September 04, 2010
Taxes Going Up, January 1, 2010

It's inevitable; your Federal taxes are going up in 2011. It's not just the failure of Congress to extend the Bush tax cuts but also the first wave of Obamacare. Even if Republicans win the House and Senate in November, Democrats will still hold the majority until the new Congress starts in January 3, 2011. The new Congress can pass all the legislation it wants (extend Bush tax cuts, repeal Obamacare) but the President still holds the veto pen. Deadlock or compromise will result. If deadlock, your taxes revert to the higher rates in effect from the Clinton years plus new taxes for Obamacare, if compromise, your taxes will go up a lesser amount but still up. This will pose a conundrum for the "I will never, ever vote to raise your taxes!" candidates.

The best one can hope for is a strong Republican majority in the next Congress to provide negotiating power with Obama and hold the line until November 2011 when the American people can add "change" to "hope".

Thanks to DV for alerting me to the below site which summaries the what's coming January 1, 2011. Best to be seated before reading.

http://www.atr.org/six-months-untilbr-largest-tax-hikes-a5171#%23ixzz0sY8waPq1

Posted by warrenpeterson at September 04, 2010 11:21 AM | Email This
Comments
1. The best thing that can happen to this country is deadlock. We do better when left to our own devices and our government can't do a thing.

Posted by: Jeff B. on September 4, 2010 12:44 PM
2. I think that it's a riot to hear how conservatives are "fiscally responsible" after they pushed through a series of irresponsible tax cuts.

But hey... "deficits don't matter", as long as Republican is in the White House.

Posted by: demo kid on September 4, 2010 12:44 PM
3. @1: We do better when left to our own devices and our government can't do a thing.

Maybe if you want to live three hundred years ago. Tea Partiers may have a fetish for the 1700s, but I'd prefer to live in the present, thank you very much.

Posted by: demo kid on September 4, 2010 12:48 PM
4. Unless the Democrat Party wants to go the way of the Whigs they'll fight to keep the Bush tax cuts.

The game is up for the Dems, and most of them know it.

Posted by: Bill Cruchon on September 4, 2010 01:35 PM
5. Somehow it will all be Bush's fault.

Posted by: Vince on September 4, 2010 02:34 PM
6. Slavery Party Failed Abortion,

What was the deficit for FY2007, the last GOP/Bush budget?

What was the deficit for FY2008, the first Pelosi/Reid/Obama budget? How about FY2009, or FY2010, both signed by President Obama?

Answer those and we can then talk honestly about fiscal responsibility.

Posted by: Shanghai Dan on September 4, 2010 03:22 PM
7. @6: Hmmmm... do your FY2007-2009 budget numbers include the "emergency" spending bills that were used to finance the wars started by the previous Administration? Do you consider the downturn that started in 2007-2008 when comparing to earlier years?

Don't confuse "fiscal responsibility" with "cooking the books", or Republican fiscal policy with "honesty".

Posted by: demo kid on September 4, 2010 04:17 PM
8. It's truly enjoyable to watch Dems constantly resort to the same talking points they've used for months. It's all they have left and most voters aren't buying their garbage now. Americans don't like whiners. As recent as this morning Obama again blamed the economy on Republicans. What can you expect from a guy who looked beyond silly last week riding a girl's bike in a park with a helmet on?

It seems likely that John Boehner will become Speaker of the House. Can you imagine? How enjoyable is it going to be to have him as Speaker? Boehner smokes, enjoys his liquor, is tanned and, unlike Obama, has a good golf swing. Boehner is already driving the big city elite left crazy. I read an article last week comparing Boehner to the characters on Mad Men. Boehner embodies everything the left despises about America. So did John Wayne. Soon enough the left will realize that they live in a country that doesn't like them at all.

Posted by: Bill Cruchon on September 4, 2010 05:08 PM
9. @8: Americans don't like whiners.

Which is why I can't understand how anyone likes conservatives these days.

And it seems that conservatives resort to the same talking points they have had for months as well. Too bad they're lying through their teeth, eh?

Posted by: demo kid on September 4, 2010 05:40 PM
10. @ #9, "Which is why I can't understand how anyone likes conservatives these days."

Of course you can't. You're a leftist. You think it's fine that parents have to buy school supplies when the government currently spends in excess of $10,000 per pupil a year.

Americans have had it.


Posted by: Bill Cruchon on September 4, 2010 06:12 PM
11. I think today's GOP is a whole new beast. As recent as the 2008 election cycle it seemed like Ron Paul was a one man wolf pack fighting for fiscal responsibility and winding down the wars. Now the party is dominated by voters and candidates who are sympathetic to most of the Paul position.

