Page 1 of 5 12345 LastLast
Results 1 to 13 of 55
  1. #1
    Join Date
    Aug 2001
    Location
    forney texas
    Posts
    17,890

    GOP wants to add 3 trillion to the debt

    The Bush tax cuts: What nobody is talking about
    .
    Jeanne Sahadi, senior writer, On Monday November 15, 2010, 9:58 am EST
    There will be a lot of noisy static between now and Thursday about possible compromises over the extension of the Bush tax cuts, which are set to expire Dec. 31.

    Thursday is the day when President Obama and the Democratic and Republican leadership on Capitol Hill meet to formally kick off negotiations on the issue.

    The starting points in the negotiations are well known: President Obama wants to make the tax cuts permanent on income up to $250,000 and let the cuts on income higher than $250,000 expire. The Republicans want to the tax cuts to be made permanent for everyone. (The Washington Punch List: Track the money issues)

    Many tax policy watchers are nevertheless convinced that ultimately lawmakers will opt for a temporary one- or two-year extension for everyone.

    If they're right -- or if lawmakers adopt any other type of extension for high-income households -- they'll have another big fight on their hands: how to pay for the cost.

    "This is one of a handful of things that can tie-up or slow-down an across-the-board extension," said Sean West, a U.S. policy analyst for the Eurasia Group.

    Under rules passed earlier this year, lawmakers are obligated to pay for any extension of the Bush tax cuts that apply to higher income households.

    Those budget rules can be waived, however, if the extension is deemed "emergency spending." That's because lawmakers don't have to "pay" for emergency spending -- it just gets added to the deficit.

    And that's exactly what Clint Stretch, managing principal of tax policy at Deloitte Tax, expects will happen.

    "The argument made for extending the cuts for everyone is that the economy is in a whole heap of hurt, and how can we afford to raise anyone's taxes now?" Stretch said.

    Since there's no actual tax-cut extension legislation written yet, there's no formal estimate of how much it would cost to extend the upper-income tax cuts for a year or two.

    But the cost is likely to range between $70 billion and $140 billion. A permanent extension would cost $700 billion over 10 years, according to Treasury Department estimates.

    "I don't see any way to pay for it," said Anne Mathias, director of research at MF Global's Washington Research Group.

    That's because there is no appetite on the part of Republicans to find that kind of revenue elsewhere in the budget -- or any desire by most Democrats to cut government spending during a tepid economic recovery.

    Even if the endgame is to add the cost of high-income tax cut extensions to the deficit, that doesn't mean there won't be a lot of negotiating in the run-up to that decision.

    "There will be lots of noise about the need to pay for any upper-end extension from Democrats and perhaps the White House; Republicans will insist tax breaks don't need to be paid for," West said.

    But expect a very loud silence from both sides of the aisle on a much pricier decision: No one is pushing to pay for the far greater cost of extending the cuts for the middle class, which are automatically exempt from pay-go rules.

    If lawmakers opt to make the middle class tax cuts permanent that will add an estimated $3 trillion to the country's debt over 10 years. A two-year extension could cost roughly $383 billion.

  2. #2
    redistribute it from the new world order fund machine.

  3. #3
    Join Date
    Jan 2006
    Location
    Near Atlanta, GA.
    Posts
    14,501
    Convenient look at only one side of the equation. The figures above don't factor in the stimulus, or at least the loss of stimulus if the tax cuts expire. Allowing the tax cuts to expire in an economy this bad will probably cause an even greater loss of revenue.

    This isn't a zero-sum game.

  4. #4
    Join Date
    Jul 2010
    Location
    NJ
    Posts
    394
    They should make it for everybody - or nobody - PERIOD!

    They can pay for it by raising taxes to 85% of income for all pro athletes, Actors and other Hollywood types plus College Presidents.

  5. #5
    Join Date
    Jul 2006
    Posts
    6,486
    Quote Originally Posted by kirbinster View Post
    They should make it for everybody - or nobody - PERIOD!

    They can pay for it by raising taxes to 85% of income for all pro athletes, Actors and other Hollywood types plus College Presidents.
    Make it 95% for the Hollywood left.
    You sure are cocky for a starving pilgrim.

