Obama’s Anti-Prosperity Crusade

Pages: 1 2

Athough President Obama’s persistent contention that extending the Bush cuts would be “irresponsible” and only help the rich, a new Tax Foundation analysis released Oct. 7 finds that low-income workers would have a financial setback. Ironically, the meager-income folks he would hurt are a big part of Obama’s voter base. The Bush tax reductions will expire at the end of 2010, unless Congress extends them.

In a town-hall discussion in Washington Sept. 20 on CNBC television, Obama claimed: “Our tax rates are lower now than they were under Ronald Reagan. The federal government is probably less intrusive now than it was 30 years ago,” he fantasized.

If the tax relief isn’t extended, most of the old higher taxes will kick in. Sunset provisions were included for both the 2001 and 2003 tax laws. While Obama has convinced much of the public that the Bush tax cuts were mainly for the wealthy, “taxpayers across the entire income spectrum received a significant tax cut,” the Tax Foundation analysis noted. Moreover, the earned income tax credit (EITC) for the working poor, originally enacted as an anti-poverty measure, will be affected, too, if the tax provisions in the stimulus package of 2009 are allowed to expire.

If one compares changes in after-tax income, it shows that the benefit of the tax cuts were distributed much more equally along the income scale, because the Bush tax cuts included many provisions targeted specifically at low-income people. Folks with low incomes benefited from some stimulus measures enacted in 2009. They also are scheduled to expire at year’s end, namely, by the expansion of the earned income tax credit, as well as larger credits for college education. Various tax proposals made by members of both political parties extend most of these low-income tax provisions. But, as the Tax Foundation study points out, “the current Congress has shown itself to be unusually susceptible to gridlock. No vote will occur before the midterm elections. And although both parties have indicated the tax matter will be addressed in a lame-duck session after the Nov. 2 elections, there’s no certainty of legislative agreement then either.”

Because the threat of entire expiration of the tax cuts is quite possible, it is important to consider what effect it would have on low-income taxpayers. Take the EITC. It’s a sizeable gift for the working poor. Workers with wages within a certain range and very limited investment income are eligible. The credit is refundable, meaning that workers who have no income tax liability get the credit in the form of a check. When a worker reaches an income level at which the credit is considered unnecessary, the credit starts to decline. Before the Bush tax cuts, the credit amounts were the same for both single people and married couples. This was a component of the so-called marriage penalty. If two single EITC recipients –maybe living together—got married, their combined income often would make them ineligible for the EITC. The Bush tax cut changed this by increasing the income threshold at which the credit starts to phase out for married filers.

The 2009 stimulus law added a new more generous EITC category for tax filers claiming three or more dependent children.

The present Republican proposal is to extend all the Bush tax cuts without any stimulus law provisions. Democrats in Congress would extend both the Bush EITC and some stimulus provisions, too.

Pages: 1 2

  • Ret. Marine

    The election coming upon us in a couple of weeks will be nothing but a disaster for the entire country. Why? because it will place the Republican's in a no-win situation all around, on one hand the dem's will paint the party of no as the problem, on the other the Republicans will have to somehow dig us all out of the mess the dem's have intentionally caused on all of us, with a pretender-n-thief at the helm, no one wins.
    The pretender-n-thief is smiling like a cheshire cat these days as he knows the only one who comes out of this mess he and his cronies have created is him. I pity this TRAITOR, before God and every soul on judgement day, we will know him to be the Son of Satan.

    • bubba4

      Can you elaborate a bit on the "mess" that the "Dems" have caused?

      Republicans have obstructed as much as the system allows already. In unprecidented amounts they obstruct and filibuster even the the simpliest process. This has been their unabashed political strategy.

      THEY WANT NOTHING TO HAPPEN. Are you kidding me? Dead-lock is their "A" number 1 priority. They are all looking ahead to getting power again while we all languish and no one invests. They strike at your confidence and stir your fear so you are uncertain about the future also.

      • shane

        Bubba4 obviously comes from the Gordon Gekko “Zero Sum Game” of economics. You blame-America-first types should move to the People’s Paradise of Cuba. You can all starve and languish together while raising your fists in righteous indignation at the USA.

    • shane

      Nice Ret. Marine! I wish more Americans would see the Manchurian Teleprompter for who he really is. POTUS has blazed a trail for the U.S. to wind up like so many other socialized western counties – weak and broke. But look at the bright side, at least every 1st grader will know how to use a condom.

