published Tuesday, April 3rd, 2012

Are you happy about taxes?

This headline question seems a little silly to most of us, doesn’t it? Who is ever “happy” about any taxes — unless they are going down, which is very rare.

Do you know what President Barack Obama plans to do about our taxes — and very soon?

We are asking now because this year — 2012 — our tax rates are headed for a change.

Six tax brackets have been in effect for Americans since 2003. They range from 10 percent to 35 percent.

The Tax Relief Act of 2010 temporarily extended those tax rates through the end of 2012.

But what’s next?

The tax rates for 2013 are set to change — automatically — to the pre-2003 rates unless new legislation is passed by Congress and signed by the president!

Do you know what President Obama and a majority of the members of Congress have in mind?

Unless new legislation is approved, the current 10 percent tax rate is scheduled to become 15 percent. The 25 percent tax rate will become 28 percent. The 28 percent tax rate will become 31 percent. The 33 percent tax rate will become 36 percent. And the 35 percent tax rate will become 39.6 percent — automatically!

Have you seen or heard any indication that Congress and the president will “do something” in time to avoid imposing higher taxes upon us?

Obama said in a radio address last Saturday: “We don’t envy success in this country. We aspire to it. But we also believe that anyone who does well for themselves should do their fair share in return, so that more people have the opportunity to get ahead — not just a few.”

Did that sound to you like a suggestion that he is planning to do anything to avoid the scheduled “automatic” tax increases? Or did it suggest he plans to let higher taxes automatically take effect?

Few of us taxpayers may be aware of the immediate prospect of higher taxes. Most people certainly don’t want higher taxes. But in no case should we let the possibility of higher taxes “slip up on us” and take effect without warning.

So shouldn’t we, the taxpayers, immediately and urgently insist that our representatives and senators in Congress speak up clearly — now — and not surprise us with “automatic” higher taxes?

Aren’t specific explanations and decisions due — now?

12
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nucanuck said...

Rather than a tax increase, we are scheduled to return to the pre-existing tax rates 12 years back when the US actually tried to balance the budget. Are those rates high? Compared to what? Americans love to complain about taxes at the same time we advantage ourselves from some form of government sugar. Whether it's mortgage exemptions on taxes, government contracts, or food stamps...almost everyone gets some sort of benefit.

The truth is that our taxes are not high and our taxes are not enough to cover what we spend. When we cut spending, we cut jobs and that's OK unless it's your job.

Government is hurtling toward a fiscal crisis that will force spending cuts AND higher taxes. Get ready because it is coming.

April 3, 2012 at 1:08 a.m.
joneses said...

nucanuck

12 years ago after 8 years of Clinton's we had about 5 trillion dollars of debt. After President Bush's 8 years another 5 trillion dollars was added. Now this fool we have as a president is on track to add 6 trillion dollars in 4 years and probably another 6 trillion dollars if we are so unfortunate for this idiot to be reelected for a total unsustainable debt of 22 trillion dollars. A vote for Obama is a vote to ruin the country through massive unsustainable debt.

April 3, 2012 at 5:39 a.m.
dfclapp said...

The Bush presidency with its tax cuts both raised the deficit and dramatically reduced job creation while making the rich richer and the poor poorer. The payroll tax was also a bad idea because it is unfunded. Organizations focused on deficit reduction like the Concord Coalition agree that the best solution will have to incude increased revenue from taxes. The American people deserve better than what drastic cuts alone would do to our country. We are not so poor that taxes cannot go a little higher to get beyond our present crisis.

That said, the end of those tax cuts would go down much better if the Democrats in the Senate and Obama could come up with a deficit reduction plan comparable to the outline laid out by Ryan and the House Republicans. Just as with the Affordable Care Act, the Ryan plan addresses an unpleasant reality with a difficult solution.

I don't want to hear how bad it or ACA is, I want to compare it to the better alternative that is written and fully vetted in the public arena, and that can and will be signed into law.

About the Bush-Obama Cuts:

April 3, 2012 at 6:44 a.m.
conservative said...

Obamination : “We don’t envy success in this country. We aspire to it. But we also believe that anyone who does well for themselves should do their fair share in return, so that more people have the opportunity to get ahead — not just a few.”

Siren words of destruction! This is just veiled language for the old tiresome call for wealth redistribution.

Marxism, Socialism, Lieberalism and the current Progressive are the common terms to describe their plan.

