Adventure is worthwhile - Aesop

Calculate the impact of Congress letting the Bush tax cuts expire..
by AlexinCT

Have fun, and find out how much this is going to cost you if these people don’t wise up. My numbers showed a 4.5% increase in taxation liability. That was a big chunk of change that I would now not have. Guess while government gets fat, the private sector has to tighten its belt even more. There is a cost for all that social justice stuff, and that cost is always born by the regular Joe, regardless of what the commies that push that crap tell you.

Update: Even collectivist CNBC has to run articles pointing out that any economic recovery would be hampered if tax cuts are allowed to expire. My first question is: “What economic recovery?”. The next is can these people ever stop the Obama propaganda?

The cuts were enacted in 2001 and 2003 under President George W. Bush and covered those earning more than $250,000, but they are set to expire at the end of this year.

Last I remember, and even Bush hating Wikipedia agrees with that, these tax breaks were for ALL AMERICANS, not just those making $250K and more. Oh sure, these morons at CNBC used this wording on purpose and will point out that the they chose that threshold because Saint Obama says that’s the break between rich and poor, but it is a lie intended to again make it look like evil Boooosh only cared about the rich. In fact, these were this tax act was the on that enacted the idiotic changes that left such a huge portion of Americans free of the need to pay any taxes, leaving too many amongst them without any tax obligations, and figuring in their twisted world that tax hikes, since they didn’t pay any anyway, were a fine idea.

Anyway, here is the gist of the story:

Deutsche said the drag on gross domestic product should they lapse could be as much as 1.5 percent, with the more likely impact at 1.1 percent. The impact would be worse, the analysts said, if Congress fails to fix the Alternative Minimum Tax, which was enacted in 1969 to make sure rich people pay taxes but was never indexed for inflation, and thus is now hitting middle-income workers.

“In a worst-case scenario, allowing the Bush tax cuts to expire and failing to fix the AMT could result in (1.5 percent) of fiscal drag in 2011 on top of the 1 percent fiscal drag we expect to occur as the Obama fiscal stimulus package unwinds,” Deutsche said in a note to clients. “If the recovery remains soft/tentative through early next year, this additional drag could be enough to push the economy to a stalling point.”

Don’t expect the morons holding this Congress hostage to be smart enough to figure out that letting any portion of this tax cuts expire is a bad idea. They can just pass another trillion dollar stimulus bill and deficit spend a few more trillion on top of that, to perk up the economy. After all, the last patronage bill and the $1.4 trillion dollars they flushed down the hole this year worked so well.

“As we have noted, this is not going to be an easy process politically, and it may well take a significant negative event in financial markets to steer the US political system to do what needs to be done.”

What really needs to be done is a massive rollback of the social justice state. Let people earn what they have. Not steal it from others or work in government (same thing as stealing it from others).

Posted by AlexinCT on 07/29/10 at 06:28 AM (Discuss this in the forums)

Comments

Posted by on 07/29/10 at 07:51 AM from

I’ll lose an additional few thousand dollars. Guess I can skip going on vacation.

Posted by on 07/29/10 at 10:47 AM from

This tax analyzer you linked to calculates on the basis of ALL the Tax cuts expiring, but I don’t think thats what the admin. is planning to do.

Posted by AlexinCT on 07/29/10 at 11:48 AM from

This tax analyzer you linked to calculates on the basis of ALL the Tax cuts expiring, but I don’t think thats what the admin. is planning to do.

That’s what the 3rd column - the first being all tax breaks being removed, and the second being the current state - supposedly shows as a “best case” scenario of the Obama changes.

Even so, the changes under Obama are going to hit the people that have, or would have, the money to invest, and thus to create jobs, the hardest. If you are currently unemployed, get ready to live at the mercy of government largesse for a long time. If you are employed, fear for your job and the very real possibility you will end up unemployed and having to depend on the generosity (always with other people’s money) of government to live. Don’t expect these increased taxes to make much of a difference in our deficit spending either, because I guarantee you that the projected $1.4 trillion hole in next year’s budget will end up closer to $2 trillion anyway because of the shenanigans of this current congress.

