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Reply #12: If you read carefully you will see that I didn't say that the tax cuts ... [View All]

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spin Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-13-10 05:17 PM
Response to Reply #10
12. If you read carefully you will see that I didn't say that the tax cuts ...
need to be renewed.

I said "It probably doesn't matter much whether the tax cuts are extended or not, the important thing is that Congress needs to get off its big fat ass and make a decision."

Businesses hate uncertainty. It's hard to plan for the future, and it's even harder when you have no idea what the future tax rates will be.

Obviously if the tax cuts are not renewed for the middle and lower classes (which is a possibility) many people will find themselves with less weekly income.

What happens on Jan. 1 if Congress does nothing?

Everyone's federal income and investment tax rates will go back up to where they were before the 2001 tax cuts were passed. In other words, your tax bill next year would increase.

If the tax cuts do expire and tax rates go up, you may notice the difference in your wallet as early as January, when your employer starts to withhold more taxes from your paycheck.

The Tax Policy Center estimates that a married couple with two kids under 13 and a household income of roughly $75,000 could end up paying about $2,600 more in federal income taxes next year than they would if the tax cuts were extended.

But the likelihood of all the tax cuts expiring isn't high, since both Democrats and Republicans agree on one thing: They want to extend the tax cuts at least for folks making less than $200,000 ($250,000 for joint filers).

The increase may or may not make a significant difference but knowing what to expect helps to determine whether to hire and how many.

The current situation is like playing chess with a person who has half of his pieces hidden. You calmly wait until he decides to show you what you face.

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  -8 Reasons Why Obama Shouldnt Extend Tax Cuts for the Wealthy Temporary or Otherwise Time for change  Nov-13-10 12:55 PM   #0 
  - extending the cuts at this time, particular for the rich is suicide  sasha031   Nov-13-10 12:58 PM   #1 
  - As usual, a very well-reasoned opinion.  StandingInLeftField   Nov-13-10 01:02 PM   #2 
  - I we want to reduce unemployment we need to resolve this tax issue quickly...  spin   Nov-13-10 01:04 PM   #3 
  - What makes you think that US business hiring depends on...  OlympicBrian   Nov-13-10 04:51 PM   #10 
     - If you read carefully you will see that I didn't say that the tax cuts ...  spin   Nov-13-10 05:17 PM   #12 
  - One reason: Regressive  RUMMYisFROSTED   Nov-13-10 01:05 PM   #4 
  - Maybe the Democrats in the House or Senate will step up?  kentuck   Nov-13-10 01:09 PM   #5 
  - Pelosi already has -- That's a very good sign  Time for change   Nov-13-10 11:20 PM   #26 
  - K & R. Extending the tax cut for the wealthiest while simultaneously cutting social security  glitch   Nov-13-10 01:51 PM   #6 
  - I don't see a thing here about the President's call for a *permanent* middle-class tax cut extension  bigtree   Nov-13-10 02:05 PM   #7 
  - A "compromise" to extend the Bush cuts "temporarily"  Time for change   Nov-13-10 04:34 PM   #9 
     - I don't think that 'promise' to end the tax cut for the wealthy is as politically consequential  bigtree   Nov-13-10 06:12 PM   #13 
        - Why I blame him  Time for change   Nov-13-10 06:45 PM   #14 
        - I don't think he has as much influence on what Congress 'puts on the table'  bigtree   Nov-13-10 07:23 PM   #19 
           - I'm not advocating a reconciliation proces -- though that's a possibility too  Time for change   Nov-13-10 07:39 PM   #20 
        - Dumb promise. His tax cuts were a waste and so are most of these as well.  TheKentuckian   Nov-13-10 08:14 PM   #22 
           - yep  bigtree   Nov-13-10 08:21 PM   #23 
  - Here are two reasons he *will* do it:  Marr   Nov-13-10 02:14 PM   #8 
  - You're probably right, but  Time for change   Nov-13-10 10:01 PM   #25 
  - you seem to be assuming re-election is a crucial part of his strategy.  tomp   Nov-14-10 07:59 AM   #30 
  - Love reason 6. And have seen reason 8 in action.  Overseas   Nov-13-10 05:16 PM   #11 
  - k&r  Hannah Bell   Nov-13-10 06:47 PM   #15 
  - That's a post!  TheKentuckian   Nov-13-10 06:50 PM   #16 
  - He is probably going to renew them for a few years so the middle class tax cuts can stay  BzaDem   Nov-13-10 06:53 PM   #17 
  - Great--but you 'buried your lead' in the last 4 paragraphs: (1) Extending income tax breaks is the W...  ProgressiveEconomist   Nov-13-10 07:20 PM   #18 
  - I agree it's terrible policy.  Time for change   Nov-14-10 05:12 AM   #28 
  - K & R. Thank you for pulling so much information together  chill_wind   Nov-13-10 07:52 PM   #21 
  - Recommend.  Poboy   Nov-13-10 08:30 PM   #24 
  - I can easily think of Billions of reasons "Why Obama Shouldnt Extend Tax Cuts for the Wealthy"  Imagevision   Nov-13-10 11:26 PM   #27 
  - you actually think obama is swayed by popular opinion?  tomp   Nov-14-10 07:51 AM   #29 
  - To some extent, yes  Time for change   Nov-14-10 10:02 AM   #31 
     - when the issues are crucial to the interests of the wealthy...  tomp   Nov-14-10 12:56 PM   #34 
  - #9 Kicking the can down the road is a bad idea.  moondust   Nov-14-10 10:16 AM   #32 
  - Absolutely  Time for change   Nov-14-10 11:18 AM   #33 
  - especially #7  Enrique   Nov-14-10 01:01 PM   #35 
  - kicking since it is too late for me to rec  Shallah Kali   Nov-14-10 01:44 PM   #36 
  - Too late to rec, but I'm rec'ing anyway. What this country (and this forum) needs ...  puebloknot   Nov-14-10 03:23 PM   #37 

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