Federal Tax Cut Not as Advertised

That is, if you narrow the definition of "tax" to "federal income tax" (as opposed to, say, federal cigarette taxes or carbon surchages), change the definition of "Americans" to "American households," and "95 percent" to "75.5 percent." And it's better to just ignore the tax-cranking going on at the state and local level:

A free fall in tax revenue is driving more state lawmakers to turn to broad-based tax increases in a bid to close widening budget gaps.

At least 10 states are considering some kind of major increase in sales or income taxes: Arizona, Connecticut, Delaware, Illinois, Massachusetts, Minnesota, New Jersey, Oregon, Washington and Wisconsin. California and New York lawmakers already have agreed on multibillion-dollar tax increases that went into effect earlier this year.
Thanks to hit and run for the info.

So during Obama's whole campaign, there were so many libtards out there claiming that Obama was going to cut more taxes than McCain. Perhaps, but I guess we'll never know. I would say however, that I don't think McCain would have outright lied about how much he was actually going to cut taxes. Say what you will about McCain, he's RINO, too liberal, he wears depends... But he's not a liar.

He's referring to the "making work pay" refundable tax credit, which is only available to workers. There would be no credit for retirees or those who are unemployed; a more modest 75.5% of all households would benefit, whether their members are working or not.

It is also questionable whether all of the tax refunds can properly be called "tax cuts." The credit is refundable and, therefore, is going to many who earn so little that they pay no federal income taxes in the first place. The White House calls them tax cuts, but the nonpartisan Congressional Budget Office officially scores the bill's refundable credits under "direct spending."

-On the issues

Also, what the morons that voted for B-Dawg didn't realize, and I often tried to explain, was that taxes wouldn't truly be lowered. Your income tax might be a small, infinitesimal amount smaller, but there would be other, new, bigger taxes to be had. Par exemple, carbon offsets, federal cigarette taxes, tax as punishment (AIG Execs), etc.

And what the freak is going on with all these new state taxes? I would hate to live in California or New York right now. It won't be long until they take your whole pay check, and just give you the items they deem necessary to your survival.


virna@tax said...

There are so many tax issues these days. I really hope that these will come to an end for the benefit of all.

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