Expiring tax cuts hit taxpayers at every level

Associated Press ^ | September 16, 2010 | STEPHEN OHLEMACHER

[reaganaut1]

Here's some pressure for lawmakers: If they don't reach agreement on extending soon-to-expire Bush-era tax cuts, nearly all their constituents back home will get big tax increases.

A typical family of four with a household income of $50,000 a year would have to pay $2,900 more in taxes in 2011, according to a new analysis by Deloitte Tax LLP, a tax consulting firm. The same family making $100,000 a year would see its taxes rise by $4,500.

Wealthier families face even bigger tax hikes. A family of four making $500,000 a year would pay $10,800 more in taxes. The same family making $1 million a year would get a tax increase of $52,300.

The estimates are based on total household income, including wages, capital gains and qualified dividends. The estimated tax bills take into account typical deductions at each income level.

Democrats have been arguing for much of the past decade that tax cuts enacted in 2001 and 2003 under former President George W. Bush provided a windfall for the wealthy. That's true, but they also reduced taxes for the working poor, the middle class, and just about everyone in between.

Those tax cuts expire at the end of the year, setting the stage for a high-stakes debate just before congressional elections in November. If Congress fails to act, families at every income level will see more taxes being withheld from their paychecks come January.

The tax cuts enacted in 2001 and 2003 reduced marginal income tax rates at every level. They also provided a wide range of income tax breaks for education, families with children and married couples.

Taxes on capital gains and dividends were reduced, while the federal estate tax was gradually repealed, though only for this year.

[reaganaut1]

Impossible -- Obama told me the Bush tax cuts went only to the rich /s.

[fightin bronco]

The tax cuts for the “wealthy” will have the most dramatic effect on the 50k family. They will have to pay 6% of income more in tax, this is the highest percentage in the examples listed.

[Cicero]

Even the Ass.Press has noticed. Watch out, Obama, it’s going to be very hard to convince people that these are the OBAMA TAX CUTS.

[IrishCatholic]

bookmark.

[johnthebaptistmoore]

Oh dear! We ALL better vote for leftists on November 2! /s

[Hojczyk]

Rush was talking about this...giving advice to OBAMA...

[Leftism is Mentally Deranged]

The democrats don’t care. They want to destroy the incentive to work and make everyone dependent on their corrupt government.

They hate people who work at a job. They hate them and call them privileged and biased.

They love people who do not have the mental equipment to get a well paying job. They love people who would rather loaf and collect a check and then in gratitude go out and vote democrat.

[griswold3]

You do realize that the $70B/yr predicted by the CBO does NOT include an AMT ‘patch’.
The Congress will not NOT patch the AMT. Therefore there will NOT be the tax revenues available. But as Obama says, it’s not about revenue, it’s about ‘Fairness’ or so he told Charlie Gibson.

[jrushing]

Obama told me the Bush tax cuts went only to the rich.

They didn't even mention the bottom end that goes from 10% to 15%. I wonder how much more they'll pay?

[colorado tanker]

Little did the Dims know when they crafted the AMT all those years ago that it would grow up to become an incredible expanding tax targeted to hit blue states the hardest.

[Lucky9teen]

A typical family of four with a household income of $50,000 a year would have to pay $2,900 more in taxes in 2011

Well that would be me (although we have 6 in our family)... NEAT!

Obama is such a frakkin liar!!!!!

OBAMA: I want to provide a tax cut for 95% of Americans. If you make less than a quarter of a million dollars a year, you will not see a single dime of your taxes go up. If you make $200,000 a year or less, your taxes will go down. Now, Sen. McCain talks about small businesses. Only a few percent of small businesses make more than $250,000 a year. The vast majority of small businesses would get a tax cut under my plan. And we provide a 50% tax credit so that they can buy health insurance for their workers, because there are an awful lot of small businesses that want to do right by their workers but they just can’t afford it. Some small business owners can’t even afford health insurance for themselves.

[Diogenesis]

[M. Espinola]

Hopefully the November elections conservative victory results will swiftly reverse, or totally kill, the Obamatrons massive across-the-board tax increases, plotted for January 2011.