Expiring tax breaks will raise Americans’ tax bills further if fiscal cliff talks fail

[Teh One Who Knocks]

By S.A. MILLER, NY Post Correspondent


WASHINGTON — Americans will be pummeled by a barrage of tax hikes — not just higher income-tax rates — if the White House and Congress let the country dive off the fiscal cliff next week.

The debate has focused on the President George W. Bush-era tax rates that are set to expire New Year’s Day, imposing higher income taxes on nearly everybody.

But there is also a smorgasbord of tax-policy changes, ranging from higher payroll deductions to lost tax credits set to take effect. It adds up to $536 billion more that Uncle Sam would pick out of America’s pockets next year.

The fate of these tax hikes depends on the outcome of the fiscal-cliff talks.

The payroll-tax cut would expire, increasing the tax paid by workers from the current 4.2 percent to 6.2 percent.

The change would cost the average worker $1,000 next year.

About 28 million more Americans would get snagged by the alternative minimum tax, costing them about $64 billion in higher income taxes for 2013.

The alternative minimum tax, or AMT, was created in the 1960s to stop the rich from using accounting tricks and tax havens to get out of paying their fair share.

But the law wasn’t indexed to inflation. Over the years, it hit more and more middle-class taxpayers. Congress usually passes a “patch” each year to fix it, but this year, the AMT is at the bottom of the fiscal cliff.

Along with higher income-tax rates, there would be higher tax rates on investment income.

The tax rate on capital gains — the profit realized from the sale of capital assets such as stocks, bonds and real estate — would go from 15 percent to 20 percent for most taxpayers.

Dividends, which are currently treated like capital gains and usually taxed at 15 percent, would be treated as regular income, subject to tax rates as high as 39.6 percent.

The marriage penalty would return, imposing higher tax rates on married couples filing jointly than on single filers separately.

The inheritance tax would go from 35 percent for estates valued over $5.12 million to 55 percent for estates valued over $1 million.

The $1,000 child tax credit for each qualifying child would be slashed to $500 per qualifying youngster.

Child-care and dependent-care tax credits also would be reduced. The $3,000 deduction for one child would be lowered to $2,400, and the $6,000 deduction for two children would be cut to $4,800.

[perrhaps]

I wouldn't mind paying my fair share of additional taxes if I would be guaranteed it could only be used to pay off debt.

[Acid Trip]

I wouldn't mind paying my fair share of additional taxes if I would be guaranteed it could only be used to pay off debt.

:bwaha:

[perrhaps]

:bwaha:

Scoff if you must, but if you think that we'll get out of this mess by just cutting spending, you're as delusional as Mrs. Bittersworth's husband.

[Acid Trip]

Scoff if you must, but if you think that we'll get out of this mess by just cutting spending, you're as delusional as Mrs. Bittersworth's husband.

I'm laughing because no politician would ever agree to that.

You have to remember that politicians are smarter than the rest of us. They prefer that all new revenue be appropriated by a committee. Raising revenue with a set purpose denys politicians one of their favorite powers.

Now try and think back to a time when a politician stripped them self of power. I can't think of a single instance other than the King who gave up his throne to marry a common woman.

[perrhaps]

I'm laughing because no politician would ever agree to that.

You have to remember that politicians are smarter than the rest of us. They prefer that all new revenue be appropriated by the committee in charge. Raising revenue with a set purpose denys politicians the pleasure of spending it as they see fit.

Understood. Politicians ARE smarter than us, because we keep reelecting them, nicht wecht?

[Acid Trip]

Understood. Politicians ARE smarter than us, because we keep reelecting them, nicht wecht?

We keep electing them because we are masochists. Why else would we inflict such pain on ourselves?

[Muddy]

I wouldn't mind paying my fair share of additional taxes if I would be guaranteed it could only be used to pay off debt.


Im not paying any more for the money to be paid towards frivolous dept those mother fuckers racked up... Make some god damn cuts and pay that shit that way.. I pay E fuckin nough my friend..

[Southern Belle]

Bring it on. People will finally get tired of the bs and vote them out.

