverty didn’t fail.
http://www.huppi.com/kangaroo/L-welfaretrillions.htm
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If the Federal Government stopped all their entitlement programs (aka buying votes), there would be plenty of money to handle the basic government set forth by the Constitution.
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Truer words have never been spoken.
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Obama’s proposed 2011 budget includes the $3.1 trillion cost over the next ten years of making most of the Bush tax cuts of 2001 and 2003 permanent. It includes $695 billion in revenue from letting some tax cuts expire, but only for individuals with taxable incomes above $200,000, households with taxable incomes over $250,000, and taxable estates worth more than $3,500,000. It also includes $659 billion to permanently index the Alternative Minimum Tax for inflation.
The phony budget numbers were in the Bush budgets that assumed the tax cuts would expire in 2010 and the AMT would be collected from most taxpayers every year. Another Bush budget gimmick that Obama has gotten rid of is the inclusion every year of cuts to Medicare physician payments and then passing a law preventing the cuts at the last minute. The Obama budget includes the ten year cost of $371 billion of eliminating the cuts.
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How is this country going to repay the debts of the most profligate president in history – George W. Bush? His “tax cuts” are paid for by borrowed money to keep the government running. How did we go from a Clinton surplus to at least $53 trillion in total federal obligations over the next forty years? (See GAO.gov.) Our country can’t go through a Chapter 11 bankruptcy to clear away these obligations. How is the government is going to raise the revenue to pay its obligations? The words are “raise taxes” and “reduce spending”. There is no way around it unless we borrow more to pay off debts with interest. That is a one-way trip to total bankruptcy.
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I think were missing who was benefiting most. Tax cuts for the bottom 60% wouldn’t be that great loss to revenue. When we give a better tax break to a Millionaires, we basically chop off our own heads. That top 1% accounts for 32% of the Revenue we lost. 2.5 trillion we lost because of these cuts , 52% being the top 5%. Now if it was so beneficial then why are we currently still in a recession. It boggles my mind that someone who prospered so much in this country is not willing to pay his or hers fair percentage.
The lowest 20% only received a average of $773 over the past decade about $80 dollars a year . Look at the percentages and they increase according to income, starting with the lowest 20% seeing less then 1% and the top 1% was seeing a 4-5% break. I’m sure if the poorest saved for 10 years they could afford a extra months rent, while the richest can go buy a second home.
I would like to see the source of the 5% increase for the lowest tax bracket, 5% doesn’t correlate with the source i provide.
Click to access bushtaxcutsvshealthcare.pdf
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What an absolute LIE. The example given about the 5% is total BS. That would only happen is Obama let ALL of the bush tax cuts expire, which has never been talked about except by scare tactic BSers like America’s Watchtower.
The bottom line is bush make temporary tax cuts (which overwhemingly benefitted the ultra wealthy) to hide the true long term cost. Now Obama is going to let SOME of the cuts expire, the cuts that benefitted a few but hurt the country as a whole.
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My Dear departed Dad used to regularly remind me…”as soon as society figures out they can vote themselves a free lunch, we are doomed”. For example the fall of Rome. There has not been any country or nation to survive more than 200 years, other than the good ole’ USA, without a catastrophic calamity that tests the very foundation of its people.
Unless we get some serious order restored, and soon, we will follow the Roman Empire into the pages of history.
Consider this…
In the early ’60s, the ratio of management types to the blue collar workers wages was somewhere around 30:1, today it is easy to find ratios in excess of 300:1.
Entitlements can not continue to exceed support (productive) workers. I have NO belief that in the next 10 years I will be able to collect ANY of the thousands of dollars I have put into Social Security.
Too many, WAY TOO MANY requirements, rules and other bureaucratic nonsense is required to produce a widget here. I live in Arizona and when I am told I can not build on a spot because a 2 foot wide patch of sand, that gets wet ONLY if it rains, is identified a navigable water-way, is an insult to common sense!
I spoke with a gentleman from Canada last year about his interest in building an industrial complex in an area where they were already established. He was told by the local narcissistic authorities that he had to provide for ‘the native plants he would displace’ in order to build.
His observation, “You must be joking! I just flew in over miles and miles of this same scrub brush!”.
He left. The same nasty little scrub brush is still sitting there, amidst transient camps and trash.
Wake up America, take our country back from special, hog trough feeding interests, or you may find yourself fighting for the next available scrub brush!
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Nicely said!
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The Bush tax cuts must be allowed to expire, and the only reason I needed to accept this fact was when Mitch Mconnell was on NBC being interviewed by David Gregory and repeatedly dodged the question, “How will you pay for these tax cuts?” The reason Mr. Mconnell did not answer the question is because he has no plans to pay for the tax cuts, save borrowing more money from China, and cutting programs like Social Security and Medicare.
I have noticed that Republicans have obstructed every single thing that the current congress has tried to do, but now they are acting like the sky is falling, and that we need to bring new legislation to the table to extend these tax cuts. I don’t want to see it happen. Why? Because over the last 10 years, all I’ve seen out of these tax cuts are a wrecked economy and CEO bonuses getting bigger each year. The intent here is not to punish the rich, but rather have them realize that in order to make ridiculous amounts of money in this country, you need to pay into the system that has made you rich.
Mark my words, if the Elite continue to perpetuate class inequality in this country there will be a day when the rest of us with no jobs and nothing to eat will come and take from you what we need. If the deck is stacked against us, we will simply eat the rich (since you have the attitude ‘let them eat cake’). Just look at the French revolution and learn, because it will eventually happen here at this rate.
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What scares me the most about the expiration of the Bush tax cuts is this-My husband and I make about 100,000 a year. With the way the taxes have been going lately, we actually bring home about approximately 50,000. It these tax cuts are allowed to expire, will we be lucky to bring home 40 or even 35000 a year? My husband retires in about 16 months. I’ll have to work for another 10 years. What bothers me the most is the fact that I will be able to bring more take home pay home while the middle class will be brought to it’s knees with the taxes that are going to unleashed on them.
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Obama isn’t wanting the Bush tax cuts to expire…he purposed a to leave the tax break for 98% of Americans who fall into the $250K or less range.
Republicans are all about the rich getting richer.
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These people aree quite rare, however, and most use corsets as sexy underwear for the boudoir.
You can also add accessories it by using an oversized bag clutch andd also multi-layered chains.
Let’s see the holy corset waist of Megan Fox, the brilliant Hollywood actress in the movie Jonah Hex.
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