Taxmageddon: The Coming Tax Hike for the Poor and Middle-Class...wait. What?

ON Jan. 1 of next year, the federal tax bill for a typical middle-class household — making in the neighborhood of $50,000 — is scheduled to rise by about $1,750. This increase, which would come from the expiration of both the Bush tax cuts and the Obama stimulus, would follow a decade of little to no income growth for many people. As a result, inflation-adjusted, after-tax income for the median household could fall next year to its 1998 level, in spite of the continuing economic recovery.

Coming Soon: ‘Taxmageddon’

The Bush tax cuts didn't just benefit the wealthy or corporations. It benefited almost everyone: the poor, who got a previously nonexistent 10% bracket, the middle-class, who went from 28% to 25%, anyone with a child, which the credit went from $500 to $1000, and a whole host of other people. In other words, just about everyone benefited from the Bush cuts.

Let's also not forget that some Obamacare tax hikes will begin in 2013, totaling almost $23 billion. In fact, Obamacare as a whole will be an over-ten-year tax hike of $502 billion.

Set to expire in 2013 if Congress and Obama don't halt at least some of them, it won't just be "the rich" that get bent over, it'll be all of us.

/TOA

reply to post by The Old American


If they try to raise my taxes...then they'll be getting a baby goat, or veggies from my garden. What they do with it when they get it is not my problem. They've taken all they are going to get out of me money wise.

Des

Guess its time for real change. DONT VOTE OBAMA.
Vote for those who believe in smaller Government,and sound principles.

Originally posted by The Old American

ON Jan. 1 of next year, the federal tax bill for a typical middle-class household — making in the neighborhood of $50,000 — is scheduled to rise by about $1,750. This increase, which would come from the expiration of both the Bush tax cuts and the Obama stimulus, would follow a decade of little to no income growth for many people. As a result, inflation-adjusted, after-tax income for the median household could fall next year to its 1998 level, in spite of the continuing economic recovery.

Coming Soon: ‘Taxmageddon’

The Bush tax cuts didn't just benefit the wealthy or corporations. It benefited almost everyone: the poor, who got a previously nonexistent 10% bracket, the middle-class, who went from 28% to 25%, anyone with a child, which the credit went from $500 to $1000, and a whole host of other people. In other words, just about everyone benefited from the Bush cuts.

Let's also not forget that some Obamacare tax hikes will begin in 2013, totaling almost $23 billion. In fact, Obamacare as a whole will be an over-ten-year tax hike of $502 billion.

Set to expire in 2013 if Congress and Obama don't halt at least some of them, it won't just be "the rich" that get bent over, it'll be all of us.

/TOA

are you aware of the phrase "off-budget" used by republicans in the george w. term? republican credit card charges (cutting taxes), are always sent to the democrats to pay (raising taxes). it's been a pattern for some time now.

Originally posted by Destinyone
reply to post by The Old American

 

If they try to raise my taxes...then they'll be getting a baby goat, or veggies from my garden. What they do with it when they get it is not my problem. They've taken all they are going to get out of me money wise.

Des

edit on 14-4-2012 by Destinyone because: (no reason given)

Haha, I'm in the poor class and I do not benefit in any way shape or form from taxes, nor have I ever, so they can eat my poop asking for more tax money. I don't even think I should have to pay them, I mean I pay money to drive on public roads every day through a corrupt system called TOLLS, which add up and are unconstitutional.

reply to post by The Old American


It's about damn time. Maybe after a few years of actual revenue the republicans can quit moaning about the deficit and the debt.

It seems a little convenient you don't mention the Obama tax cut also set to expire. The Obamacare tax hike is going towards those making over $250,000...hardly middle-class.

In fact, according to your source, a vast majority of the cuts set to expire are on couples making over $70,000. That's somewhere between middle and upper-middle class. Those are even minor increases of something like 2-3%.

The capital gains tax...how many low-income people have capital gains in excess of $250,000/year?
The death tax? I wasn't aware 'middle-class' consisted of $3.5 million+ to give away when you died.

Only the very wealthy should be concerned about this, the poor and middle class have very little to worry about. Unless the republican led house decides to keep the cuts for the wealthy while letting the few for the poor and middle class expire.

reply to post by links234

ON Jan. 1 of next year, the federal tax bill for a typical middle-class household — making in the neighborhood of $50,000 — is scheduled to rise by about $1,750.

The above is middle-class. Actually, closer to lower than middle. Give them your "it's about time" in person, pal, and see how you fare.

/TOA

reply to post by The Old American


Household of one. Yes, that's the individual rate.

I'm one of those middle-class people, I'm also married, so my taxes won't be going up.

Cost of living for a single person with no children is vastly different than a family of four. They'll probably manage the loss of $70 in a bi-weekly paycheck if they're making $60,000.

Like I said earlier, the poor and most of the middle-class have little to fear from these expirations.

You're not getting bent over.

