Yes, that’s correct. President Barack Obama wants Congress to pass the George W. Bush tax cuts before they sunset on Dec. 31, 2012. There is one exception, however. The president wants to raise taxes on those persons making more than $250,000. If Congress and the president fail to come to an agreement and the tax structure for all Americans returns to the taxes of the Clinton era, “The tax cliff is a growth killer,” according to the Wall Street Journal.
“The United States faces an economic collapse thanks to massive tax increases on Jan. 1, and continued deficit spending for years on end,” the Journal states.
Expiration of the Bush tax cuts, and the additional tax of the Obamacare will send the nation into a tail-spin.
The top tax rate would jump from 35 percent to 39.6 percent, plus and additional 0.9 percent for Medicare and a return of the 2 percent payroll tax that has been temporarily on hold. That would raise the tax rate to 42.5 percent for the top wage earners.
“Great!” Those who have bought into the president’s class warfare plan would finally get even with the rich.
Hold on a minute. In addition to the increase in taxes for top earners, there will be an increase in the rate paid on dividends: from 15 percent to 43.4 percent, according to the Journal. That applies to working and retirees.
“In all, federal tax increases total almost $500 billion per year on a static-revenue basis,” the Journal noted.
What’s the big deal?
“The blunt reality is that we cannot have a prosperous economy when government is overspending, raising tax rates, printing too much money, overregulating and restricting the free flow of goods and services across national boundaries,” the Journal opined.
Okay, so we tax the rich. We tax companies. We tax everything that moves. However, we don’t tax 50 percent of the citizens of this country now. Who’s left to tax? The middle class — those persons hit hardest by this recent deep recession.
In the end, if we continue to tax and spend, one thing is certain — there will be fewer people able to pay taxes and eventually companies will take the hint and move out of the U.S. Then we lose more jobs. We lose tax revenues. When there are none left to pay the taxes needed to keep a growing government going, there is a financial collapse.
Americans have been avoiding harsh realities far too long. We are only months away from realizing our worst nightmare if our government fails, again, to control spending and reduce the tax burden on all Americans.
Keith Hansen
Comments (31)
Add commentOnce again, you are giving us
Once again, you are giving us skewed information, Keith. The President's proposal will not increase taxes on people making less than $250,000. We will not be paying 43.4% tax on dividend income. However, dividends will be taxed as ordinary income. Your annual income would need to be well over $250,000 per year to incur the top income tax rate of 39.6%. Also keep in mind that even the very wealthy will have no increase in tax on their first $250,000 of income.
Yes, we need to control government spending, but we can't reduce the deficit by spending decreases alone. Increasing taxes on the rich is essential to begin eating away at the deficit.
Tax Burden on All Americans?
Really Keith? You think that the tax burden on the top 1-2% of Americans is a burden to them? And you call yourself a journalist?
Do a little, just a little, research to learn about the truth about where we stand today relative to the past several decades on that burden. Here, let me get you started:
http://economix.blogs.nytimes.com/2011/05/31/are-taxes-in-the-u-s-high-o...
And if you conservatives like to criticize the message by attacking the messenger I suggest you look up Bruce Barlett and his credentials.
Everyone pays taxes!
One more thing,Keith: You state "However, we don’t tax 50 percent of the citizens of this country now. "
Not true! Everyone is taxed when they buy gas for their cars, pay their utilities, pay their phone bills, pay their property taxes, (if they're lucky enough to afford property).
If they have a job, they pay social security tax too. And if we'd get the minimum wage rates high enough they'd even be able to pay income tax.
I read it in the WSJ,
Ruppert Murdoch's bible for plutocrats, so it must be so.
Consider the possibility, Keefie, that if wages had kept pace with productivity increases, more people would be paying income taxes. The wealth generated by productivity increases has gone to the upper 1% via dividends, capital gains, tax evasion and corporate looting. Nice work if you can get it.
All my freinds here @ the marina ( The 1%) had a meeting ....
If our income taxes ( remember were the job providers-boat cleaners,dock boys, golf pros,other marine services) go back to what they were a few years ago ( + 4%) , were going to have to only burn 3-400 gallons of fuel each weekend, instead of 500 gallons. If we send all that money to DC , all they will do is fix Interstate highway bridges that fall into the river , and waste it on " entitlement programs" like Medicare & Social Security " and NOT fix the budget anyway. Therefore after being inspired by the Mormon Vulture Capitialist who wants to lead us ,were all sending our funds offshore to avoid the whole silly tax deal. If we could all only pay 13% or less ,were all getting new bigger boats again next summer, therefore more jobs @ the fuel dock here.
redux
redux
Captain
Where are those boats made, BTW?
My canoe was Made in the USA!
