The Bush Tax Cuts: Obama is dithering again…

Big Bureaucracy ^ | April 12th, 2010 | Ellie Velinska

[Big Bureaucracy]

Will the Bush Tax Cuts expire? More dithering… May be, may be not, may be some…

The folks from the Tax Policy Center are issuing paper after paper in Desperate Seeking of Revenues. Their ideas can be sum up with this:

- Let the Bush Tax Cuts expire;

- Get rid of the tax deductions;

- Impose national Value Added Tax (VAT);

- Mix and match all of the above.

The pain is in the details.

Progressive Version: It is expected most of the Bush Tax cuts to expire – Obama may keep some to be able to add it as a socialistic talking point in his speeches. Itemized deductions will be reduced for the “rich”. VAT will be introduced in combination with a removal of the Federal Income Tax for the folks making less than 70K. Earned Income Credit will be expanded to send more welfare checks to the “poor” to make up for the “unfair” consumption VAT tax.

Conservative Version: The only detailed one that is scored by the CBO is Paul Ryan’s Roadmap. He proposes flat tax (with 2 rates -10 percent on folks making gross up to $100,000 for joint filers, and $50,000 for single filers; and 25 percent on taxable income above these amounts). The old tax code is scraped with all its loopholes, tax-cuts, tax-hikes; the itemized deductions are gone and so is the Earned Income Credit (imagine the reaction of the progressives on that).

One thing is sure: the gap between the government spending and the government income will be filled with somebody’s tax dollars. The more the bureaucrats spend – the more money come out of your pocket.

[mlocher]

More dithering

I am delighted that der Fuhrer is such a strong, decisive leader!

[Sacajaweau]

25% + 15% SS/Medicare on the entire middle class but no change for folks who live off welfare

[avacado]

Paul Ryan’s Roadmap. He proposes flat tax (with 2 rates -10 percent on folks making gross up to $100,000 for joint filers, and $50,000 for single filers; and 25 percent on taxable income above these amounts).

Well, at the current federal income tax rates a single filer making about $100K/yr pays about 19% in federal income taxes. A 25% flat tax will be a 32% tax increase. WRONG DIRECTION!!!

[NMEwithin]

His loony base will go nuts if he doesn’t let the Bush Tax Cuts expire....

[KarlInOhio]

Obama isn't dithering so much as he is sneaking. He's like a bank robber who is trying to get out of view of the security cameras and waiting for the security guard to be distracted. Then he orders everyone to hand over their cash.

[Terabitten]

with 2 rates -10 percent on folks making gross up to $100,000 for joint filers, and $50,000 for single filers; and 25 percent on taxable income above these amounts

If 10% was good enough for the Lord, it should be good enough for the Federal government.

[Big Bureaucracy]

I agree with you. One flat 10% for everybody would give me peace of mind.

[KarlInOhio]

Conservative Version: The only detailed one that is scored by the CBO is Paul Ryan’s Roadmap. He proposes flat tax (with 2 rates -10 percent on folks making gross up to $100,000 for joint filers, and $50,000 for single filers; and 25 percent on taxable income above these amounts).

Flat taxes have one rate. Period. If it has more than one rate it is a progressive tax (or maybe regressive if the higher rate is for lower incomes). With only two rates you can call it a simpler tax, but it is not flat.

[silverleaf]

All I know is this year we owed big for the first time in many years, and without really doing much (anything) to incur it- except getting a raise we really just gave to obama!

So planning on MAJOR belt tightening to make it up, and get ready for a big bite next year

Just what the obamaconomy needs, right? People like us, to stop buying stuff.

I know that just for the increased tax withholding to cover next year, I could handled the monthly payment to buy a car to replace the 12 yr old car I have now.

But- I will not. And dining out? Pshaw- that already means Subway on Friday night. That is going, too.

[Big Bureaucracy]

good point - I’ll fix that. Ryan calls it - simpler tax rate

[Trust but Verify]

Under Ryan’s plan, the first 100K for joint filers would be at 10%, and ANYTHING OVER 100K would be at 25% So if you earned $110K, you would pay 10% ($10,000) for the first 100K and 25% or ($2,500) for the next 10K for a total of $12,500 or 11.4%.

[Ingtar]

Still simpler, but not flat.

[avacado]

"Under Ryan’s plan, the first 100K for joint filers would be at 10%, and ANYTHING OVER 100K would be at 25% So if you earned $110K, you would pay 10% ($10,000) for the first 100K and 25% or ($2,500) for the next 10K for a total of $12,500 or 11.4%."

Thanks for that info! I should have realized it was marginal rates. I like the plan now!

[mwl8787]

Pelosi has already said they (both chambers of Congress) will let the Bush tax cuts expire.

Someone please correct me if I am wrong, but Obama cannot unilaterally pick-and-choose what items he will allow to expire or not... this will require congressional action, correct? Pelosi can get the House to do whatever she wants; the Senate is an entirely different matter just prior to the elections.... in fact, the insistence by the RATS to allow the tax cuts to expire is going to be a huge political weapon for the GOP this fall... the middle class has not even begun to focus on this, which is going to make the August Town Halls look like a picnic...

[Big Bureaucracy]

He also keeps the standard tax deduction - but removes the rest of the tax deductions. His proposal is reforming the business tax code to Business Consumption Tax (kind of VAT for business)

[sport]

He is not supposed to be able to, but, he has already been allowed to do so many things he, under the Constitution, he should not be, I can’t answer you.

I suppose that the short answer wouuld be that he will do as he please until he is stopped. I don’[t know who or what will stop him ,but I know three that will not they are:

1. The Constitution. He does not give a damn about the Constitution.

2. The Democrat Party. The Democrat Party does not give a damn about the Constitution, unless it suits their purpose, either.

3. The Republican Party. The Republicans are so afraid that the media will call them “mean spirited” or “raceists” that they cannot function.

[LTCJ]

His proposal is reforming the business tax code to Business Consumption Tax (kind of VAT for business)

How is a business VAT not just an opaque tax on consumers? Businesses don't pay taxes - the customer does.

[silverleaf]

all I can say is- for next year’s taxes due-

prepare to walk the plank. I think people accustomed to their comfy tax refunds are going to be shocked at how much they owe. The Won is out there today boasting about those bigger refunds the “average” American is getting this year. I guess I shold be flattered to be so much above the “average” American

I think I know and I am still going to be shocked.

[Sacajaweau]

there’s not one of the congress critters who actually need their job. If they let the tax cuts expire and lose the election, the Dems will simply provide another job elsewhere...Have been watching that game locally for 40 years...