Demo may not differentiate the different factions in the GOP for a limp rhetorical advantage but that doesn't mean they don't exist. So Demo, there are three factions: the totalitarian Christians, the libertarians, and the warmongering neocons. The result of the 2008 election is that the neocons have been marginalized and the libertarians and totalitarian Christians have formed a tenuous majority faction called the Tea Party. What is really funny is that the GOP portion ofthe Tea Party wouldn't have been enough to overwhelm the democrats this November. But, because of the blatant "fuck you, you ignorant trailer park troll" attitude of the democrat party most "independent" and some democrats to align with the tea party as well.

Demo, why should we continue with the Obama+Pelosi+Reid plan for America? Where do you see it going if by some miracle the GOP doesn't take control of either part off confess? What are the features of living in Obamaland in, say, 2016?

Posted by: blindman on September 4, 2010 06:33 PM
12. blindman I think you've hit on it, "But, because of the blatant "fuck you, you ignorant trailer park troll" attitude of the democrat party most "independent" and some democrats to align with the tea party as well."

What leftists don't get is that they are insulting decent Americans. Branding them as racists, or Islamophobics. We are neither and we resent being pigeonholed by leftists who look down their noses at anyone living outside of liberal enclaves such as Seattle. Ask Sarah Palin.

Posted by: Bill Cruchon on September 4, 2010 06:52 PM
13. http://www.youtube.com/watch?v=SU0JTrJx-KY

Posted by: Seabecker on September 4, 2010 07:26 PM
14. Blindman, don't say such terrible things about your betters.

The Dems, the party of the common man, know far better than you what is good for you. Your job is to dutifully pull the lever for the urban leftist whenever it is required.

Posted by: Attila on September 4, 2010 07:45 PM
15. Dumbo @ 7 Your argument doesn't hold water, just a large quantity of hot air.
http://gatewaypundit.firstthings.com/wp-content/uploads/2010/08/dem-deficit.gif

Posted by: mike336 on September 4, 2010 08:56 PM
16. Boy, you're really optimistic. Even though much of what you say is true, a Republican controlled house can cut off funding for Obamicare and stop it in its tracks.

Posted by: ranjor on September 4, 2010 09:06 PM
17. Boy, you're really optimistic. Even though much of what you say is true, a Republican controlled house can cut off funding for Obamicare and stop it in its tracks.

Posted by: ranjor on September 4, 2010 09:06 PM
18. But hey... "deficits don't matter", as long as Republican is in the White House. - DK

Well, considering the federal deficit for the month of July, 2010 exceeds all of FY 2007, it's clear you don't have the slightest clue as to what you're talking about.

Posted by: jimg on September 4, 2010 09:19 PM
19. Anybody who fell for the "you won't get a tax increase if you earn less than 250k" must be feeling awfully betrayed by now. Obama & the democrat congress are coming for families, small business, and pretty much anyone else with new taxes, taxes, taxes.

Don't listen to what Obama says, look at what he does!
I wonder what the trolls have to say to the claims Obama made about not raising anybody's taxes who earns less than 250k---claims which were bogus, we now know.
PS---Note that the highest percentage increase in income taxes is coming on the lowest income earners!

Posted by: Michele on September 4, 2010 10:33 PM
20. SPFA,

Include those numbers, if you like. See if you can get to a $1.5 TRILLION deficit for anything from FY2007 or earlier (you know, when the GOP actually wrote the budget).

Go ahead. Try.

Posted by: Shanghai Dan on September 4, 2010 11:02 PM
21. #8: Re the photo of Obama riding his daughter's bike. He was wearing his "Mom Jeans" in the photo as well.

Posted by: Michele on September 5, 2010 12:24 AM
22. If fiscal responsibility is your bag, then we can't do better than returning the Republicans to control in the congress.

No lie: Ethics probe of Joe Wilson's travel wider than disclosed

Since he joined Congress after a December 2001 special election, Wilson's overseas travel has cost taxpayers about $100,000 all told in itemized expenses, including roughly $38,000 in per diem money intended to cover only meals and lodging.

That total puts Wilson at No. 29 among the 435 members of the House - and at No. 39 among 730 members who've served since 1994, according to data published in the Congressional Record, the official proceedings of the House and Senate and analyzed by Congressional Quarterly

Posted by: MikeBoyScout on September 5, 2010 06:57 AM
23. I would just like to note that if they were the "ones" who you had really "been waiting for" .... Team Liberal is in big trouble.

You got exactly the change you hoped for and of which we warned against.

Now we have a significant chance for change to make it all RIGHT.

