Letting the "Bush" tax cuts expire is one of the dumbest things this administration could do right now.
I also heard that the Obama administration is thinking about ending the mortgage interest and child tax credits.
So basically Obama will raise taxes on those he said he wasn't going to raise taxes on....forget the fact that every tax is paid by working and poor people and not the rich like the dems would have people foolishly believe.
These guys are so lame they don't even get the fact that their tax revenue would be much higher if all they instituted were a nominal consumption tax.
Taxing productivity will not allow an economy to recover.
If they take away the mortgage interest and child tax credit, the Democrat party will be completely ruined in 2012. So it begs to reason, I do not believe they are this stupid. What reasons are they doing this for and for what purpose?
Anyone read the communist goals for America, http://neprimer.com/1963ComGoals.htm. I may sound way out there but I was once a left wing asshole.
We are way overtaxed as of now.
They'll wait until after the market collapses to renew these. By then, the downward spiral will be in full force.
The Tea Party came too late.
Read this article. The top 5% earners paid 58% of the taxs in 2008. The top actually do pay more than any others. I am in no way taking side with the dems. They want every one to feel like the top should pay it all.
Because they created so many jobs between 2003 and now?
Tax cuts worked wonders under Reagan.
Yeah they worked so well that he decided to increase taxes like 10 times after he initially cut them.
Yeah, saving social security and trying to minimize the debt increase because congress wouldn't pass his budgets did end up hurting the economy a bit. Do I need to start posting dates of the tax increase? Or better yet we can ask ZEB I am sure he would be more then happy to inform you about that time in history.
Good thing his two cuts where so massive they still kept the economy going.
Unemployment was well under control and even getting better... then something odd happened:
Raising them worked better under Clinton. Job creation plus no deficit. Or we could go back to Ike.
Let's take the reverse of the standard wisdom that allowing small business to keep more of their money will help the economy. Let's use liberal logic; taking more money from small business will help the economy. That makes perfect sense in the land of liberal logic. but only in that land does it make sense.
And once again keep in mind that raising taxes on those making over 250-k will effect every "S" and "LLC" corporation as the money flows through the business as personal income to the owner(s).
Okay Newt Gingrich, let's stick to reality here. Raising income tax rates on personal income over 250k imapcts only people that take home over 250k in personal income, fairly simple concept. Not every owner of an S corp or LLC takes home over 250k in personal income.
While you're probably technically correct in that not 100% of all LLCs make the owner more than 250K, you are substantially wrong in terms of taxation. LLCs are flow-through entities where the business's income is treated AS THE OWNERS [u]PERSONAL[/u] INCOME. This does NOT mean that the owner has 250K of disposable income. Small business owners re-invest heavily to compete and keep themselves afloat and what ends up happening is that much, even most, of that taxable 250K "income" goes back to the business to keep it operating.
Therefore raising the income tax rates on personal incomes above 250K hurts small-businesses a helluva lot AND on top of that materially breaks Obama's promise to not raise taxes on people with personal incomes less than 250K, even if it "technically" does not apply because the owner's make more than 250k on paper tax forms.
What you are effectively doing with this is deeply slashing the business's operating budgets and helping to kill small-business at a time when we should be encouraging more small-business friendly policies.
Businesses are taxed on profit/loss not revenue. Any income that the owner re-invests in the business as capital or operating expense should be tax deductible for an LLC. So, if the owner is getting taxed on 250K, that is their personal income that they have NOT re-invested in the business.
At least, that's the way I filed my federal tax return when I owned an LLC.
Accounting is my job, I know how taxes work. I'll quote from my old CPA exam regulation book if you really want. You're not recognizing the difference between revenue and profit, and you're twisting the facts to fit in to your ideology that tax increases in any form are bad.
If you're against raising personal income tax rates that's fine, but don't peddle this false premise that letting the Bush cuts expire is going to kill most small business owners because it's just not true. You're claiming that all revenue is taxed, which as explained above is not how it works at all. I'll explain this as simply as possible:
Revenue - Cost of Goods Sold = Gross Profit (aka income)
Specifically dealing with Obama's plan to extend Bush's cuts for everyone except for the top, here is why the plan doesn't crush small business: