" I am favor of cutting taxes under any circumstances and for
any excuse, for any reason, whenever it's possible.
" ---Quotable and notable Milton
At any rate Bush's long legacy is about to end with a twist that will hurt all of the Americans soon. You don't have to be one of the 1% to bet hit on a different tax rate . The 99 % will be hit just as hard as the 1 % . Blame Congress , and Mr. Obama ( the next President ) .Specifically, the existing 10% bracket will go away, and the lowest
"new" bracket will be 15%. The existing 25% bracket will be replaced by
the new 28% bracket; the existing 28% bracket will be replaced by the
new 31% bracket; the existing 33% bracket will be replaced by the 36%
bracket; and the existing 35% bracket will be replaced by the 39.6%
bracket. Right now, the maximum federal rate on long-term capital gains and
dividends is 15%. Starting next year, the maximum rate on long-term
gains is scheduled to increase to 20% (or 18% on gains from assets
acquired after Dec. 31, 2000, and held for over five years). The maximum
rate on dividends will skyrocket to 39.6%.
People in the lowest two rate brackets of 10% and 15% currently pay
0% on long-term gains and dividends. Starting next year, they will pay
10% on long-term gains (or 8% on gains from assets acquired after Dec.
31, 2000, and held for over five years) and 15% and 28%, respectively,
on dividends. If your Married you will get penalized next year .
Before the Bush tax cuts, a phaseout rule could eliminate up to 80%
of a higher-income individual's itemized deductions for mortgage
interest, state and local taxes and charitable donations. The rule was
gradually eased and finally eliminated in 2010.
Next year, the phaseout will be back in full force unless Congress
takes action and the president approves. So, if you itemize and have
2013 adjusted gross income above about $175,000 (or about $87,500 if you
use married-filing-separate status), get ready for this phaseout rule
to take a bite out of your wallet.
The Mentality fostered on is that the Higher earners should pay for more , and that has been the philosophical turning point for the Obama agenda to raise taxes to pay for "things" . Altogether we should note that our nation is in debt ( 15 trillion ) as we know , and what better way is to let the Bush tax cuts slip and burden all Americans. Congress is hog tied , and shackled on how to address the debt . The spending mentality contributed to a burden of heavier taxation .
NOTES & COMMENTS:
The original cuts were approved in large part because the U.S. Treasury
was running a surplus back then. However, today's budget deficit,
combined with the politicized atmosphere of a midterm election year,
mean that any changes before the existing tax laws sunset are not sure
things.With that said, realistically, taxes
have to go up on everybody, both rich and poor, both workers and
investors. We have to pay for what we already spent. Only after we have
paid for what we already spent can we start to debate whether we want to be a country of social safety nets or not. If we choose not to be a country of social safety nets, then we can lower taxes on everybody. However, if we want to be a country of social safety nets, then everybody has to pay into it, not just the upper middle class and the rich.