House Passes Tax Relief

AP via SFGate ^ | 12/12/7 | JIM ABRAMS, Associated Press Writer

[SmithL]

WASHINGTON (AP) -- Confronting the Senate and White House, House Democrats for a second time passed tax relief for 21 million people, going after companies and hedge fund managers that shelter money offshore. The vote Wednesday was a near party-line 226-193.

The White House responded with a veto threat and the Senate's top Republican said the House approach to fixing the alternative minimum tax was unacceptable.

"The Senate will not pass a short-term fix for some, if it includes a permanent massive tax hike for others," said Sen. Mitch McConnell, R-Ky.

But House Speaker Nancy Pelosi, D-Calif., said it was a clear choice when millions of families get tax relief while 5,000 to 10,000 wealthy people pay the tab. Republicans, she said, would "increase the national debt in order to give comfort to people who are evading their taxes by going offshore to the tune of billions of dollars."

Fiscally conservative Democrats known as Blue Dogs have pushed to rein in that tax without adding to the federal deficit. "We see this as the defining issue for our party," said one of the group's leaders, Rep. Mike Ross, D-Ark.

The House last month passed legislation providing one-year relief for about 21 million — some put the number at 23 million — facing an AMT bill averaging about $2,000. The measure also extending other tax breaks and included $80 billion in new tax revenues, affecting investment fund managers and others.

Senate Republicans last week blocked consideration of the House bill, forcing the Senate to go with a bill that provides AMT relief without revenue raisers to offset the $50 billion cost.

[SmithL]

Some people just like taxes.

[traditional1]

"millions of families get tax relief while 5,000 to 10,000 wealthy people pay the tab"

Losing 5,000 to 10,000 voters, while gaining millions of voters is political self-enrichment for Democrats/Socialists. She's going to empty the pockets of those who are wealthy to fill the pockets of the under-achievers. Wealth-redistribution to buy votes.

How this even passes the smell test of "equal protection under the law" is beyond me.

When certain citizens can be singled out to be penalized for the benefit of OTHERS, where is the Constitutionality in this?

(I borrowed the .gif from another Freeper for this one!)

[Tarpon]

Democrats, raise taxes, fund socialsim and gun control ... It’s all Democrats know.

[kitkat]

***Democrats, raise taxes, fund socialsim and gun control ... It’s all Democrats know.***

And they just don’t seem to be able to remember that it fails every time. No, wait...they KNOW it destroys a country, but in the meantime it gets them votes and perks.

[EGPWS]

Some people just like taxes.

About half the working public anymore that work for the government and depend upon government funding for their financial livelihood...

[MNJohnnie]

Could this article be anymore transparent in it dishonest propagandizing for the Democrats?

[MNJohnnie]

The House last month passed legislation providing one-year relief for about 21 million — some put the number at 23 million — facing an AMT bill averaging about $2,000. The measure also extending other tax breaks and included $80 billion in new tax revenues, affecting investment fund managers and others.

So in other words, it a tax cut JUST long enough for Democrats to run for re-election in 2008, then the tax relief goes away, and the TAX HIKE imposed to "pay for it" hangs around for ever.

[meyer]

If the democRATS had any kay-hoo-nahs, they’d just eliminate the AMT and be done with it. But that is not the case here, or anywhere else. DemocRATS never lower taxes. They only shift them around. Their goal is to fleece Republicans and use the money to buy democRAT votes.

[traditional1]

Exactly....there’s no long term tax cut in the vocabulary of the Socialists; it’s a re-assignment of earned wealth to the low-lifes that are the Democrat base. The support is from the lackluster who want freebies by taxing “those rich bastards”....none of their base aspires to be productive, successful, or one of those “rich bastards” in THEIR Utopia, and under their heroes, they NEVER will be.

[Myrddin]

How this even passes the smell test of "equal protection under the law" is beyond me.

The mere existence of a "progressive" tax scheme stomps all over any concept of "equal protection". The people paying the majority of tax revenues are the same ones who see little or no tangible return for the money confiscated. Those paying little have government largess lavished upon them in exchange for their votes.

[grey_whiskers]

So in other words, it a tax cut JUST long enough for Democrats to run for re-election in 2008, then the tax relief goes away, and the TAX HIKE imposed to "pay for it" hangs around for ever.

Kinda like taxes for the I-35 bridge repair and bridge inspections here in MN.

Cheers!

[an amused spectator]

Since when is an $80 billion tax hike "tax relief"?

This is why the media can't be trusted - they're cheerleaders for Big Government taxation.

[Kellis91789]

The sad thing about tax issues, including the AMT and the progressive nature of our tax system is that you never hear any serious discussion in the media of the simplest possible reform of the income tax.

When was the last time you heard anybody mention that it would only take a 10% income tax rate to completely replace the current personal and corporate income tax revenues ?

Instead, all of the deductions and exemptions leave us with brackets running up to 35%. That is the cost of all those social engineering choices.

Fred and Forbes, and everybody that has ever proposed a Flat(ter) Tax shies away from this simplicity by keeping huge standard deductions. Why ? Can people not be convinced that 10% of income is a reasonable figure for EVERYBODY to pay for the freedoms and protections the government provides ?

[Kellis91789]

People will generally agree that mugging is wrong, even if the person robbed is wealthy enough to not be greatly harmed by the loss.

Those same people will also agree that hiring a robber to mug somebody else is just as bad as perpetrating the crime themselves.

Yet those same people will vote for the government to mug somebody on their behalf.

The rationalization that must occur in these people’s heads just boggles the mind.

[Myrddin]

My W4 is declared single/0. At my income level, there is little or nothing allowed as a deduction. It has all been "phased out"...read my taxes have been raised. Any of the common deductions e.g. property tax will immediately trigger AMT. I get nailed for the 28% bracket or higher...depending on how much my wife stacks on top and whether my company bombs me with an unsolicited distribution of my stock investments (for their financial convenience). A flat 10% rate would be a BIG tax cut for me. My state income tax is 11.5% of the first $100K and 7.8% of the amount over $100K.

[traditional1]

The attractiveness of Tennessee and Florida, with NO state income tax must be pretty good!

[Kellis91789]

It would cut my federal income tax in half, but I’d actually pay more after I retire.

The fact that a flat 10% is all that would be necessary, and yet politicians have convinced tens of millions of people that there is no shame in forcing others to pay much more than that so they can pay less is just mind boggling to me.

Although, I should warn you that the 10% figure only works if all corporate income is attributed to shareholders. Otherwise you have to keep the corporate income tax, which is just a hidden tax on its customers.

[Kellis91789]

States with no income tax might be good places to work in, but their high property taxes and sales taxes make them bad places to retire in.

Assuming your retirement income will be much less than your working income, the high income tax won’t affect you as much as a high property tax on a property that is reassessed to a higher value each year.

[Myrddin]

I've paid off my mortgage on my primary residence. The increasing property prices prompted the legislature to increase the exemption levels for owner occupied property. That cut my property taxes from $3250 to $2160 this year. Once I knock out the car payments, I could live comfortably on much less than what I currently earn. Retirement isn't even on my mind for at least another 15 to 20 years. When I'm only working 40 hours a week vs 70+, I'll take that as "retirement".