Skip to comments.Obama threatens veto of bill combining tax cuts for middle class, top earners
Posted on 07/10/2012 4:30:24 AM PDT by tobyhill
President Obama is threatening to veto any legislation that extends all the tax cuts set to expire at the end of the year, as he presses Congress to extend those cuts only for families whose yearly income is less than $250,000 -- and raises taxes on everyone earning more.
The veto threat sets the early tone for what is expected to be a contentious battle between Democrats and Republicans through the rest of the year as they seek to avoid the so-called "taxmageddon" -- the sudden increase in taxes on all Americans that will occur if Congress doesn't vote to extend some or all of the Bush-era tax rates.
The president, amid charges of class warfare, urged Congress to pass a bill that deals with the middle-class tax rates only. Lawmakers then can move on to a separate debate over extending the rates for top earners, Obama said, though he made clear he is adamantly opposed to doing so.
"I will fight to end them," Obama said Monday, speaking in the East Room of the White House. He added that he doesn't want that debate to "threaten" those making less than $250,000.
(Excerpt) Read more at foxnews.com ...
Send the entire bill extending the tax cuts for all, he will sign it. He cannot afford not to extend the tax cuts, you have to call him out on this. If he does veto it, then he really did’nt care in the first place.
If you have delusions of grandeur about the so-called American Dream, and even think about making more than $250,000, you will suffer the wrath of the Central Planners and have confiscatory tax rates as a punishment for having any kind of thought of upward mobility.
If you are thinking about expanding your small business by hiring other middle-classers, if it means that you will ultimately make more money, you must not hire! Please! Your ill-conceived actions will ruin our plans for the destruction of America!
Your Masters have spoken! Comply! Shut up!
Brought to you by the Alinsky Wing of the Progressive-Marxist-Soetoro Party.
Send the entire bill extending the tax cuts for all, he will sign it.
Stop the extending crap make them permanent once and for all!
Historical Effective Federal Tax Rates: 1979 to 2006
This is the latest from the CBO that I could find that detailed the following information:
Effective Tax Rate
Share of Tax Liabilities
Average Pre-Tax and Post-Tax income
Share of Pre-Tax and Post-Tax income
All of these are displayed in a table that categorizes by quintile (i.e. 0-20%, 20-40%, 40%-60%, 60-80%, and 80%-100%). It also provides this information for the top 10%, top 5%, and top 1%.
Note the minimum adjusted income for the top 5%: it’s $134,400. That means that a single person with an AGI of $134,000 or higher is in the top 5%. If you are married, with 2 kids, an AGI of $268,000 or higher is in the top 5%. If you are just married, with no kids, the threshold is $190,813.
Why is this important? The Democrats have proposed that the “Bush tax cuts” only be continued in 2011 for single people earning more than $200,000/year and married couples earning more than $250,000/year. That falls between the lower limits for the top 5% and the top 1% of taxpayers.
For the moment, let’s assume that’s “fair”. (I don’t think so.) But, look at the share of individual income taxes paid by these top tiers. In 2006:
The top 5% paid 60.9% of individual income taxes
The top 1% paid 39.1% of individual income taxes
-—pick the percentage in the middle: that means about 50% of the income taxes were paid by the segment of taxpayers that would be targeted by this tax increase.
And therein lies the problem: Do you really think the Democrats are going to give up 50% of this tax increase that will go into effect in 2011 if they do nothing?
They’ll extend the tax increase to cover the top 10% — who paid 72.8% of individual income taxes. Or maybe they won’t stop until its extended to the top 20% of taxpayers — who paid 86.3% of individual income taxes.
Where do you think you fall into this? The lower limit for the top 10% is $98,100. The lower limit for the top 20% is $71,200.
Multiply those numbers by 1.414 for a married couple without dependents, and by 2.000 for a family of 4.
Now think carefully: if you are in the top 20%, do you feel “rich”? What do you want to bet the Democrats will redefine “rich” to include you?
and the Obama tobacco tax. I don't smoke but a lot of poor and middle class people who are probably addicted to smoking are paying sickening amounts of money to the government because of these taxes. It's not really for their own good because Obama couldn't give a rodent's behind about them.
Obama’s “Populist” Tax Platform Puts Retirees at Risk
If Congress fails to act, the capital gains rate will rise to 23.8% next year from 15% today and dividend taxes will rise to as high as 43.4% from 15%, Brown says, citing analysis by the Americans for Tax Reform.
“If you’re going to take a portfolio of blue chips that’s got a decent 3%-4% yield and you’re now going to triple tax on that income, it’s double financial repression on tens of millions of boomers that are trying to cobble together a retirement,” he says.
The GOP should be trotting out small Mom & Pop business owners who show a business income of over $250,000 on their personal tax form and who would be hit by Obama’s raising taxes on the “rich”. Let them explain how this tax hike would affect their businesses especially in employment.
He’s running out of carrots.
He wants to hold off a year before he completely cuts the cord on everyone.
He’s gonna have a LOT of pizzed off people if he vetos this.
Heathcare was one thing but this is a little more personal right now.
He won’t have to. His monkey-boy harry reid will make sure it never gets through the Senate.
That's the last data that the CBO has published. The IRS has published data up to 2009, but for federal individual income tax only:
I've written an extensive posting about this data here:
Harry Reid will only table the House bill, like he has done to about three dozen others, and not allow debate or vote.
Likely, the Senate will generate a bill then and the House will amend it or vote it down, etc., etc., etc.,...
Reid’s Senate is like a merry-go-round, as it continues to just go around. Seldom has anything meaningful legislation been passed through both chambers, because Reid is afraid some of the good things from the House might actually be passed.
In Obama’s own words “WE WON”. Now suck it up Reid, Obama, and support the will of the people.
If this was so precious to Obama’s economic recovery plan, why didn’t he address this with Speaker Pelosi in his first two years? ... Oh wait, he did! He signed legislation locking in the rates another two years taking us to now.