Back door taxes to hit middle class

[Tracy]

What's even more hilarious about this story is that Reuters has removed the story it originally posted (drudge report has reported on this),I had to get the story from the canadian website instead.So here's the story that Obama doesn't want you to read!



http://ca.news.yahoo.com/s/reuters/100201/us/usreport_us_budget_bac...

[The Originalist]

Too late. The story has been scrubbed off this site also.

[Molly Matthews]

Damn dictator. We need to stay vigilant and up to speed on everything-he's working hard to scrub media reports everywhere! This is only something a dictator would do!

[Tracy]

Well its a good thing I saved it!:)

Mon Feb 1, 4:09 PM


By Terri Cullen

ADVERTISEMENT

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.

[Janet L Besanceney]

Good girl Tracy, thanks!

[stephanie henry]

http://www.marklevinshow.com/home.asp

[stephanie henry]

February 1, 2010




On Monday's Mark Levin Show: President Obama's budget is the most irresponsible budget in a free society that has ever been proposed. There's not enough money for the trillions of dollars in deficit that we will be facing as more socialized programs are passed. They don't care if we have jobs or not, or that our children are going to have to pay for this. Instead of money going to the private sector and private enterprises, it's all going to government. Mark explains how when there's no wealth production, it leads to less jobs, which ultimately leads to more poverty. Finally, make sure to check out Mark's 10 ways of destroying American society.

THIS IS FROM:

AP
Obama's $3.8 trillion budget heading to Congress

Wall Street Journal
Budget Would Raise Tax Rates on Wealthy, Limit Deductions

Say Anything Blog
The Inconvenient Truth About Obama’s Deficits: They’re a Lot Bigger Than He Says They Are (January 14, 2010)

TheHill.com
Clyburn: 'We've got to spend our way out of this recession'

Bloomberg
Roubini Sees ‘Dismal’ Growth as Summers Rues ‘Human Recession’

Forbes
High-Paid Government Jobs To Apply For Now

National Review
The President’s Tax Hike on Drilling

AP
Exxon Mobil posts lowest annual profit since '02

Tax Prof Blog
Obama's Budget Contains $1.9 Trillion in Tax Increases

American Thinker
Pelosi's monumental abuse of military aircraft privileges

Politico
Dem. senators spent weekend with bank, energy, tobacco lobbyists

Rasmussen Reports
Florida GOP Senate: Rubio 49%, Crist 37%

Richmond Times Dispatch
Senate passes bill saying Virginians don’t have to buy health insurance

[Laura]

I HATE HIM!

[The Originalist]

Apparently Reuters pulled the story after receiving a call from the White House. lol Apparently the author Terri Cullen didn't understand that articles on Obama's policies require White House approval before they can be published. Reuters promises a White House approved version of the article later this week. Terri is new at Reuters so it is understandable that she was not aware of the rules. I wonder if she will be fired or if she will get off with just a warning.


Financial Journo Terri Cullen Joins Reuters

Backdoor taxes to hit middle class
By Terri Cullen Mon Feb 1, 4:09 pm ET
NEW YORK (Reuters.com)