Dumbass Republicans Preemptively Surrender On Tax Increases

One of the best arguments republicans had was the looming tax increases if the Bush tax rates were not renewed. Obama has steadfastly insisted that the rates would not be extended for those making over $250k, the evil rich who serve as the main target of his divisive demagoguery.

Many conservatives howled when the debt ceiling compromise extended the Bush rates until the end of the year, correctly predicting they would become a hand grenade for the president to use in the election. The compromise also contained cuts in both defense and domestic programs. Democrats astutely insisted on relatively large defense cuts, knowing republicans would never swallow them. Not when the few lobbyists who will write large checks to republicans all come from the defesne industry.

Now the obvious strategy for the republicans was to maintain a unified front that either all the Bush tax rates were extended or none of them were on the obvious ground that they were initially enacted as a package and they must stand or fall as a package. This could have been a powerful strategy, as it used obama's promise of vetoing any extension of the high income tax rates as leverage against him. If those rates go, everyone can welcome a big tax increase.

But no, that was too simple for the republicans. They always seem to be looking for a way to undermine themselves and backstab their supporters. Now the Washington Post has run an article with multiple republicans in powerful positions basically saying they will just give up on taxes if Obama is reelected, and certainly will if it means they will have to accept cuts in the sacred defense budget.

This could be the final straw that splits the party if they actually stage such a cravenly retreat. The newer Tea Party-backed congressmen will certainly resist. Perhaps it will be a good thing. Many of us are getting sick and tired of supporting republican idiocy through clenched teeth because the democrat alternative is so unthinkable. The old republican party of RINOs will quickly shrivel up and die, as it has no real support outside the defense and energy industries.

http://www.washingtonpost.com/busin...948828-0330-11e2-9b24-ff730c7f6312_story.html

 

“If the president wins reelection, taxes are going up” for the nation’s wealthiest households, and “there’s not a lot we can do about that.”

I could not imagine being a republican and making a statement like that.


how about this, if obama wins, taxes are going up, people's take home is going down and the economy will crater.

 

I only see two Republican Congressmen making a statement that conciliation is in order if Obama wins. There are others in the article saying no.

This just looks like a liberal hit piece to try and make Republicans look weak. Democrats certainly are not beyond news manipulation and other dishonest tricks to try and win an election.

 

Under Romney we won't sacrifice the same. The wealthy will pay much less in taxes, leaving cuts in services, higher taxes and the national debt squarely on the shoulders of the middle class.

 

There should be cuts in services, we're broke.

The national debt is ALREADY squarely on the shoulders of the middle class.

 

Only in loony liberal land is an extension of existing tax rates a "cut."

And of course, any cut in marginal rates is also considered a gift to the "rich", since they are the only ones paying taxes to begin with.

 

Sunday will mark the start of the 100-day countdown to “Taxmageddon” – the
date the largest tax hikes in the history of America will take effect. They
will hit families and small businesses in three great waves on January 1,
2013:

First Wave: Expiration of 2001 and 2003 Tax Relief

In 2001 and 2003, the GOP Congress enacted several tax cuts for small
business owners, families, and investors (later re-upped by President Obama
and Democrat Congress in 2010). The following tax hikes will occur on
January 1, 2013:

Personal income tax rates will rise on January 1, 2013. The top income tax
rate will rise from 35 to 39.6 percent (this is also the rate at which the
majority of small business profits are taxed). The lowest rate will rise
from 10 to 15 percent. All the rates in between will also rise. Itemized
deductions and personal exemptions will again phase out, which has the same
mathematical effect as higher marginal tax rates. The full list of marginal
rate hikes is below:

-The 10% bracket rises to a new and expanded 15%

-The 25% bracket rises to 28%

-The 28% bracket rises to 31%

-The 33% bracket rises to 36%

-The 35% bracket rises to 39.6%

Higher taxes on marriage and family coming on January 1, 2013. The
“marriage penalty” (narrower tax brackets for married couples) will return
from the first dollar of taxable income. The child tax credit will be cut
in half from $1000 to $500 per child. The standard deduction will no longer
be doubled for married couples relative to the single level.

Middle Class Death Tax returns on January 1, 2013. The death tax is
currently 35% with an exemption of $5 million ($10 million for married
couples). For those dying on or after January 1 2013, there is a 55 percent
top death tax rate on estates over $1 million. A person leaving behind two
homes and a retirement account could easily pass along a death tax bill to
their loved ones.