April 3, 2012 at 9:27 a.m.
nucanuck said...

joneses,

We are witnessing the end of an economic era. Government induced deficit spending to smooth out economic cycles has been a common practice for decades. Unfortunately, each application has required larger and larger infusions to create the desired effect. The government is now taking on massive debt to try to allow the private sector to de-leverage. What Obama has done would have been similar under McCain or Romney. Austerity is only preached by whichever party is out of power.

The sad part is "this time it is different". The US and the developed world have finally run out of viable financial debt products and there is no way to put Humpty Dumpty back together again. The America we have known is ending. We have a catastrophic fail dead ahead that will take at least a decade to recover from. We will need a whole new tool box to fix the problems that we have created.

Our generation blew it.

April 3, 2012 at 10:05 a.m.
conservative said...

People who don't pay income taxes either don't understand or don't want to understand the burden of those who do.

I tend to believe that the 47% of American households who don't pay federal income taxes could care less, or worse, realize that the feebies they get must be sustained by the taxation of others.

Both of these groups are poor citizens, to say the least.

April 3, 2012 at 1:12 p.m.
Plato said...

This editorial illustrates the hypocrisy of the Republican party and their supporters like the FP editors. They scream for deficit reduction but anything that might result in an increase in revenue to reduce the deficit is condemned. You can't have it both ways. Every reputable organization that has looked at deficit spending including the non-partisan Simpson Bowles commission and the non partisan Concord Coalition has concluded that we cannot reduce the deficits in a meaningful way to lower the national debt with spending cuts, revenue increases and growth. Austerity alone won't do it.

What the president will actually propose is yet to be seen but it's obvious to me that more tax cuts for the wealthy paid for on the backs of the middle class and the elderly which is what the Congressional Republicans lead by Congressman Ryan have proposed, isn't a formula for deficit reduction, it's a formula for reducing our country to a banana Republican with a super wealthy 1% at the top and a 99% peasant class working harder and harder to make them wealthier and wealthier.

April 3, 2012 at 1:49 p.m.
conservative said...

Plato...... Maybe you didn't know that for every $1.00 our government receives it spends as of 2009, $1.90. Stated another way, we go in 90 cents further in debt for every dollar sent to Washington. Congress has shown no desire to reduce the deficit or our debt. They spend it all and then some to sustain their Socialist programs.

We have a SPENDING problem. Raising taxes will do nothing to reduce our debt.

You have been made a sheep on this issue. If you will refuse to graze in their pasture ( the mess media, Obamination, the Demoncrat party, Lieberal Republicans and Lieberals in general ) you will not be fleeced in your thinking.

"In relative terms, from 2003-2007 the government spent roughly $1.20 for each $1.00 it collected in taxes. This increased to $1.40 in FY2008 and $1.90 in FY2009."

April 3, 2012 at 2:48 p.m.
Plato said...

"You have been made a sheep on this issue. If you will refuse to graze in their pasture ( the mess media, Obamination, the Demoncrat party, Lieberal Republicans and Lieberals in general ) you will not be fleeced in your thinking."

So lending credence to the Bipartisan Simpson Bowles commission that included some of the best financial, economic and tax experts in the country, over a 9 month period is being a "sheep", but drinking the kool-aid served up by The Weekly Standard and the Fox News politic hacks is "smart" - gotcha.

BTW what's the Demoncrat Party, Lieberals & Lieberals ?

April 3, 2012 at 7:18 p.m.
chet123 said...

UNLESS YOU HAVE A TRUCK THAT GET 100 MILES A GAL...OR DONT DRIVE...I'M WILLING TO BET THAT YOU PAID MUCH MORE IN GAS THAN YOU DO I FED TAXES..

DO THE MATH

April 3, 2012 at 7:52 p.m.
conservative said...

Plato.....You cite non-partisan organizations in support of tax increases. So what? Many have gone to Washington under the Republican banner believing in big government in addition to the Socialist Demoncrats. Is having some big government Republicans on board suppose to make Socialism OK?

April 3, 2012 at 8:03 p.m.
holdout said...

Maybe Chet but not by much. Don't forget that about one third of the price of gas is federal tax. Local and state is a little more than a third so less than half of what you pay for gas is actually for the gas. The rest is for taxes.

April 4, 2012 at 8:24 a.m.
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