Skip to comments.Study: Expiration of Bush tax cuts will hit poorest hardest
Posted on 10/07/2010 12:45:03 PM PDT by MichaelNewton
Low-income workers stand to lose the most if lawmakers fail to reach a consensus on the Bush-era tax cuts, according to a new report from the Tax Foundation.
The report states that on Jan. 1 the doubling of the child tax credit, increased standard deductions and income credits and the creation of the 10 percent tax bracket all of which primarily aimed at non-wealthy taxpayers will vanish if gridlock persists in Washington.
While wealthier taxpayers pay more in taxes and stand to lose more money if the tax cuts expire, the impact on low-income taxpayers will be far greater because they live on slimmer margins.
(Excerpt) Read more at thehill.com ...
Oops. Think Obama is even aware of this? I know my taxes will roughly double on Jan 1 and I’m already underwater.
C’mon everybody knows that the Bush tax cuts only helped the RICH! /s
Wait until the poor voters who pulled the lever for Obie Won find out their child tax credit is cut in half.
The 50% who pay no federal income tax will suffer the most. < /sarc >
No one who looks like that should ever be President.
How much did this study cost us? I am sick and tired of study after study being conducted. The tax cuts were for everyone so I imagine that everyone will feel it a bit.
Will Republicans hold together in the Senate to prevent Democrats from passing an 0bamafication of the Bush tax cuts in the lame duck session?
Will Democrats in the House who oppose raising taxes in a depression stick with Republicans to pass an across the board extension, even as none of them will be returning next session?
"Now, your insurance will be INCOME on your W2's!
One of the surprises we'll find come next year, is what follows - - a little "surprise" that 99% of us had no idea was included in the "new and improved" healthcare legislation . . . the dupes, er, dopes, who backed this administration will be astonished!
Starting in 2011, (next year folks), your W-2 tax form sent by your employer will be increased to show the value of whatever health insurance you are given by the company. It does not matter if that's a private concern or governmental body of some sort.
If you're retired? So what... your gross will go up by the amount of insurance you get.
You will be required to pay taxes on a large sum of money that you have never seen. Take your tax form you just finished and see what $15,000 or $20,000 additional gross does to your tax debt. That's what you'll pay next year.
For many, it also puts you into a new higher bracket so it's even worse."
Do tell! My taxes went down with the implementation of the Bush tax cuts, and I sure as hell ain’t rich.
“The 50% who pay no federal income tax will suffer the most. < /sarc >”
Actually, they do because they lose child tax and earning income credits. As the article states: “a married couple with two dependents earning $40,000 about $2,643, with after tax-income dropping to $38,870, from $41,513 if the tax cuts are extended and taxpayers continue to take advantage of refundable credits.” Under the current system, the family receives $1513 from the government. Now they’ll pay $1130.
You mean... they lied?
Need to change the AMT so that regardless of deductions / refundable / non-refundable credits .... everyone has to send a net total dollars to the government equal to the lowest tax bracket.
I think 10 years after taxes were cut, they can’t be called “tax cuts” anymore. Any hikes are NEW hikes to the existing taxes.
Quick facts about the Bush tax cuts for the “rich”
Will it be included in your gross or will it be merely reported as a separate line item for now? I think that is associated with the extra tax on "Cadillac" insurance plans in the future, but is not being taxed yet.
Actually I don’t have this on my plate yet. I don’t have any kind of health insurance and just pay as I go. Guess that unless the Pubs can repeal and replace I’ve got to plan for it.
You know, what can happen here is that people will be forced into bankfuptcy or to sell off their assets. Who will be able to buy? Who will want to?
How much aggregated stupidity has to be displayed before average Joe American gets the idea things might need to change back????
Wait a second. What about the women? I though the women were always the hardest hit. And the minorities! What’s this special preference for the poor? It’s discrimination!
I thought the poor didn’t benefit at all from these tax cuts? I seem to recall hearing basically every democrat politician and liberal commentator, newspaper and blogger go on and on about how they only benefitted the rich.
So which is it? Were they also tax cuts for the poor? Or do tax cuts for the rich help the poor so much that doing away with them hurts the poor most of all?
