...'cause this ia what awaits us, no matter who wins the elections:
On Dec. 31, the George W. Bush-era tax cuts are scheduled to expire, raising rates on investment income, estates and gifts, and earnings at all levels. Overnight, the marriage penalty for joint filers will spring back to life, the value of the child credit will drop from $1,000 to $500, and the rate everyone pays on the first $8,700 of wages will jump from 10 percent to 15 percent.
The Social Security payroll tax will pop back up to 6.2 percent from 4.2 percent under the deal approved Friday by Congress. And new Medicare taxes enacted as part of President Obama's health-care initiative will for the first time strike high-income households.
The potential shock to the nation's pocketbook is so enormous, congressional aides have dubbed it "Taxmageddon." Some economists say it could push the fragile U.S. economy back into recession, particularly if automatic cuts to federal agencies, also set for January, are permitted to take effect. . . .
The tax shock is set to occur after the Nov. 6 election but before the new Congress — and potentially a new president — take office two months later. While the outcome of the contest is likely to color the tax debate, Obama will either be freshly reelected or on his way out and, therefore, free to play hardball with Congress.
White House officials say Obama will not sign another full extension of the Bush tax cuts, as he did in December 2010. Obama is demanding a partial extension that would preserve the cuts for middle-class taxpayers but permit rates to rise on household income over $250,000.http://www.washingtonpost.com/business/economy/end-of-payroll-tax-holiday-sets-up-harder-hit-for-taxpayers/2012/02/16/gIQAnxqTMR_story.html
Okay... this will be decided by the lame duck Congress and the potentially lame duck President (unless he is re-elected, which I still think is likely). Doing nothing or being deadlocked means the tax cuts will all expire. If the Republicans hold the House (pretty much a sure bet), take the Senate (a very likely bet), and take the presidency (roughly even money to a slight long shot at this point), then they will have an opportunity to act on an urgency basis to extend the current tax system for another year, retroactively to the beginning of 2012. They should be able to use the budget reconciliation process to avoid a filibuster.
Ultimately, the tax system needs to be completely revised to lower rates and eliminate most deductions, thereby to greatly simplify it and make it more fair by eliminating favored treatment for some entities and activities.
So.. the way I see it, should government continue to be divided, there will be war in 2013 over the tax system. Since the Bush tax cuts will expire without action, massive tax increases on many Americans will occur.
....Warph
Quote from: Warph on March 18, 2012, 05:45:44 PM
So.. the way I see it, should government continue to be divided, there will be war in 2013 over the tax system. Since the Bush tax cuts will expire without action, massive tax increases on many Americans will occur.
....Warph
I think Mr Obama will be prepared (heset the wheels in motion last Friday).... but will the citizens?
Here's why I think so... Martial Law: http://www.cascity.com/howard/forum/index.php/topic,13386.0.html (http://www.cascity.com/howard/forum/index.php/topic,13386.0.html)