Six Months to Go Until The Largest Tax Hikes in History

Six Months to Go Until The Largest Tax Hikes in History

www.atr.org

In just six months, the largest tax hikes in the history of America will take effect.  They will hit families and small businesses in three great waves on First Wave: Expiration of 2001 and 2003 Tax Relief In 2001 and 2003, the GOP Congress enacted several tax cuts for investors small business owners, and families.  These will all expire on January 1, 2011:

(visit the link for the full news article)


Related News Links:
thehill.com
www.elpasotimes.com
www.latimes.com
m.cnbc.com

This story was buried in small print. Read the source for all the info. These are the largest tax hikes in US history under a Congress that arguably does not represent most Americans. Check out the related links for a list of White House staff salaries and to see how protecting American citizens from violence on their own border is NOT what your tax money pays for (one of the PRIMARY duties of the US Gov). Also see how unemployment is increasing as well as people giving up looking for work.

www.atr.org
(visit the link for the full news article)

These taxes hikes take effect in 2011. Most of us that have our taxes deducted from our checks will feel the effects right away. Some people with certain kinds of healthcare coverage (such as healthcare reimbursement accounts like Aflak) will no longer be able to use them for prescription drugs (the beginning of the effects of Obamacare). Teachers will no longer be able to take classroom expense deductions amd tuition will no longer be able to be deducted.

This is ridiculous! During one of the worst recessions in US history, which even Forbes Magazine predicts to turn into a great depression, Congress is going to push us as individuals and small businesses and even teachers and students deeper in the hole. Sounds like a good plan to enslave us even more to me. TPTB are really pushing their luck here.

I like how this story was buried on the news site I go to too. In the bottom of the page so no one would notice.

Again, unity of "the people" is essential in order to let "them" know that we are not going to take it anymore. Maybe people should start saying the following:
"I WILL NOT COMPLY!" Why should we comply with a government that do not care about its people? They think that they know what's best for us... All they care about is their own pockets, and their own power over the people. If we don't accept to be governed by these creeps, then there's nothing they can do about it, and their government falls. The problem is that so many are still asleep, and don't know/care about all of this. The job of the "awakened" is to start letting these people know what's really going on!

Oh you mean those tax cuts that benefited the super rich?

Those tax cuts that exploded the deficit?

That tax cut which we had to borrow from China to pay which devalued our currency even more.

You must mean those tax cuts that were going to create millions of new jobs when rich people got to keep more of their money right?

Oh wait...the rich got to keep their money, exploded our deficit and started ZERO new jobs in the process.

Chalk one up for the Conservative failed ideology.



[edit on 2-7-2010 by AllexxisF1]

[edit on 2-7-2010 by AllexxisF1]

*sigh* more destruction of the middle and lower classes. unemployment runs out, taxes go up (most of which will go towards paying interest on our out-of-control national debt).

my plan these days is to hope for the best, keep my head up, and try to be a positive influence. there is no way we can turn back these types of policies. we are quite literally OWNED by various corporations and foreign countries. if everything goes to crap, ill wait for the violent revolutionaries to start breakin stuff while i head for the hills to grow my own food.

i dont see any other solutions at this point unless a lot of people start caring and searching for peaceful resolutions in the near future.

reply to post by dbloch7986


Don't be surprised if these tax increases get deferred should the republicans win control over one house of congress in November, at least we can hope so. Based on the current refusal to pass extended unemployment benefits with out corresponding spending cuts can give us some hope that they will hold firm here.

These tax increases make no sense, like tax increases in general. Look for the markets to get hammered as folks take gains at lower rates, defer income and then subsequent federal programs for which there is no money to compensate people who can't afford the basics based on the new tax burden. Jobs will be lost by the thousands, requiring more government spending and the vicious cycle will continue.

Its really easy to support taxes - sounds good, "only the rich pay the higher taxes", etc. Tell that to the person living a basic life on his 401K who will see not only the value of that account get hammered, but also the capital gains on the sale of secutities he need to execute to supply him with income.

The law of unintended consequences.

It is counter-intuitive to suggest that lower taxes increases receipts to the government, but that is the way it works. Create incentives to make money and folks will make more money and pump more into the system. Remove the incentive and folks will pull back and less money flows into the government despite the fact that the tax rates will go higher.