  6. #6
    Join Date
    Jul 2010
    Location
    NJ
    Posts
    394
    Quote Originally Posted by zachhvac View Post
    Make it 95% for the Hollywood left.
    OK, that works too

  7. #7
    Join Date
    Aug 2001
    Location
    forney texas
    Posts
    17,890
    I have a thread going for ideas on how to turn this situation around. I do'nt believe either of you participated.

    Ya'll just like to complain. Wussies.

  8. #8
    Join Date
    Jul 2010
    Location
    Andalucia
    Posts
    3,223
    Quote Originally Posted by kirbinster View Post
    They should make it for everybody - or nobody - PERIOD!

    They can pay for it by raising taxes to 85% of income for all pro athletes, Actors and other Hollywood types plus College Presidents.
    The Dem proposals are for everybody. Everybody gets a tax break on the first $250,000.

  9. #9
    Join Date
    Jul 2010
    Location
    NJ
    Posts
    394
    Quote Originally Posted by pageyjim View Post
    The Dem proposals are for everybody. Everybody gets a tax break on the first $250,000.
    That is not really true, as there are give backs of deductions and exemptions that are phased in based on income and you get hit at the top marginal rate on those. But that is not the point, all those that have small businesses that are S-Corp or LLC pay their business taxes at their top marginal rate and all those businesses - which create most of the jobs, will get hit by Pelosi/ Reid, Obama.

    Its time to stop the class warefare. Everyone should pay the same rate. Those that make more pay more, they should not also pay it at a higher rate. We need to cut spending. Stop all the stupid giveaway programs that are full of fraud.

    I had some insulation work done last week and the guy doing the work told me the company just got a big government job to insulate low income homes. The homeowner pays nothing, the government (you and I pay for all of it.) The company charges the government for 100 bags of insulation and actually installs 12 bags - great government waste.

  10. #10
    Join Date
    Mar 2003
    Posts
    7,321
    thinking that the cuts may expire, i took advantage and bought three new trucks for the business two weeks ago. is that stimulous? ford grossed 94k in the transaction, someone gotta be paying taxes on that..lets se, my salesman, the dealer, ford. who is receiving? well, the state, the fed. the way i see it, its a transfer of taxes whereby i pay less but others pay more. it also helps manufacturing, suppliers, delivery people etc.

    i dunno what the right answer is, but this thing needs to get going, and i think continued handouts are not helping the economy ramp up.

  11. #11
    Join Date
    Jul 2010
    Location
    Andalucia
    Posts
    3,223
    Quote Originally Posted by kirbinster View Post
    That is not really true, as there are give backs of deductions and exemptions that are phased in based on income and you get hit at the top marginal rate on those. But that is not the point, all those that have small businesses that are S-Corp or LLC pay their business taxes at their top marginal rate and all those businesses - which create most of the jobs, will get hit by Pelosi/ Reid, Obama.

    Its time to stop the class warefare. Everyone should pay the same rate. Those that make more pay more, they should not also pay it at a higher rate. We need to cut spending. Stop all the stupid giveaway programs that are full of fraud.

    I had some insulation work done last week and the guy doing the work told me the company just got a big government job to insulate low income homes. The homeowner pays nothing, the government (you and I pay for all of it.) The company charges the government for 100 bags of insulation and actually installs 12 bags - great government waste.
    We currently have the largest concentration of wealth since 1928 and you are proposing a regressive rate income tax. Thomas Jefferson suggested a progressive income tax, he was right then and he is still right.

  12. #12
    Join Date
    Jul 2009
    Location
    Plant City, Florida
    Posts
    2,198
    Quote Originally Posted by kirbinster View Post
    They should make it for everybody - or nobody - PERIOD!

    They can pay for it by raising taxes to 85% of income for all pro athletes, Actors and other Hollywood types plus College Presidents.
    no they cant

  13. #13
    Join Date
    Jul 2010
    Location
    NJ
    Posts
    394
    Quote Originally Posted by bwalley View Post
    no they cant
    Why not?

    If you are going to pit one group against another why not attack the athletes and the actors.

Page 1 of 5 12345 LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
Comfortech Show Promo Image

Related Forums

Plumbing Talks | Contractor Magazine
Forums | Electrical Construction & Maintenance (EC&M) Magazine
Comfortech365 Virtual Event