When Would the President's Tax Cuts Expire?

In 2001 and 2003, President George W. Bush proposed and Congress passed a series of tax cuts to reinvigorate the economy and reduce the government’s burden on workers’ paychecks. Because of opposition to these measures from some in Congress, they were implemented as temporary tax cuts, all of which will expire by January 1, 2011. The uncertainty of their future has an effect on present-day spending by businesses and individuals, who know that they may have to pay higher taxes in the future.

Today’s economic recovery provides some evidence that the Bush tax cuts worked as intended. If Congress is serious about addressing economic growth and unemployment, it should make all of the 2001 and 2003 tax cuts permanent before the following expirations [1] can occur:

Budget plans challenge Bush's tax cuts (Immediate tax increases on Jan 1, 2009)

[snip]

Democratic rivals Clinton of New York and Obama of Illinois both voted to extend only some of Bush's tax cuts while allowing cuts in income tax rates and investments expire. They joined other Democrats in a 52-47 vote against extending $376 billion of them.

Sidebar:

COMPARING GOP, DEM PLANS

Options debated by the House and Senate for dealing with President Bush's tax cuts when they expire at the end of 2010:

--Senate Democrats, including presidential rivals Hillary Rodham Clinton of New York and Barack Obama of Illinois, pushed through a plan to selectively preserve $340 billion of President Bush's tax cuts through 2013. It would extend the 10% tax bracket, the $1,000 per child tax credit, relief from the so-called marriage penalty and various tax cuts for people serving in the military and national guard.

--Senate Republicans failed in their efforts to extend another $600 billion of Bush's tax cuts by preserving all other current tax rates. Otherwise those rates will rise 3 percentage points at the end of 2010 and the highest rate will rise from 35% to 39.6%. The GOP plan also would have continued the zero tax rate on inheritances in 2010. That rate is now scheduled to revert back to 55% in 2011. The Republican plan also offered middle-income families long-term protection from becoming subject to a higher alternative minimum tax rate.

--House Democrats would allow all of Bush's tax cuts to expire, effectively raising taxes by $683 billion from 2011 through 2013.

--House Republicans would preserve all of Bush's tax cuts and eliminate the alternative minimum tax at a total cost of almost $1.2 trillion in revenues for the Treasury over the next five years. Some Medicare and Medicaid benefits would be cut to help pay for their plan.

http://www.usatoday.com/news/washington/2008-03-13-senate-tax_n.htm

The tax cuts won’t get a chance to expire. The enabling legislation will simply be repealed as of about the first of February, 2009.

But that, of course, would not be a tax “increase”, it would be “restoration”.

This will happen right after the “Fairness Doctrine” is reinstated, and Rush Limbaugh becomes a fugitive, broadcasting in shortwave and satellite radio from offshore location(s).

Contracts won’t mean much of anything.

Included in that....if we can’t afford to buy products, companies will cut back on manufacturing and won’t need all the employees they have. More layoffs = less spending = less manufacturing = more layoffs = less spending = less manufacturing = more layoffs = less spending = less manufacturing = more layoffs = and it goes on and on and on. Until the people get tired of it and do something about it. If they can get past Obama’s civilian army.

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