[Loser]

Understood. Politicians ARE smarter than us, because we keep reelecting them, nicht wecht?

Wrong, the "majority" of people vote them back in.

Majority being democrats, and everyone on welfare and section 8.

[FBD]

Scoff if you must, but if you think that we'll get out of this mess by just cutting spending, you're as delusional as Mrs. Bittersworth's husband.
Scoff if you must, but if you think there's any way out of this mess that doesnt involve almost entirely spending cuts, you are delusional. We do not have a revenue problem. We have a spending problem. We have a problem of a federal reserve that has enabled the government, for decades, to spend far more than it takes in.



Bring it on. People will finally get tired of the bs and vote them out.

Yeah, we just tried that, but unfortunately we have voter fraud to deal with. O'scumbag cares not for who votes, but for who counts them. Selectively targeted areas are all it takes, as we just witnessed.

http://cdn.theatlantic.com/static/mt/assets/politics/Election2012tippedmore.jpg

[Muddy]

Why is the Northeast so liberal? Is it because most liberals are not religious (as I've noticed)

[FBD]

Because a lot of them would rather be all heart and no brains? Because the Unions told 'em so? Because they have vicious Europe envy? Because deficits dont matter? Progressives have been at this a hundred years, and most of us only heard the word progressive (unless say teddy roosevelt was being described) a couple years ago and have no idea of the origins of pie in the sky utiopia progressivism? (Or how any means will justify those ends for those zealots?)

I dont get it. All of the people around here that have half a brain do not support progressive policies, lots of people really dont care (so long as it doesnt affect them, but then when it does, vote for a familiar name?) Every single person in these parts I've ever had any debate with, if they are "liberal"...they cannot back it up in the face of real world data that pretty much always proves them wrong. And you basically only get so far before they start getting insulted that they are being told and shown how and why they are wrong.

I'm forced to conclude I'm surrounded by fkn idiots! I mean really, what kind of person hates Obama, hates his policies, but still votes for him because "Mitt" is a weird sounding name??? (yes I actually got that as an excuse from one person...)

[perrhaps]

[QUOTE=FBD;396869]Scoff if you must, but if you think there's any way out of this mess that doesnt involve almost entirely spending cuts, you are delusional. We do not have a revenue problem. We have a spending problem. We have a problem of a federal reserve that has enabled the government, for decades, to spend far more than it takes in.

Didn't Bush the Younger also run up the deficit? Did he win reelection by voter fraud too? When Reagan ran up the deficit, was it okay, because it was for a good cause?


I'm Republican, although I'm thinking about changing my registration to Libertarian. We loved our Congressman here, because he could really "bring home the bacon" to our district.

I'm turning 60 next month, and I'm thoroughly ashamed that my generation, both Ds and Rs, have piled up a mountain of debt for our youth to suffer for. Maybe it's just the way I was raised to save for things I wanted to buy, etc., but this nightmare occurred on my watch, and my peers and I have to pay a significant part of the price to set things right.

[FBD]

yessir he did, we all heard deep bitch endlessly about medicare part d, etc. that's why I put decades in there.

as to winning by voter fraud...I dont know - but if we're going by the supreme court ruling, I agree with that - recount all of it or none of it, dont let one candidate pick and choose which counties he wants to have recounted. sorta like while I dont agree that a corporation = a person, I agree that wrt the political spending, keep it even - either let companies and people spend what they want, just like all the unions and shit, or limit them ALL (which I would have preferred.) but then we wind up with some abstruse reasoning in the verbiage of the court's ruling for people to argue over, and not be arguing over the actual issue itself.

reagan...anyone running up the deficit is bad. sometimes you have to put a thing or two on a credit card if its an emergency - but you cannot LIVE off of them like we've been doing for the last 12 years.

I dont want my congressman bringing home bacon or any fkn thing else. I want him to honor the goddam constitution and gtfo the way and let people live their lives.

the information war has been going on for a long time - and that's really your generation's excuse - but in this day and age, lack of information is no longer a valid excuse, the internet changed all that. now it is time to act and right the ship and toss out the drunks that have been driving it. the only problem is, the drunks have guns and they've barricaded the doors to the control room.