Since before they were passed, the “Bush tax cuts” were demonized by the media and the Democrats (redundant?) as being solely for the wealthy. Like so much leftist rhetoric, it simply isn’t so.
The tax cuts enacted under President Bush (43) created a 10 per cent bracket, increased child tax credits, and eliminated the marriage penalty, among other things. This writer must be wealthy because all of these benefited my family.
One would think that the last thing the government would do is allow these common-sense reforms to expire at a time when fewer Americans are working than when President Obama took office. But that is exactly what will happen on Jan 1, 2013.
The House has passed a bill to extend the current tax law for one year, giving the newly elected Congress and President time to hammer out the details of what the tax code should look like going forward.
The Democrat-controlled Senate – which has yet to meet its obligation to pass a budget in more than 3 years – will not even bring the bill to the floor for a vote.
The changes will represent the largest tax increase in the history of the United States, taking nearly a half-trillion dollars out of the already-struggling private economy. The changes will affect every taxpayer. Here’s a few:
- The 10 percent tax bracket will go away, with those filers absorbed into the 15 percent bracket. (A 50% increase.)
- The marriage penalty will be restored. This penalizes married filers by making their exemptions less than double those of single filers.
- The Child tax credit will be reduced by half, from $1,000 to $500, directly affecting the tax burden of families with children. This credit phases out beginning at incomes of $75,000/$110,000 (single/married), hardly a “tax break for the rich.”
- The Payroll tax for Social Security (not part of the original Bush cuts, enacted under President Obama) will go from its current 4.2 per cent back to 6.2 per cent, a 47 per cent increase. This will directly affect the take home pay of every working American, and the income of every business – whose share of the tax will also rise. (Multiply the amount on your last pay stub by 1.47 to see how much.)
- Small businesses aren’t left out, either. There are several changes coming your way, including how you expense purchases and new taxes related to the implementation of Obamacare.
All of these (and many more not mentioned here) make it imperative that all of us understand what’s at stake in this election. If you believed that these tax cuts were for the rich you owe it to yourself, and indeed to your fellow Americans, to educate yourself in the two weeks that remain before we go to the polls.
This is our best chance to decide what kind of country we are going to be. Does the money you earn belong to you or to Washington?
Ronald Reagan said that “The government can’t control the economy without controlling people.” How much control over your life do you want to surrender?