We learned this lesson before. The emotional appeal of raising taxes is too great and the political power of "taxing the rich" is too easy. We'll all find out that the "rich" impacted by these tax increases are not that "rich" at all. The wealthy folks will simply pull their money out of the equity markets and put it into cash. Will they earn less of a return? Sure, but they will do what they can to preserve their wealth. If you have cash or cash equivalents, you will get rich in the next 5 years. At some point the government is going to have to suck the money they're printing out of the system and to do that, they will have to raise interest rates. Sure inflation will be a factor, but throwing money into a 10+% tax free bond is a good deal, if you have the cash. Face it, as much as the socialists like it, the rich will be in cash by the end of the year and they will exploit the folly of our current economic policy in the coming years. Its the person who is living on marginal investment income who can not afford to live on 2% interest income and dividends that these cash instruments deliver, both subject to increased taxes that gets hammered, not the person with several $million or more. Look for real estate to get hammered again as well.

Be interesting to take a look at the "blind" trusts held by Herb Kohl and John Kerry, two of the gents pounding the table for higher taxes. Where will their $billions be by the end of the year? It will be in cash. They are not going to ride the equity markets and their investment managers would likely be subject to criminal charges if they did not move their assets into safer, tax sensitive instruments.

All this is is and underscoring of the lack of courage of our political leaders to take on the challenges that confront us.

No, really, keep giving the super rich more tax breaks because they make so many new jobs when you do that. Trickle down does work, really, St. Ronnie told me so.

It absolutely amazes me how sheep, yes sheep come to fight against their own interests for the sake of the super rich.

These Bush tax breaks gave the VAST majority of us about $300 in savings but gave the super rich $100,000 of thousands in savings.

What did they do with it? what rich people always do with it, hoard it.

Tax the hell out of the super rich and use the money to pay down the debt, which increased the value of the dollar in your back pocket.

How do you all not get that?

How did you miss the last 12 years that proved that trickle down does ABSOLUTELY NOT WORK.

reply to post by AllexxisF1


What does not work is the taxing of effort. Ronald Regan through GWB (yes, including Clinton) pursued a low tax economic policy (not low enough, but low) and the market expansion was massive.

Did the rich get richer? Thankfully they did and so did a lot of other folks who rode equity markets.

The rich will always be rich. The rich will use various strategies to ensure that their wealth is protected. Get over it.

High tax policy, ala Jimmy Carter does not work. Its failed everytime it has been tried. Personally, I like the current policy. I'll sit back and wait until the socialists foul the economy to the extent that I'll be able to get 15% on a guaranteed muni bond and sit back and laugh at all of the folks who were sitting around praying for higher taxes, which drove the rates up.
People who run their own money or have folks who can do it competently will always make more money, be it commodities, real estate, currency or debt instruments. At given times, each has favorable tax advantages and will be expoited until policy changes and then the money will move accordingly.

Keep the economy strong and the equity markets attractive and jobs expand and people make money and more money flows into the government.

Tell me how a death tax does anything but kill small businesses, forcing them to sell to pay the government? Anyone with any reasonable amount of money can spend $2K to secure their assets with trusts and keep them away from the government at the time of their death and they are fools not to do so. All a death tax does is make folks who are bitter and hate the successful in society feel good. "Oh, its about time people like Paris Hilton got her fair share". Do you really think that Paris Hilton would owe the government a nickel if her parents died? If you do you're a fool. You probably feel good about the death tax and I'm happy you feel good, but you need to think about why you feel good. You're feeling good because you like class warefare. The rich could care less about class warfare.

Class warfare has always been a war between the middle and lower classes of society. Always has and always will be.

I swear it absolutely amazes me how right wing media has gotten the lot of you believing in make believe. You truly live in fantasy world.

Reagan raised taxes three times.

Bush Sr. raised taxes.

Bill Clinton raised taxes and balanced the budget which gave us a surplus.

George Jr. Little boots came in an put in a massive tax cut that completely and utterly favored the uber rich.

The market contracted, no jobs were created and when all was said in done our deficits sky rocketed, the dollar devalued, the bubble burst and crashed the entire world wide economy leaving massive unemployment and loses in retirement funds.

Now step out of your fantasy land and tell how what I just wrote did not happen?

Stop listening to right wing media. They lie to your face every single day just so they can get their rich friends even richer.

Good God man! How do you not see this?



[edit on 2-7-2010 by AllexxisF1]

Originally posted by AllexxisF1
No, really, keep giving the super rich more tax breaks because they make so many new jobs when you do that. Trickle down does work, really, St. Ronnie told me so.

Without even getting into a debate using college terms like 'multiplier effect' and such...

How about a little less ranting, a little more reading from you?

The 10% tax bracket is becoming 15%. So it's the super rich that are going to get hit huh? Now personally, I do believe that George Bailey was the richest man in town, but these tax increases are complete and utter economic incompetence.

If you are going to make a bunch of rants, hey great, that's your prerogative, but why not try something like maybe READING THE DAMN ARTICLE FIRST.

[edit on 2-7-2010 by 11andrew34]

reply to post by AllexxisF1


Sadly it is not the super rich we are talking about here. It is everyone. And due to the law of percentages a cut of $300 at my level would likely equate to $100,000 at the higher tax bracket, even if it was only a 5% cut for both brackets.

Your logic is that we should unfairly tax those who make more money simply and only because they make more money. That is not right nor is it fair. Some of those people did and do work hard for their money. Just because you don't have as much money as someone does not mean they should have to put more into the collective pot than you.

Taxing the rich unfairly will only cause them to find more ways to contribute less money to our economy. And I dont blame them either. I would be spiteful too.

reply to post by dolphinfan


You're absolutely right. Increasing income taxes on any results in a decrease of revenues for the government. This is because the release of tax money to individuals, rich or poor, allows them to spend the money which flows into corporations who have much higher tax rates than we do as individuals and so they have higher income and therefore the governmemt gets more money.

They do not track well enough where their money comes from. Large corporations, large businesses and businesses in general are where they make the most money.

All that higher taxes on individuals are going to do is tank the economy yet again, just as you said.

I am a fan of a federal sales tax as opposed to income taxes. I think it would be much more prolific for everyone in the long run. I got excited when Obama spoke of a VAT tax until I found out it was on top of all the tax we already pay.

Originally posted by AllexxisF1
Oh you mean those tax cuts that benefited the super rich?

Those tax cuts that exploded the deficit?

That tax cut which we had to borrow from China to pay which devalued our currency even more.

You must mean those tax cuts that were going to create millions of new jobs when rich people got to keep more of their money right?

Oh wait...the rich got to keep their money, exploded our deficit and started ZERO new jobs in the process.

Chalk one up for the Conservative failed ideology.



[edit on 2-7-2010 by AllexxisF1]

[edit on 2-7-2010 by AllexxisF1]

Bingo!

You hit the nail on the head with that post. These tax cuts are a big part of our current problem.

Here's some data on the relationship between taxation and prosperity. You might be surprised.
Taxation and prosperity

Edit to add: Just because these provisions are ending, does that mean that taxes will increase? Who knows what will happen in the next six months.


[edit on 2-7-2010 by suicydking]

reply to post by suicydking


Yay!! Everybody post "facts" and "charts"

Taxation and Prosperity

reply to post by dolphinfan


Where are poor folks going to get money to play the market like you talk about in your post? The things you are talking about are things that only people with money to spare can participate in.

Like other posters have said, I do not see the rich creating any jobs. They do play the market however. I will give them that.

reply to post by AllexxisF1

Actually, YOU are the one that doesn't understand what is going on, my friend. These tax increases will destroy small businesses and further impoverish what is left of the middle class. Count on it.
Do you think that anyone in the federal government gives a rat's behind about fairness? Anyone? Government is STILL run by the same criminals that got us into this mess, do you think that they care about getting us out? Do you think they will get serious about the Wall Street and Big bank criminals? Do you seem them slashing the war budget? Or rooting out waste in government?
What SHOULD happen will not, and that is a massive reduction in the size and scope of government. That would be a LOGICAL first step, but the exact opposite is happening. They are gearing up to extract more blood from you buddy. Cheer them on!
Don't be fooled, the bankers need their interest, and they are counting on YOU, and you are on board, huh?
THAT is what is pathetic.

Originally posted by thisguyrighthere
reply to post by suicydking

 

Yay!! Everybody post "facts" and "charts"

Taxation and Prosperity

I appreciate your point. You can find a chart to support any opinion if you try hard enough.

For what it's worth, the charts I posted are a direct analysis of what has happened in THIS COUNTRY since the early 1900's. The article you posted references data from around the world and generates assumptions based on that data. It's doesn't include hard data from the US.

The point of your article sort of reminds me of the 'losses' that the movie industry claims due to piracy.

reply to post by AllexxisF1


You do realize that China did not save the U.S. from collapse.

It was the U.S. taxpayer.

Just so you know.