Obama decides to put a stake through the heart of our economy (Part 2)

 Print Story: Backdoor taxes to hit middle class – Yahoo! News

Yahoo News pulled their link (I guess the White House is afraid of public reaction) so here is another from the WSJ.

I guess Obama is so mentally imbalanced that he just can’t control his impulses to raise taxes.

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.

Not surprising for a person who cannot discern the difference between lying and campaigning.

While the administration “claims it “ is focusing its proposal on eliminating tax breaks for individuals who earn $250,000 a year or more, middle-class families will face a slew of these backdoor increases.

Rule of thumb: Whenever a “Progressive” like Obama promises to raise taxes only on the evil “Rich” people:

  • Remember the definition of the word “Rich” is subject to daily reinterpretation
  • Just looking over the past 20 years, the “Progressives” always start at “Rich” being defined as those who earn more than $250,000 then $200,000, then $100,000 and then anyone who earns anything.

When, (not if as stated in the article)  the targeted tax provisions enacted under the Bush administration’s Economic Growth and Tax Relief Reconciliation Act of 2001 are allowed to expire on December 31,

    • the top-tier personal income tax rate will rise to 39.6 percent from 35 percent

lower-income families will pay more as well:

  • the 25 percent tax bracket will revert back to 28 percent;
  • the 28 percent bracket will increase to 31 percent; and the 33 percent bracket will increase to 36 percent
  • the 10 percent bracket is eliminated
  • the Alternative minimum tax (AMT) will now affect an estimated 25 million taxpayers with incomes as low as $33,750 (or $45,000 for joint filers instead of today’s $46,700 for singles and $70,950 for married couples filing jointly

Investors will pay more on their earnings next year as well, with the tax on dividends jumping to 39.6 percent from 15 percent and the capital-gains tax increasing to 20 percent from 15 percent. The estate tax is eliminated this year, but it will return in 2011 — though there has been talk about reinstating the death tax sooner.

Middle-class families also will find fewer tax breaks available to them in 2010 if other popular tax provisions are allowed to expire. Among them:

  • Taxpayers who itemize will lose the option to deduct state sales-tax payments instead of state and local income taxes;
  • The $250 teacher tax credit for classroom supplies;
  • The tax deduction for up to $4,000 of college tuition and expenses;
  • Individuals who don’t itemize will no longer be able to increase their standard deduction by up to $1,000 for property taxes paid;
  • The first $2,400 of unemployment benefits are taxable, in 2009 that amount was tax-free.

All of this will have a catastrophic effect on the economy.  Personal and Small Business spending, the primary economic drivers for the economy, will be decimated.

I hope you all keep this in mind when you vote in 2010.  If you do not dramatically shift power away from the “Progressives” in BOTH parties, you and your children will suffer another double dip Depression – i.e. another Obama Depression.

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