GOP seeks to cut Social Security for the poor and middle class
Do Nothing Congress Home Base – Republicans are at it again as today they demanded that any tax hikes on the wealthy must be coupled with a cut in spending on the poor by trimming cost of living increases for Social Security recipients.
Democrats, of course rejected this ludicrous proposal for the Republicans to further gut those most in need. The negotiations on the fiscal cliff continues to no avail. Lawmakers convened in a rare Sunday session that amounted to basically nothing more than a relief society session of nothingness.
Mitch McCconnell in a desperate temper tantrum telephoned the Vice President Joe Biden in hopes that he would come in and facilitate a compromise.
“I’m willing to get this done, but I need a dance partner,” McConnell. “The consequences of this are too high.”
Oddly enough the give and take between parties has been going on for almost a year. In amazement both parties are insistent that they are working alone to save the world…when in reality only one side seems to consider the poor and helpless as individuals worth saving. Needless to say the Democrats consider this move by the Republicans as a step in the wrong direction.
“When Leader Reid received this recent offer he was taken aback and disappointed,” said a Senate Democratic aide granted anonymity to discuss the private talks. “We feel we are further apart than we were 24 hours ago.”
Republicans are already seeking to redefine what is considered wealthy in this country as an individual making over $500,000. They also claim that inheritance taxes must be taken away from the table and that the poor and middle class must sacrifice more to get this deal done.
President Obama offered adjusting the cost of living for social security earlier this month to Republicans as a negotiating chip but unfortunately but not surprisingly talks between the Republicans and the president on this issue fell apart soon after.
Both Democrats and Republicans have been at work *cough cough bullshit* all day trying to come up with a compromise on this issue but no avail. Only time will tell if the Democrats come back with a counteroffer.
The president had initially proposed raising tax rates on the wealthiest 2% of Americans but then later compromised with Republicans to move that bar up to $400,000. Needless to say this compromise wasn’t enough to satisfy the Republican counterparts. Alas the president needed to negotiate once more.
Democrats have been willing to entertain the higher $500,000 income tax threshold Republicans want, but have resisted coupling that with a 35% rate on inheritance taxes for estates valued at more than $5 million. Obama wants the estate tax to rise to 45% on estates above $3.5 million.
With hours left to come to a resolution on the fiscal cliff Obama may just instruct his Democrats to just force the hand of the Republicans and see how this shake out in the House and the Senate along with the American People. Although it seems as if the American people have already voiced their opinions on this matter it may take a fit of outrage for something to get done in this Do Nothing Congress.
Categories: Federal Tax, Income Tax, Tax Law Tags: federal income tax, federal tax, fiscal cliff, mitt romney, republican, Republican Tax, tax increase, tax pledge, tax reform
$4,000 tax hike for all
Washington- With the way things are heading with this do nothing Congress in regards to making a compromise to avert the fiscal cliff. Countless Americans will be the victims of a sizable tax increase after America falls of the impending fiscal cliff.
What a majority of Americans fail to realize is that their taxes have already gone up. Over 70 tax cuts expired at the end of 2011 which were not renewed. If Congress does not go back and retroactively extend them a typical middle class family could be hit with a $4,000 tax hike when they file their taxes in 2012.
Businesses as well fare to lose dozens of breaks that they have become accustomed to over the years. These tax increases will come from the lost of tax credits given for R & D, expansions or upgrades and tax breaks for financial companies with an overseas presence.
Even if this do nothing Congress does take action it could fare for a big confusing mess for taxpayers to figure out their 2012 tax bills.
“We’re really expecting this upcoming tax season to be one of the more challenging ones on record,” said Kathy Pickering, executive director of The Tax Institute at H&R Block. “For your 2012 returns there’s so much confusion about what will be impacted.”
Much of the squabble in Congress right now is focusing on NEW tax increases that will take effect next year. These Bush era tax cuts we have enjoyed for years and now they are scheduled to expire. Also a temporary tax credit on social security is set to expire as well.
Obama is proposing on extending tax cuts for everyone making $250,000 or less and letting tax cuts expire for those individuals that make more that that. If any of you have been following the tax rates enjoyed by the wealthy they currently enjoy not only some of the lowest tax rates in history, they also pay much less than those making less than them. One of the many joys of being able to hire your own accountants and being able to bribe those individuals responsible for making tax legislation decisions.
House Speaker John Boehner and other Republicans have said they are open to more tax revenue through reducing or eliminating unspecified tax breaks. Boehner finally conceded saying that he will raise rates on those earning 1 million dollars or more in exchange for very very deep spending cuts. A move that didn’t go over well with Obama. Although they say no news is good news this is at least a suggested attempt at negotiations between the two parties.
Unfortunately lost in this whole mess is the tax breaks that have already expired in 2011. Only time will tell if one of the worst congresses in history will get its act together and make some positive change for the American people.
Categories: Federal Tax, Income Tax Tags: do nothing congress, federal income tax, federal tax, fiscall cliff, income tax, republican, Republican Tax, take hike, tax increase, tax law
Tax hikes on the rich “negligible” for growth on the economy
Washington- A recent report was re released after Republicans tried to claim that tax hikes on the wealthy would be detrimental to growth in the economy. The report states that revoking the Bush era tax cuts on the wealthiest Americans will have a “negligible” impact on the economy. The report also states that the the Bush Era tax cuts did very little to help spur the growth of the economy. The report also stated that the Bush Era tax cuts helped fuel the income inequality among income classes.
“Analysis of such data conducted for this report suggests the reduction in the top tax rates has had little association with saving, investment, or productivity growth,” the study says. “It is reasonable to assume that a tax rate change limited to a small group of taxpayers at the top of the income distribution would have a negligible effect on economic growth.”
The study takes into account tax rates and economic growth that dates back to the world war 2 era. Needless to say Democrats pounced on the opportunity to prove to Republicans that tax cut for the wealthy don’t necessarily equate to growth and that the top two percent of earners should go back to Clinton Era tax rates when growth was substantial. Republicans, as they always seem to, complain and swear that raising taxes on the wealthy will only bring gloom and doom for the US economy.
“What this report demonstrates is at the core of the debate we’re having right now,” said Maryland Rep. Chris Van Hollen, the top Democrat on the House Budget Committee, adding that it “put a stake in the heart of the Republican argument that small increases in marginal tax rates for wealthy individuals somehow hurt economic growth.” He also noted that during the Clinton years with tax hikes the US economy was doing a lot better off than when Bush introduced his tax cuts.
“What this CRS report does is take away the last little fig leaf that [Republicans] had to justify big tax cuts for very wealthy individuals,” Van Hollen said.
“Republicans have simply failed to face up to the reality,” said Rep. Sander Levin (D-Mich.), the top Democrat on the House Ways and Means Committee. “I hope that this CRS report will add further impetus to the speaker to sit down with Republicans, because when I’ve talked to a few of them, I don’t think they’ve had this discussion.”
Republican lawmakers claim that the report was written by a left wing study group and that its findings are biased and therefore fallacious.
This is a continuing trend with Republicans denying the facts when they stare them point blankly in the face. Maybe this report will be the wake up call needed to raise taxes on the top 2 percent.
Categories: Federal Tax, Income Tax, Tax Law Tags: federal income tax, federal tax, fiscal cliff, income tax, republican, Republican Tax, Repulbican Tax, tax code, tax pledge, tax reform, tax the rich