Actually, the BIG tax bomb begins on Jan 1, when the Bush cuts expire. Assuming nothing is done, the lower and middle classes will get WALLOPED with incredible tax increases, and they will have to pay them, as dodging taxes for the lower classes is simply not doable.
Of course the Upper Middle Class, and the Upper Class will also get hit hard, and the Upper Middle Class will SCREAM LIKE HELL, especially in the Northeast and parts of California, where their numbers are very high.
My dream is to see all of these tax increases go through - for if THE PEOPLE of the United States want $4T worth of government services, then they should start paying taxes to that effect.
A cause for concern, certainly.
“My dream is to see all of these tax increases go through. . . .”
I agree. Much as I hate to pay my share of the new taxes, much of the middle and upper middle class needs to feel the pain. They reliably vote Democrat believing the class warfare propaganda. They enjoy both the tax relief the Republicans vote for and the social services the deficit spending covers. They believe Obama and Pelosi are really creating a health care plan that won’t cost them anything. The only way they are going to wake up is to bear the costs of the benefits their politicians deliver. If Romney loses in November and these liberals get punched in the teeth with higher taxes in January, they won’t be able to blame anyone but Obama and their Democrat benefactors.
The collapse is coming. If Romney is elected, Soros will manipulate the markets to make it happen early in his term. Republicans will be blamed for a generation. Better to leave Obama holding the bag when it happens. The tax increases will reduce consumer spending precipitating a severe downturn in the economy and much higher unemployment by late 2013. It is going to take protracted pain for the Dems to be blamed and the majority of people to really seek a conservative alternative.
Agreed. The insidious thing about such "tax cuts" is that they merely hidr/postpone what the tax-law really says. Of course "kick it down the road" is the American way, nowadays, so what do we know?
By allowing the 2003 tax cuts to retire, President Obama will be increasing the bottom rate from 10% to 15% ...
more math here:
Raising the 10% bracket to 15% represents what percentage of increase? Hint: The correct answer is NOT 5%.
Raising the 35% bracket to 39% represents what percentage of increase? Hint: The correct answer is NOT 4%.
Extra credit question: People in which tax bracket will see the largest percentage of increase in their taxes?
Extra extra credit question: People in which tax bracket will see the smallest percentage of increase in their taxes?
To those moving from the 35% to the 39% tax bracket...thats roughly an 11% increase in taxes.
To those moving from the 10% bracket to 15%, their taxes will be increased by a whopping 50%.
So the low-income people get their taxes raised even more when seen as a percentage. And the rich folks lose a higher magnitude of money, but the percentage compared to what they already make is lower.