The people who were fixing
The people who were fixing those interstate highway bridges were bringing in paychecks which, in turn, gave them money to come and spend on boats and fuel of their own.
Or are only the 1% (your friends, as you say) allowed to have expendable income?
Tax more ,spend less ,we have a taxing problem,debt reduction ?
Most all the 80 footers on up here @ the Lake Superior Marina ,the interiors are put together off shore , think Pacific Rim nations , then we ship those fuel sipping big block gas power plants ( diesels stink) to another offshore location arranged by our boat broker in Bermuda with offices in the Caymans ,for sea trials and testing. Then we create more jobs by hiring non english speaking captains & crews to deliver the big boy toys to us here on the big lake. Maybe you folks out there dont understand how many nautical miles it is round trip from Duluth/Superior to visit the casino buffet in Bayfield WI each weekend. Since our flotilla can only average 35 mph, burning only 8 or 10 gallons a minute.
Any attempt to put tax rates back were they were ,may force us to cut back on our horse help , creating more job loss... its a vicious circle ....
Geez,
sorry I asked. How depressing.
If Obama is so for the people
either cut the taxes for all of America, or none in America. Maybe if he stopped trying so hard to divide America, some of us might have a better view of him. But they always say, divide and conquer!
Is Captain Ron saying he hires illegals?
Kind of sounds like it. Somebody call immigracion!
pdnet
He isn't trying to divide America, he's actually trying to help all American's, not just the wealthy. Most of the wealthy wouldn't be wealthy if it wasn't for America.
Shadrack,
if a person lives off a Government paycheck they pay ZERO $ in taxes, because they used taxpayer money to pay them.
Example for the simple on here:
If I rob you and get 50 bucks and use it to buy gas for my getaway car, I didn't pay gas taxes, YOU DID.
you can go now
Pd,
he's desperate. he Needs to cause class warfare or he is unelectable. He and Michelle hate the USA and will destroy it to get another 4 years or will destroy it if they do get another 4 years. The communist commenters on here must share his hatred of the USA, is all I can say.
Keith is trolling.
i.e. a troll.
It was worth saying twice,
but that's probably overkill.
I agree a bit, eyolf.
The problem is that the pie has shrunk too much and lots of people don't realize that the 1% doesn't have enough money or assets to finance the Obama Dream. I for one don't want to be a modern slave to the liberal utopia.
FnB
Do you really think Obama and his wife hate America??? And how exactly will 2 humans destroy a country of 300 million???
I didn't say they were alone, dithers.
They and you are puppets, but you are the bottom puppet so you can leave now.
Honestly D-B Fubby
Do you really think Obama and his wife hate America??? If you do, then you are nothing more than ignorant scum. But everyone on this board already knew that about you...slap, slap ,slap...again
Not scum id,
just prone to delusional paranoid conspiracy theories. Unfortunately, there are a number of whack jobs in the rabid right media which reinforce that... but they make big money doing it.
Because there are no paranoid, delusional theories on the left..
...am I right, Chey? And the leftist talking heads that comprise the MSM are donating their time...
Naming Double Standard
Bush tax cut. Why don't we hear about the names of those who increase our taxes? We should have a permanent name on those who increase our taxes! Obama tax increases.
Muehlbau, by all means please share with us
media commentators on the 'left' who engage in delusional paranoid conspiracy theories and what those theories are.
How about Keith Olbermann on any given show?
Oh, I know he's not on the air any more, but I'll never forget when he said that the woman who accused Julian Assange of rape worked for the CIA and Firedoglake picked up the story. That's pure whackjob and he was definitely one of yours.
There was also the whacky claims that Trig was really Bristol Palin's child that actually got some coverage in the MSM. Point is that the left is just as willing, if not more so. to believe ludicrous things when it suits their purposes.
Andrea Mitchell leftie "Wing nut"
Che, How about say Andrea Mitchell?
http://www.youtube.com/watch?v=mM3uRf2hCgo
http://www.youtube.com/watch?v=5X_-QDmzxPA
Ha!
Hardly conspiracy theories that involve destroying the nation, muehlbau.
Nice pictures JimmyJing. Did you recently learn to color?
Itter, you ask if there are those who actually believe
that 'bama and wife hate America. Well, yes they do or they wouldn't be so preoccupied with the non-white classes. You've written on this blog before that those who voted against 'bama were all racists, but the biggest racist alive is 'bama himself. Why do you think he is willing to sell our country to illegals, gays, black farmers, and indians? I mean except for their votes.
pdnet
I think they are pre-occupied with all of America, not just white America. Since America is run by powerful whites, it's not possible for Obama to be racist. Racism keeps the current racial heirarchy, wealthy white people, in control. Blacks can be prejudice, but they can't be racist.