Higher tax rates on savers and investors on January 1, 2013. The capital
gains tax will rise from 15 percent this year to 23.8 percent in 2013. The
top dividends tax will rise from 15 percent this year to 43.4 percent in
2013. This is because of scheduled rate hikes plus Obamacare’s investment
surtax.

Second Wave: Obamacare Tax Hikes

There are twenty new or higher taxes in Obamacare. Some have already gone
into effect (the tanning tax, the medicine cabinet tax, the HSA withdrawal
tax, W-2 health insurance reporting, and the “economic substance
doctrine”). Several more will go into effect on January 1, 2013. They
include:

The Obamacare Medical Device Tax begins to be assessed on January 1, 2013.
Medical device manufacturers employ 409,000 people in 12,000 plants across
the country. This law imposes a new 2.3% excise tax on gross sales – even
if the company does not earn a profit in a given year. Exempts items
retailing for <$100.

The Obamacare Medicare Payroll Tax Hike takes effect on January 1, 2013.
The Medicare payroll tax is currently 2.9 percent on all wages and
self-employment profits. Starting in 2013, wages and profits exceeding
$200,000 ($250,000 in the case of married couples) will face a 3.8 percent
rate.

The Obamacare “Special Needs Kids Tax” comes online on January 1, 2013.
Imposes a cap on FSAs of $2500 (now unlimited). Indexed to inflation after
2013. There is one group of FSA owners for whom this new cap will be
particularly cruel and onerous: parents of special needs children. There
are thousands of families with special needs children in the United States,
and many of them use FSAs to pay for special needs education. Tuition rates
at one leading school that teaches special needs children in Washington,
D.C. (National Child Research Center) can easily exceed $14,000 per year.
Under tax rules, FSA dollars can be used to pay for this type of special
needs education. This Obamacare cap harms these families.

The Obamacare “Haircut” for Medical Itemized Deductions goes into force on
January 1, 2013. Currently, those facing high medical expenses are allowed
a deduction for medical expenses to the extent that those expenses exceed
7.5 percent of adjusted gross income (AGI). The new provision imposes a
threshold of 10 percent of AGI. Waived for 65+ taxpayers in 2013-2016 only.

Third Wave: The Alternative Minimum Tax and Employer Tax Hikes

When Americans prepare to file their tax returns in January of 2013,
they’ll be in for a nasty surprise—the AMT won’t be held harmless, and many
tax relief provisions will have expired. These tax increases will be in
force for BOTH 2012 and 2013. The major items include:

The AMT will ensnare over 31 million families, up from 4 million last year.
According to the left-leaning Tax Policy Center, Congress’ failure to index
the AMT will lead to an explosion of AMT taxpaying families—rising from 4
million last year to 31 million. These families will have to calculate
their tax burdens twice, and pay taxes at the higher level. The AMT was
created in 1969 to ensnare a handful of taxpayers.

Full business expensing will disappear. In 2011, businesses can expense
half of their purchases of equipment. Starting on 2013 tax returns, all of
it will have to be “depreciated” (slowly deducted over many years).

Taxes will be raised on all types of businesses. There are literally scores
of tax hikes on business that will take place. The biggest is the loss of
the “research and experimentation tax credit,” but there are many, many
others. Combining high marginal tax rates with the loss of this tax relief
will cost jobs.

Tax Benefits for Education and Teaching Reduced. The deduction for tuition
and fees will not be available. Tax credits for education will be limited.
Teachers will no longer be able to deduct classroom expenses. Coverdell
Education Savings Accounts will be cut. Employer-provided educational
assistance is curtailed. The student loan interest deduction will be
disallowed for hundreds of thousands of families.

Charitable Contributions from IRAs no longer allowed. Under current law, a
retired person with an IRA can contribute up to $100,000 per year directly
to a charity from their IRA. This contribution also counts toward an annual
“required minimum distribution.” This ability will no longer be there.

Posted by Ryan Ellis on Friday, September 21, 2012 10:19 AM EDT

Read more: http://atr.org/days-taxmageddon-a7203#ixzz278C9xKzk

 

I hope romney and ryan march this out... before during and after the debate.

 

Obomney won't let this happen right?

I need a drink.

That moment when everyone realizes the bill is finally due.

 

I know this is a little complicated, but the republicans should have been hammering this for months. The message is simple, a vote for obama is a vote to repeal ALL the Bush tax rates.

I really don't see how republicans can have any credibility if they go along with a partial repeal. They should be finished as a party if they do that.