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
Nike gets NO NEW TAXES
Oregon- Nike is proposing on being a job creator in Oregon in exchange for a freeze on their state taxes. This proposal could amount to hundreds of jobs for the state which has prompted legistlators to approve this measure as emergency legislation.
Critics of the approval are suspicious about the timing and intent of this special session. When other legislators were out on holiday break Oregon legislators came together and approved an emergency assurance to one of the largest shoe and athletic companies in the world.
This deal once again proves that Oregon will go to great lengths to protect this corporate giant and all it brings to the state. Money and power has once again tromped common sense and assessing fair taxes equally on all taxpaying parties.
“We have a wonderful, wonderful company that’s going to be remaining in Oregon because of what we’re doing here today,” said Democratic Sen. Ginny Burdick of Portland.
This Nike deal is completely unconventional in a world where tax cuts for the wealthy have become commonplace in the political world.
Due to its emergency nature the meeting cost taxpayers $13,000 and came right before the regular legislation was set to be held. With all of these circumstances the deal seems rather peculiar that it happened in such a manner.
Such factors led Kitzhaber to acknowledge the emergency legislative session was “extraordinarily awkward.”
With this initiative in place Nike has promised to make more than 500 jobs and invest at least $150 million dollars into Oregon’s economy. The bill could be signed as early as next week by the governor.
It is still unclear as to why the emergency legislation took place but one could surmise that Nike may have been threatening to expand outside of Oregon. Nike declined to comment.
In a statement, Nike spokeswoman Mary Remuzzi thanked legislators for acting “quickly and decisively.”
“This is a very positive step forward, not only for our company but for the state of Oregon,” the statement said.
This new infrastructure and job creation is critical in a state that has low property tax, no sales take and relies heavily on personal income taxes. Why in such a tax strapped state legislators are actually giving up tax collection on one of the largest employers in the state. No one knows.
Nike justifies this by claiming that these new jobs to be made are in high income positions and therefore will help bolster the economy.
Nike has been quiet on its new expansion plans or what it plans to do or what the workers plan on doing.
Nike has roots deep within Oregon when it was created in the 1960’s by a runner and his college track coach. Nowadays this company has blossomed into one of the most influential and popular brands in the world. The company is also a very large donor to the University of Oregon.
One can see just how much pull money and power can bring into the legislative sphere. It looks like Nike has their state politicians calling emergency legislative sessions and pulling favors for them. What’s next?
Categories: Income Tax, State Tax, Tax Law Tags: avoiding taxes, corporate tax, federal income tax, federal tax, nike tax, oregon tax, political corruption, state tax, tax increase