Obama budget draws fire on the Hill
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#1 Feb 2, 2010
BHO seems to have accomplished his goal of uniting democrats and republicans. He has managed to piss them both off with latest his latest spending plan. Democrats are upset that he does not want to spend more, though the bank account is empty, while the supposedly fiscally conservative republicans are aghast at the size of the spending, forgetting that they spent irresponsibly for eight years to play a huge role in getting us to this point. Yet both sides are telling us how they want to do what is right for Americans. What a sick, hypocritical joke!
#2 Feb 2, 2010
Backdoor taxes to hit middle class
By Terri Cullen - Monday, February 1, 2010, 4:09 pm ET
NEW YORK ( Reuters.com )-- The Obama administration's plan to cut more than $1 trillion from the deficit over the next decade relies heavily on so-called backdoor tax increases that will result in a bigger tax bill for middle-class families.
In the 2010 budget tabled by President Barack Obama on Monday, the White House wants to let billions of dollars in tax breaks expire by the end of the year -- effectively a tax hike by stealth.
While the administration is focusing its proposal on eliminating tax breaks for individuals who earn $250,000 a year or more, middle-class families will face a slew of these backdoor increases.
The targeted tax provisions were enacted under the Bush administration's Economic Growth and Tax Relief Reconciliation Act of 2001. Among other things, the law lowered individual tax rates, slashed taxes on capital gains and dividends, and steadily scaled back the estate tax to zero in 2010.
If the provisions are allowed to expire on December 31, the top-tier personal income tax rate will rise to 39.6 percent from 35 percent. But lower-income families will pay more as well: the 25 percent tax bracket will revert back to 28 percent; the 28 percent bracket will increase to 31 percent; and the 33 percent bracket will increase to 36 percent. The special 10 percent bracket is eliminated.
Investors will pay more on their earnings next year as well, with the tax on dividends jumping to 39.6 percent from 15 percent and the capital-gains tax increasing to 20 percent from 15 percent. The estate tax is eliminated this year, but it will return in 2011 -- though there has been talk about reinstating the death tax sooner.
Millions of middle-class households already may be facing higher taxes in 2010 because Congress has failed to extend tax breaks that expired on January 1, most notably a "patch" that limited the impact of the alternative minimum tax. The AMT, initially designed to prevent the very rich from avoiding income taxes, was never indexed for inflation. Now the tax is affecting millions of middle-income households, but lawmakers have been reluctant to repeal it because it has become a key source of revenue.
Without annual legislation to renew the patch this year, the AMT could affect an estimated 25 million taxpayers with incomes as low as $33,750 (or $45,000 for joint filers). Even if the patch is extended to last year's levels, the tax will hit American families that can hardly be considered wealthy -- the AMT exemption for 2009 was $46,700 for singles and $70,950 for married couples filing jointly.
Middle - class families also will find fewer tax breaks available to them in 2010 if other popular tax provisions are allowed to expire. Among them:
* Taxpayers who itemize will lose the option to deduct state sales-tax payments instead of state and local income taxes;
* The $250 teacher tax credit for classroom supplies;
* The tax deduction for up to $4,000 of college tuition and expenses;
* Individuals who don't itemize will no longer be able to increase their standard deduction by up to $1,000 for property taxes paid;
* The first $2,400 of unemployment benefits are taxable, in 2009 that amount was tax-free.
#4 Feb 2, 2010
And why is the bank empty? That would be GWB.
#5 Feb 2, 2010
More liberal talking point rhetoric. Yes I know that GWB had a disastrous presidency & it is mentioned here regularly. But to believe that our financial condition can all be traced back to him and his administration is laughable liberal drivel. Government does not happen in a vacuum, and our financial issues can be traced back decades to numerous irresponsible policies and legislation which can be credited to democrats and republicans. Bill Clinton signing off on the republican drafted repeal of the Glass-Steagall Act in 1999 is a perfect example of the teamwork done by the two legs of our government crime family. A democrat controlled Congress issuing budget busting spending bills during GWB's last two years in office is another example. Keep believing that the dems are all wearing white hats, and you will not even see them stealing from you. Same message for the republican acolytes.
#6 Feb 3, 2010
It would seem that the Messiah is developing some problems. I would like to see the accusations against Republicans who object to policies come to a stop. The Democrats have been, and continue to be the President's biggest problem. They held enough votes in both houses to pass anything they liked for the past year. Without one Republican vote. So, the people stopping the Democrats from accomplishing their goals and programs are the Democrats.
#7 Feb 3, 2010
congressional dim-o-crats had better speak up about this budget BS.
Not all Democratic voters are blinded obama voters.........
#8 Feb 3, 2010
Sorry Spike, the party's over... standing in the room, beating your drum won't bring bring the good times back.
Obama, Pelosi and Reid own the economy now, it's theirs...
... turn the lights off when you leave.
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