  • http://www.myspace.com/freddawes1776/ Fred Dawes

    If obama can we would all be poor and helpless befoe government and our foes. and yes it will be a non win for us all, read Ret. Marine

  • Cuban Refugee

    The country, especially its poor, will be reaping what it sowed when the majority of its citizens blindly fell for the Hope and Change mantra, and elected a Marxist to the highest office in the land. In true Alinsky fashion of saying one thing and doing another, Obama's "hope" is synonymous wth despair, and his "change" is another word for stealing from anyone with an honest dollar in his pocket, and redistributing misery to all. As an experienced agitator and community organizer, Obama will deliver his tyrannical medicine by dispatching his union thugs, his "civilian" army, and his powerful, ever-expanding I.R.S. who all will get in the dissenters' faces and produce the barrel of a gun to enforce the rules. The new directives and regulations whipped up in the mixing bowl of hell's kitchen by the unconstitutionally-appointed czars and constructionist liberal judges will bring about the end of our sovereign, constitutional republic. Those, like the corrupt "journolists," who helped to bring this nightmare to fruition will not be living in the utopia they envisioned, but in a black hole maelstrom of universal darkness.

    • Fndr1954

      Cuban Refugee – Well said. Can I quote you?

      • Christie!

        She's really quite something, isn't she??????

    • bubba4

      You must be a lot of fun at parties…

      Reading FPM and this other garbage has really scrammbled your eggs. If half of the bs you are talking about were true, wouldn't you truth tellers already have been disposed of?
      Wouldn't a union sniper or IRS agent with a shotgun already have killed Horowitz and Limbaugh. Wouldn't Fox have been nationalized and Hannity put in stocks while dangerous powerful people like the peron Sniper pretends to be…wouldn't they be on FEMA train cars headed for re-education camps…

      Look it's quite simple…the Republicans want back power and FPM wants to help. It's been two years since the entire system almost collapsed. There is no way any sane person would want to revert back to what we were just doing. So, they have to help you. All this wild sh*t is just that…just red meat so you middle class morons will vote the Republicans back in…even though it's clear they don't give a dead donkey's kidney about you or about the well being of the country (as a whole).

      "black hole maelstrom of universal darkness." you're so melodramatic. It's tax policy and your writing the book of revelation.

      • Bellane

        You're quite articulate — good for you — you have learned the Dem talking points…Congratulations! Some day you will find out the truth.

      • Cuban Refugee

        Bubba 4, who and what are you besides a useful idiot? Were you sent out by the Huffington Post or MoveOn.org to stir the Front Page pot? If so, you need a bigger spoon and a different recipe — profanity, hatred, insults, and ridicule make for a vile stew that will spoil any party.

        • bubba4

          More melodrama from you…maybe you are hypersensitive and can't take the pinprick of an opinion you aren't familiar with…

          I've been posting on this board for years and years…I wish I was getting paid for it. I've considered making a blog…but I really don't care enough for that. I will humor and insult and so forth, but it is never empty…and never in hatred.

          "Ridicule is the only weapon which can be used against unintelligible propositions. Ideas must be distinct before reason can act upon them."
          - Thomas Jefferson

          That's for the tea party folks in the house….

      • Dennis X

        goog job!!!

      • shane

        "All this wild sh*t is just that…just red meat so you middle class morons will vote the Republicans back in…"

        Yet again the leftists of the world reveal their never ending contempt for the mass unwashed – the middle class (and any others that disagree with their Marxist Pragmatist world view.

        Bubba4, could you quote some Nietzsche next time?

    • LCDGarmin

      Obummer is a corporatist. He received more funds from the corporate world than any presidential candidate in US history. That makes Obummer a capitalist and both he and the corporate world are laughing at the little people.

  • hijinx60

    If, or rather when the republicans win in Nov. , the pretender-n-thief will not rely on the passing of laws. He will rule by executive fiat thus circumventing the congress. His disdain for the Constitution will mean that he will attempt to become dictator-n-thief. We will be up the proverbial s–t creek without a paddle.

    • sue805

      If the republicans get Congress, at least one paddle we'll have is the House controls the money, or so I'm told. If the dictator-in-chief can't get any money, that should slow him down some, including defunding the most socialist programs this Congress has passed in the last four years. Let's hope we can flush the toilet on NOVEMBER 2, and rid ourselves of a bunch of undesirable you-know-what, and then continue to "nudge" ourselves back toward the Constitution, one flush at a time!

  • Wesley69

    The failure to pass the Bush tax cuts is part of our Philosopher King's game, class warfare. Get the people mad at the evil rich, though they create the jobs of the middle and lower classes. Its also the old idea of divide and conquer. Just look at how unified we are under this "post racial" president. Additionally, Mr. O. wants more money for his other schemes. He doesn't care if the poor get hurt. Their support is just a tool of power for His Majesty. Unless the Bush tax cuts, a reduction in the Corporate Tax Rate, a total review of ObamaCare, repealing harmful provisions, this nation is in trouble because the Philosopher King wants, needs, yearns for a crisis.

