Backdoor taxes to hit middle class

Reuters (via Yahoo Canada ^ | 2-1-2010 | Terri Cullen

[bigbob]

NEW YORK (Reuters.com) --The Obama administration's plan to cut more than $1 trillion from the deficit over the next decade relies heavily on so-called backdoor tax increases that will result in a bigger tax bill for middle-class families.

In the 2010 budget tabled by President Barack Obama on Monday, the White House wants to let billions of dollars in tax breaks expire by the end of the year -- effectively a tax hike by stealth.

[jimt]

I really appreciate them taking away the $250 teacher supplies deduction on gross income.

My wife spends at least $1500 on supplies for her classroom, while vast sums are pissed away on NON-TEACHING educrats whose ranks expand every year.

[Roccus]

From its inception, the Rats have decried the Bush cuts as "tax cuts for the wealthiest Americans." Imagine how many Americans will be overjoyed to learn that they are the wealthiest Americans.

[Recovering_Democrat]

So why did al-Reuters take this article away? Pressure by the Hussein cult?

[xkaydet65]

LOL. My friends in my JHS always attacked Bush for his tax cuts for the rich. Most had just started teaching in ‘03 when the tax cuts became law, so they did not receive them. Now that they are up the pay scale, they are going to have a shock when they see the new numbers on their pay stubs. I’m retiring in 7 days, but I’ll make a trip back next February to see their faces on pay day.

[circumbendibus]

It's time to repeal the 16th Amendment.

We must return all government powers to the states except for National Security. We can no longer be a piggy-bank for the dictatorships and other governments of the world through the United Nations and through a century-old failed foreign policy. We must protect our currency now that we are off the gold standard. The progressives (liberals, Democrats) have no standards. We must individualize our retirement programs through forced savings programs like IRAs and 401's. Social Security Administration is a failure and criminal PONZI scheme. Federal employee retirement programs must be limited to money set aside during working years (that includes the military) in the form of a balloon payment.

[listenhillary]

From yahoo
http://news.yahoo.com/s/nm/20100202/us_nm/us_budget_backdoortaxes_advisory_1

The Feb 1 story headlined “Backdoor taxes to hit middle class” is wrong and has been withdrawn. The story said lower-income families will pay more under tax provisions scheduled to expire Dec 31. The Obama administration’s budget calls for the extension of those tax provisions for households earning less than $250,000. There will be no substitute story.

[Recovering_Democrat]

Thanks. I wonder about a news organization that has an article written that is long and detailed and apparently false.

Almost as if they were ready to do it regardless of the truth.

What about the $250 teacher tax credit?

What about the “Hill” article today that talks about the energy tax credit for the middle class?

You know, trusting the LameStream Media is not really possible anymore. When they get it correct, they’re usually doing it with a liberal bias. And when they do speak some truth about the libs, it is with some facts wrong.

[Burkean]

What next? Radio Free America?

[listenhillary]

I think Reuters freaked out when Rahm and his thugs started tearing them a new orifice for daring to run this story.

Simply post corrections to the story. Neutered Reuters, inc. indeed.

[Taxman]

You all know there is an upside to all this tax bickering and deficit spending, don’t you?

It will accelerate FairTax implementation.

That’s right! Congressional and administration fools will become desperate to figure out a way to cause the economy to rebound after all their machinations fail (as they surely will), and they will turn to the FairTax to solve our economic problems.

And we all know the FairTax will do just that, don’t we?

[RangerM]

If the budget doesn’t pass (many dems are coming out against it), then the story would be accurate, correct?

[RayChuang88]

Here's what the government don't realize are the big upsides to FairTax:

1) No more meticulous bookkeeping for filing income tax forms every April 15th. That right there saves Americans possibly US$500 BILLION per year in compliance costs.
2) American citizens get 20-25% bigger paychecks from the employer due to no more tax withholding.
3) American citizens can put their deposit their paychecks into bank or investment accounts with no tax consequences. That means no more incentives to either participate in the underground economy or funnel out money to offshore financial centers, since there are no more income taxes to dodge!
4) As a result of #3, most of that US$15 TRILLION in American-owned liquid assets now out of the US financial system for tax avoidance reasons returns, essentially the world's biggest "private bailout."
5) Also as a result of #3, Americans can confidently save up for a retirement nest egg or save up for a big-ticket item purchase. It also means Americans can put down larger-sized down payments for loans, which means loans are far more likely to be paid back in full.
6) Because we no longer impose taxes on earning money, there will be a GIGANTIC land rush of foreign money into the USA--an amount that could reach WAY over US$10 TRILLION in addition to the repatriation of American-owned liquid assets mentioned in #4. It also means foreigners will rush to open US subsidiary operations of foreign companies, too.

In short, just the potential of over US$25 TRILLION in repatriated and new liquidity entering the US financial system is a huge reason FairTax should replace the broken-down income tax system.

[PGalt]

Good post, thanks/BUMP! Thanks for the ping, Taxman & Man50D. Great thread.