Posted by: RagnarDanneskjold on September 5, 2010 08:41 AM
24. MikeBS,

What was the deficit in 2007, and what is the deficit now? Simple question, really.

Posted by: Shanghai Dan on September 5, 2010 09:28 AM
25. Since you cannot believe a word Mikeboyscout says, here is the chart for the last decade.

US Federal Deficit As Percent Of GDP
Fiscal Years 2000 to 2010 Year GDP-US
$ billion Federal Deficit -fed
pct GDP
2000 9951.5 -2.37 a
2001 10286.2 -1.25 a
2002 10642.3 1.48 a
2003 11142.1 3.39 a
2004 11867.8 3.48 a
2005 12638.4 2.52 a
2006 13398.9 1.85 a
2007 14077.6 1.14 a
2008 14441.4 3.18 a
2009 14258.2 9.91 a
2010 14623.9 10.64 b
Legend:
a - actual reported
b - budgeted estimate in US fy11 budget

Posted by: Smokie on September 5, 2010 09:39 AM
26. Why are tax cuts irresponsible, but out of control spending by Democrats is the height of responsibility and "being adults"? Am I just taking insane pills this morning?

Posted by: Crusader on September 5, 2010 11:18 AM
27. 2009 14258.2 9.91 a
2010 14623.9 10.64 b

So under Obama the debt has skyrockted while Bush basically managed it to acceptable levels.

Posted by: Crusader on September 5, 2010 11:20 AM
28. Heck I read an article on the Puffington Post that even young people are back in electoral play after 2008 we all thought it was a permanent re-alignment.

Posted by: Crusader on September 5, 2010 11:25 AM
29. Remember, this is the same group that denies there will be a tax increase starting in January. And that the poorest will see a massive 50% increase in their Federal income taxes, while the richest of the rich will see a 16% increase.

In other words, the upcoming tax increase will disproportionately affect the poor. Women and children hit hardest, naturally...

So why do the Democrats feel the need to penalize the poor, and jack their rates up by 50%?

Posted by: Shanghai Dan on September 5, 2010 12:11 PM
30. How long before we hear the claim from Dems that 'Tax Cuts are Racist'?
When you hear that, then you'll officially know that that the jig is up for 'em.

Posted by: Puget Sound on September 5, 2010 12:16 PM
31. How long before we hear Dems scream that 'Tax Cuts Are Racist'?
When you hear that, you will know that the Dems have gone full-Fonzie and officially 'Jumped the Shark.'

Posted by: Puget Sound on September 5, 2010 12:19 PM
32. #29: I wouldn't want to see any bigger increase on the highest income levels regardless, since they only got a piddling 10% cut in rate earlier this decade. But I'm still kind of in awe that Obama would raise anyone's taxes 50%, as he is doing with the lower income levels.

Posted by: Michele on September 5, 2010 01:55 PM
33. Michele,

Especially since the top 25% pay 60% of ALL Federal Revenues from just their income taxes and social security taxes. Not including capital gains, interest, etc. Just income and social security.

ALL other taxpayers (75%), all corporations, all duties and tariffs and fees, all capital gains taxes, all estate taxes - everything else - accounts for just 40% of the revenue to the Federal Government.

"The Rich" are not only paying their "fair share", they're paying for most people. But it's so much easier to demonize them and play the class warfare card because they're a minority - just 1 out of 4.

Rational, reasonable people would consider them already taxed enough, and look at ways to either cut spending down, or work with the other 75% population and all corporations to cover deficits. When 25% of your customers provide 60% of your revenue, usually they're not the ones you want to squeeze.

But then, that assumes the leaders in DC have any rational thoughts or actual background in business...

Posted by: Shanghai Dan on September 5, 2010 02:07 PM
34. @33 - yeah but if the rich make 80% of the money, shouldn't they pay 80% of the tax? It's only fair.

Posted by: Crusader on September 5, 2010 05:59 PM
35. Crusader,

The top 25% earn ~65% of all income, but pay 86% of all income taxes. They pay approximately 75% of all social security taxes. They pay more than their fair share of income-based taxes, and then some.

Posted by: Shanghai Dan on September 5, 2010 07:01 PM
36. Shanghai Dan - also the rich disproportionately benefit from all the telecom & transportation infrastructure built up through taxing the middle class of the past.

Posted by: Crusader on September 5, 2010 08:44 PM
37. #34: Are "the rich" (and how are you defining it?) in fact making 80% of the money? And if they are, where did you hear that?

Posted by: Michele on September 5, 2010 09:17 PM
38. This poses a shitstorm for millionaires, what the fuck will they do? How will they get their slave tea par-tiers to riot for them?