It’s really hard to keep up with liberal “logic” sometimes.
That was my understanding, except that all employer-provided insurance will eventually be taxable income. They'll just be 'practicing' in 2011, to see how much they can roll us.
And here we thought Dubya stomped little puppies and hated the poor.
Unfortunately, in spite of unemployment and a sucky economy the general public has not been effected enough for it to sink in. It's gonna hit like a hurricane and everyone will be blindsided. By then it will be too late.
Of course in reality, they are tax increases because today I pay X and in January I will pay X+Y.
The only reason they still discuss them as “tax cuts” in the first place is because of John Mccain leading the “centrist” charge to have tax cuts with a sunset date.
The damage statists do (and McCain’s a statist regardless of his party affiliation) is astounding.
Ha ha ha ha ...wait... I have three children...Ha ha ha ha ... wait, I did not vote for him...ha ha ha ha ha ...wait... I'm screwed
Plus the $200 ‘’fee’’ for each bank or credit union you do business with and the 1% ‘’fee’’ when you deposit your chk. and a 1% ‘’FEE’ when you withdraw any of it to pay bills etc. And that’s only part of the list.
The poorest don’t pay taxes!
I forgot about that.
But still, wait until the Obie Lovers try to explain it away.
I’m Shocked ! Shocked I say!
If they think increased taxes dont get passed on to the consumer they have to be delusional. The poor spend more of their income on goods then do the rich by necessity. Therefore they have less buying power if taxes increase for those who own the businesses they purchase from.
>> The poorest dont pay taxes!<<
Oh yes they do. They just dont know it. When I owned my businesses if the taxes or other expenses increased it was added to the cost of the product.
What bugs me is that no matter how many times it gets repeated, many people still think that if they can just get tax rates increased on corporations, that will mean lower taxes for individuals. You can’t get them to see that no institutions pay any taxes whatsoever. All taxes are paid by individuals, sooner or later in the process.
Clearly this is one of those things that requires too many thoughts in a row.
Remember: “we ha[d] to pass it so we could see what was in it.”
They do pay sales taxes and if they’re employed, FICA and Medicare, right from the first dollar they earn. And, if they buy things, they pay the taxes embedded in the prices of whatever they buy.
So, your point was...?
Bet the rent it will hit the fan if that happens.
Do you think he even gives a rats ass? All he and the Democrats care about is how to play it politically. Poor people are just props they use in their little Kabuki theater. When the play is done, they throw the props away.
>>The poor don’t pay income taxes!<<
Actually they do. They paid MY income taxes. Thats the message that doesnt get to those who THINK they dont pay income taxes.
> “The 50% who pay no federal income tax will suffer the most.”
As the provisions of the Bush tax cuts that allowed them to avoid taxation tumble into the ashcan of a lethargic congress, and the once brave souls that stuck their necks out to create jobs withdraw said necks before the axe dropped.
I actually am pretty sure the whole impetus of the entire Democratic Party is power alone. They want to run stuff and will do whatever it takes to be able to do that. So, my question was sort of rhetorical. The point was how much of a blindside would it be if conservative candidates really started pressing this in their campaign stops and commercials? Do the Dems even realize what kind of effect this would have on the political discourse right now?
“The poorest dont pay taxes!”
They’ll be losing their tax credits.
Where does this information come from?
When you think about it you pay taxes throughout your day.
Buy gas and a pack of gum on the way to work..taxed
Go to McDonalds for lunch...taxed
Stop for some groceries....taxed
Buy your kid some school supplies...taxed
Pay some bills....taxed
Get your paycheck...taxed
We are taxed to death!!!
You miss the point. It won’t be 50% who pay zero, it will be something like 40%
Hey! Just like the end of the world! Those poor poor people.
Cmon everybody knows that the Bush tax cuts only helped the RICH! /s
Yeah, remember when the left was screaming that the poor folks who didn’t pay taxes didn’t get a tax cut? I wonder if they will scream now that the poor folks who don’t pay taxes don’t get a tax increase. Or will those who claimed the rich got all the benefits scream because the taxes on poor folks are going up by a higher percentage than the taxes on rich folks.
Double-duh ping. Thanks MichaelNewton.