The short term reduced rate special has simply come to an end, that is all.

Americans still pay some of the lowest taxes in the Western World, and have some of the cheapest gas prices.

Quit whining. You don't like it? Take a look at what we pay in Canada or what they're paying in the UK, for both taxes and gasoline.

Let's hope they don't start talking about a value added tax system in the U.S.

We Know they're thinking about it for sure.

a V.A.T. might be only way out in some peoples' thinking.

They will keep quiet until after the elections. But then look out !!

2-year old article:

The U.S. should consider using a European-style value added tax to help bring the deficit down, said White House adviser Paul Volcker in response to a question from CBS MoneyWatch.com at a panel discussion in New York City Tuesday night. "We have to think about really revamping the tax system," said Volcker, who's best known for successfully beating down inflation while serving as Ronald Reagan's Federal Reserve chairman. The VAT, a levy on all the goods and services you consume, is not a "toxic idea," he added.

Until recently, discussion of a U.S. VAT had been limited to the back rooms of think tanks and cocktail hours of high-minded conferences. But nearly every other industrialized nation has one, and the idea is beginning to spread. In addition to Volcker, the head of the Senate Budget Committee, Kent Conrad (D-N.D), has mused that a VAT has "got to be on the table," and Speaker of the House Nancy Pelosi (D-Calif.) has murmured sweet nothings about it. In fact, interest in a VAT is cropping up all along the ideological spectrum (albeit more often along the leftish end).

The case for a VAT is simple: The U.S. government's fiscal gap is widening by the hour. The deficit for 2009 alone was a cool $1.4 trillion, and it's projected to hit $1.6 trillion this year. By the end of the year, the Office of Management and Budget says the gross federal debt will stand at $13.8 trillion. As Bruce Bartlett, a former Reagan economic advisor who supports a VAT, puts it, "The U.S. needs a money machine." A VAT, because it touches every transaction, is just that: The Congressional Research Service estimates that each one percent of a value-added tax would raise $50 billion. That's real money.
VAT: Will the U.S. Adopt a Value-Added Tax? (April 2010)

About 150 countries have a VAT. It comes in different shapes and sizes, ranging from 5 percent in Japan to 25 percent in Sweden. It's easy to see why it's popular: As a broad-based tax that's easy to collect and hard to see, a VAT can rake in a lot of money.

reply to post by The Old American
I'll be the first to admit that in some arenas, I'm not that smart.

But the idea, the concept, that spending less is not even an option anymore frightens the pellets out of me.

Why we are so focused on how much they take versus how much they spend is beyond me.

reply to post by sonnny1


Who would that be? lol

reply to post by links234


Plus in Kalifornia Gov moonbeam has slapped his own tax on the 250K earners.
250K here doesn't go as far as you would imagine

We have the higest sales tax in the nation, the highest road tax, The highest income tax in the nation, we have the most generous welfare system which is why we account for 12% of the population but we have 30% of the total welfare reciepients in the nation the highest illegal alien population.

The reason the state gets away with it? Strict gun control and brutal corrupt cops.

This state stopped being the goldenn one in the 1970s.

I cant wait for the rest of the taxes coming in the near future like breathing taxes, fat taxes, skinny taxes, thinking taxes, talking taxes, ugly taxes, etc. When will all this BS stop. End the government end the taxes

Funny thing is you say it will begin soon, but look around you gas, groceries, everything else you spend money on is on the rise. This is a form of inflationary tax. The fed or government does not have to tell people they are going to raise anything they just manipulate the value of the dollar and wallah.

Apropos of absolutely nothing, other than the "Wow" factor. Saw the on CNN the other day. If you have two people living in your house, and combined income is >$72,000, then you are in the wealthiest 1% of human beings on this planet.

Just thought it might be interesting to throw that in here.

the federal government in the u.s. collects on average $2,200,000,000,000.00 every year.

that doesn't include what the states collect.

this money goes into the hands of the 100 senators and 400+ congressmen.

if you can't make it work with that amount of cash, go home.

Been some schoolin goin on in here I see..Some very good replies.

I don't really make enough to say one way or the other, but I would be willing to pay a little more if it will get us out of debt and on a proper course.

That being said, Congress needs to toe the line as well. By which, I mean that they cut spending to an even greater level than the amount they plan to tax everyone.

Congress toe the line!

CONGRESS TOE THE LINE!!

reply to post by The Old American


Well someone has got to pay for those wars that George started, they don't come for free ya know.

And the Medicare Prescription thingy, and the deregulation of the financial markets (Credit Default Swap anyone?), and in general the misguided policies of the Republican party.

Lets just just pay for their MISTAKES, deny them the right to fook it up again, and call it a decade.

I make $40k a year, and I endorse this message.

/sarc

Well, they would just blow it on something frivolous like food and shelter. Gov needs the money more.

/end sarc

We get what we vote for...we must want this.