Posted by on 07/29/10 at 02:18 PM from

these tax breaks were for ALL AMERICANS, not just those making $250K and more

The people that got the largest percent of their taxest cut were the poor. Millions of poor people got a tax cut of 100%.

Many of them actually went from paying some taxes to paying negative taxes through the Earned Income Tax Credit.

Posted by on 07/29/10 at 03:14 PM from

The people that got the largest percent of their taxest cut were the poor.

This is a valid point that oponents of the cuts (and of Bush in general) ignore, preferring to state that the rich got the biggest tax cuts, and assuming that the masses are too dumb to under stand the difference between the absolute dollar value of a tax cut and the rate of a tax cut:

$250k income x 4% tax cut = $10k tax cut
$50k income x 8% tax cut = $4k tax cut

See… The rich guy got the bigger tax break.. Percentages be damned. (I know those figures are arbitrary, just used for illustrative purposes).

I know “the wealthy” make for great rhetorical fodder on the campaign trail, but I really would like to see someone runningn for election acknowledge that these evil greedy rich elite are actually also the ones who take the business risks required to real create jobs.

Posted by on 07/29/10 at 07:33 PM from

I’ll lose an additional few thousand dollars. Guess I can skip going on vacation

Why not stay at muirgeo’s? He’s got a vacation home :)

Posted by on 07/30/10 at 06:01 AM from

Why not stay at muirgeo’s? He’s got a vacation home :)

Okay, now THAT made me laugh.

Posted by on 07/30/10 at 07:25 AM from

Why not stay at muirgeo’s? He’s got a vacation home :)

I’m allergic to cheap plywood shacks…

Posted by AlexinCT on 07/30/10 at 07:52 AM from

I know “the wealthy” make for great rhetorical fodder on the campaign trail, but I really would like to see someone runningn for election acknowledge that these evil greedy rich elite are actually also the ones who take the business risks required to real create jobs.

Every time I hear a collectivist moron talk about how unfair it is for the rich to not pay their fair share of taxes, I think of two things.

The first is that I never have seen anyone poor give people a decent job. These days where big government is touted as the answer to all ills by the collectivist twits, I guess you should add with the exclusion of the usual parasitic government bureaucrats that thrive on propagating & maintaining misery. That’s what the “War on poverty” and “Social justice” both are all about: making poverty a lucrative employment vehicle. It is also why they will never get rid of it, and instead will work hard to expand the number of poor and needy. But the statement stands: no poor people create jobs that actually contribute to the economy, the ones in the private sector, and the bulk of the government jobs created, are just sucking us dry and making even more people poor.

The second is that the rich don’t pay taxes, unless they are embarrassed into it, I should add in honor of John “Did I tell you I was in Vietnam and won 3 Purple Hearts” Kerry. These ultra rich leftists have accountants galore to help them avoid as much off it, lobbyists that create nice loopholes for them directly or for their competition chocking corporations, and most simply ignore the very laws they would send all of us to prison for a long time, if we deigned to do the same as they do. Case in point this list, which isn’t by far complete, as I bet that just like with cockroaches and rats, for every one you see (or in this case catch not paying taxes) there are hundreds that you don’t see (or catch ignoring their taxes).

If you are worth between $100K and $ million you will likely be a republican. If you are worth more than $5 million, odds drastically lean towards you being a democrat. That’s not a coincidence. There is a reason why all these democrats are stinking rich but want to make sure nobody else gets there I am sure. The irony is that left accuses those trying to get rich of being the greedy ones helping these democrats fend off all others trying to get rich, in direct contrast to their “social justice” ideology. Talk about stupidity.

I’m allergic to cheap plywood shacks…

What about the vermin sure to co inhabit the place with muirgeo1? Surly if you could overcome your allergy for the plywood shack you would then have to deal with that too?

Posted by on 07/30/10 at 08:46 AM from

What about the vermin sure to co inhabit the place with muirgeo1? Surly if you could overcome your allergy for the plywood shack you would then have to deal with that too?

Would a .45 auto be overkill for shooting vermin? On second thought, I’ll just torch the place and go camping…

Posted by HARLEY on 07/30/10 at 08:00 PM from