Posted by: Rated Voltage on September 6, 2010 08:17 AM
39. Crusader,

How much should "the rich" pay? You already said they should pay an equitable share of the taxes on all income, and the facts show they pay more.

So how much?

Posted by: Shanghai Dan on September 6, 2010 11:06 AM
40. Worth repeating ... AND PASSING ON

The power of images turned against the Democrats

Posted by: RagnarDanneskjold on September 6, 2010 12:09 PM
41. That's actually a very frightening ad. It plays right into the Democrat's hands. It even mentions TARP which was passed during the last days of the Bush administration.

If we want to blow the big gains in November this ad is exactly the way our side will fall on its own sword.

Posted by: Bill Cruchon on September 6, 2010 06:59 PM
42. The message in that ad is too long and probably scary to independents - get rid of it !

Instead, talk about how Obama is trying to be Reagan in reverse. Instead of trickle down prosperity, Mr. Obama wants to implement trickle up poverty with his big government tax schemes - there are plenty of examples to be shown and the Democrats have been behind them.

Posted by: KDS on September 6, 2010 07:39 PM
43. KDS, I have to wonder if that ad might be a plant by leftists. I don't believe responsible conservatives would craft such an ad.

Leftists are going to throw everything but the kitchen sink at us between now and November. They are already playing the race card, and the anti-Muslim card. They will set every trap they can think of.

Posted by: Bill Cruchon on September 6, 2010 07:53 PM
44. Too much exuberance shown. The radical fringes (the Sharon Angle and Christine O'Donnell supporters) of the Tea Party came up with this ad it seems. Still scary to the Independents - no plan shown. I know that they want to get back to what the Founding Fathers laid down, but it has to be done in a sensible way or this change could blow up in their faces, maybe quicker that this Hope, change facade in 2008 did.

The TEA Party is an amorphous group - those who are mainstream are good, but those on the radical fringes are not and need to be held in check. The one good thing that the TEA party is doing is holding the Republican Party's feet to the fire and maybe even doing a hostile takeover. I support this, because if it weren't for the GOP party, we would not be in the fix we find ourselves in.

Posted by: KDS on September 6, 2010 09:33 PM
45. "Remember, this is the same group that denies there will be a tax increase starting in January. And that the poorest will see a massive 50% increase in their Federal income taxes, while the richest of the rich will see a 16% increase."

Umm..where on earth do you get this nonsense Shanghai Dan? Pull it out of your ass?

The "rich" (top 5% or household income over ~$160k/year) pay less in taxes already than any other western nation. The top 1% of the country currently control over 42% of all the wealth. A bit disproportionate eh?

The Bible says it best "For unto whomsoever much is given, of him shall be much required: and to whom men have committed much, of him they will ask the more." Luke 12:48

This board is rather confusing. Given the statistics, its highly unlikely that many of you even come close to making $200k/year in incoming (top 4%). Thus, you'll have no tax increase. What exactly is the issue?

Any tax increase on people making over $250k/year isn't going to affect things negatively, because those people won't change their spending habits. Perhaps they'll save slightly less, but thats it.

Posted by: Proteus on September 7, 2010 09:52 AM
47. Proteus,

The tax rate pre-Bush-cuts for the lowest payers was 15%; it dropped to 10% with his cuts. Those go away. Ergo, 10% becomes 15% and that is a 50% increase.

The top 25% of income earners in the US already pay the lion's share (60%) of all Federal revenues in just income and social security taxes. Is that not enough? How much should they pay?

Note about the Bible - it's talking about individuals doing with their own money, not Government forcing redistribution from individuals. Would think someone who could quote the Bible would understand that, but perhaps not...

And those above $250K/year (not the only people facing an increased tax rate - EVERY tax payer will pay more) already showed they will adjust their spending habits based upon taxation. Remember when the Democrats and President Clinton pushed through the "luxury tax" on yachts? Nearly killed our domestic yacht-making industry, including Tolleycraft and Bayliner, based right here in WA State.

Posted by: Shanghai Dan on September 8, 2010 05:54 PM
48. So--here's the REAL test--let's track how the congress-peoples family and relatives' side businesses fare under the tax laws; will THEY pay more? will THEY run their family side businesses like they run our country? i doubt it; you see, when it come to THEIR side jobs, they run it like ruthless capitalists; but MY dime? nope; record deficits; outlandish handouts; I'll believe them when they loan their OWN $$ to deadbeat homeowners and lazy "entitlement" programs

Posted by: jimmie howya-doin on September 9, 2010 10:32 PM
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