    You know that transactions in gold over $600 will need to be reported. Here's something new. If you want to sell your home, the federal government demands 3.8% of the total sale as a sales tax. BOTH OF THESE PROVISIONS WERE IN OBAMACARE.

    All tyranny needs to gain a foothold is for people of good conscience to remain silent.
    Thomas Jefferson

    • bubba4

      "Get the people mad at the evil rich, though they create the jobs of the middle and lower classes"

      Yeah but why didn't it happen. We fell down this pit of sh*t under Bush, under these fantasic job creating tax cuts for the wealthy and no capital gains tax. So how in the world can you not incorporate that information.

      "You know that transactions in gold over $600 will need to be reported. Here's something new. If you want to sell your home, the federal government demands 3.8% of the total sale as a sales tax. BOTH OF THESE PROVISIONS WERE IN OBAMACARE. "

      Prove it. Pray tell from where did you glean this little nugget?

  • SeaMystic

    Obama's Economics result!

    As an 18th century writter once stated on economics:"The only individual who can take a valuable commodity like paper, print on it and make it worthless is the Ruler".
    Inflation is a theft against all Individuals Earnings, Savings and Pensions.
    This is why Individuals are presently rushing to Gold for security, as countries are printing excessive currency without any true backing.
    Future Economics is like riding a wild Bronco, STICK TO THE SADDLE!

    My background: I've been involved in the Gold market of and on since 1967, when the British Pound devalued.

  • SeaMystic

    Saul Alinsky's theory is to destroy the U.S.A.. One of the prime method is through the present financial policies of Obama.
    Currency printed without proper backing will eventually replicate what happened to Germany in the 20's.
    This will cause the U.S.A. to lose its Democratic processes through Riots and Martial law, due to National Bankruptcy affecting all social structures. A future totalitarian leader and Government will be the result.

    IMPEACH OBAMA NOW, OR ELSE THINK MAO, LENENIN, STALIN AND MOHAMMED.

    • bubba4

      holy cow man…take off the tinfoil hat for a second and join us in reality.

      Is someone holding an essay contest for the most insane dytopian future they can imagine….wake up…

      • seamystic

        Bubba,
        Take off your size two hat and study the effects of currency printing without backing.
        Prrofessional Democratic agitators have their identities tied to their crutch and not the Universal heart.
        Obviously that's you.

  • WilliamJamesWard

    If the new Congress in January will investigate the financial
    dealings of Obama and the democrats we may recover a large
    amount of money. My thinking is that there was considerable
    fraud in all of the stimulus and other programs. First I would like
    to see those democrats that voted him into office have to pay
    for his depredations and our excess tax burden. After the
    investigations, the Obama crew can all work off what they can
    on road gangs, that is if honest judges can be found. Top to
    bottom America needs a grand purge of thieving thugs, leftist
    trash and communist moles, Oh! they are one in the same……..William

    • Cuban Refugee

      I join you in your beautiful retributive fantasy, William, although some might call it folie a deux. Whether it happens in this lifetime or the next, the cabal who are destroying our republic will pay.

  • bubba4

    I don't get it. Haven't you been paying attention Tait?

    "The Bush tax reductions will expire at the end of 2010, unless Congress extends them."
    Gee…why will they expire? Because they were designed to sunset….it would have been "irresponsible" to let them continue and Bush and the Republican Congress that passed it didn't want to deal politically with the "cost" or loss of revenue past 2010.

    Obama has been pretty clear….let the middle class tax cuts stay but let the ones for the rich expire like they were designed to do. The rich can pay 3% more which is what we are talking about. It's been a banner year for people with money they can afford it and the government can recover from bailing their asses out two years ago.

    Companies are sitting on large amounts of cash, but instead of investing or creating jobs, many of them are acquiring other companies and buying back their own stock. Yeah tough times.

    I think Tait knows what he's doing….but this is an dishonest argument. Maybe Tait is afraid he'll have to start paying some capital gains tax….boo hoo.

    • Mrc

      Bubba4
      tell me are you that mis-informed, that stupid or the biggest liar ever?

  • Dennis X

    that should be " good job" to Bubba 4

  • Dave

    I think the dow jones was about 6,000 when President Obama took office and it is about 11,000 now. That doesn't sound like his anti-prosperity policies are working very well.

    • Gerry

      @Dave…….lol……The reason the stock market has gone up is because the weakening of the dollar and all the stimulus money doled out as well as Bernanke printing up his monopoly money. Because of the cheap dollar big bank are taking their interest free money and trading in the markets. It appears you have no idea that the money in your pocket is losing its value. So make sure you thank Obama for that too.

      And unless you been in the market it has not help you or this country one bit in the short or long term. All it is is more fraudulent wealth for the banksters!