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The tea party let that happen?
I thought they obstructed crap like this.
Apparently.
I was certainly aware of it while it was occurring, and there was no apparent outrage coming from anyone in the Republican controlled House or the Republican minority in the Senate.
For the last 22 months, everyone has been paying higher taxes. The Senate Democrats agreed to keep the 10% bracket for single filers with taxable income up to $6,000, joint filers up to $12,000, and heads of households up to $10,000, but all the other tax brackets would revert back to 1993 levels:
the 25% bracket has been increased to 28%;
the 28% bracket has been increased to 31%;
the 33% bracket has been increased to 36%; and
the 35% bracket has been increased to 39.6%.
The irony, or audacity, (take your pick) of it is that they called the bill that INCREASES taxes: The American Taxpayer Relief Act of 2012
Congress massively increased taxes beginning on January 1, 2013. Of course they are going to generate more revenue.
I hope you also realize the there is no correlation between what Congress budgets and what projected revenues would be. For Fiscal Year 2014 Congress budgeted $3.7 trillion, even though they knew projected revenues would only be $3 trillion. Then they proceeded to spend $4.4 trillion, adding yet another $1.4 trillion to the National Debt.
When the budget is based upon anything Congress wants, and not tied to projected revenues, then deficits and/or surpluses have no meaning.
Quote:
Originally Posted by greywar
Massively increased taxes? OMG no!
Ohh you mean the one where a family with a 600K income, and 105K in itemized deductions would see a 2% increase? That massive increase?
What about people making less then 200K? you know, the vast majority? oh...not so much?
Apparently me and you have different ideas on what constitutes a massive tax increase...
When you consider that less people are working full time 40 hour jobs - yes it is a massive tax increase if somehow records are broken with less people paying into the pool.
Here are your tax increases...
1. Payroll Tax: increase in the Social Security portion of the payroll tax from 4.2 percent to 6.2 percent for workers. This hits everybody at a 2% clip. For every $50,000 - that's $1,000 to the treasury.
2. Top marginal tax rate: increase from 35 percent to 39.6 percent for taxable incomes over $450,000 ($400,000 for single filers).
3. Phase out of personal exemptions for adjusted gross income (AGI) over $300,000 ($250,000 for single filers).
4. Phase down of itemized deductions for AGI over $300,000 ($250,000 for single filers).
5. Tax rates on investment: increase in the rate on dividends and capital gains from 15 percent to 20 percent for taxable incomes over $450,000 ($400,000 for single filers).
6. Death tax: increase in the rate (on estates larger than $5 million) from 35 percent to 40 percent.
7. Taxes on business investment: expiration of full expensing—the immediate deduction of capital purchases by businesses.
8. Another investment tax increase: 3.8 percent surtax on investment income for taxpayers with taxable income exceeding $250,000 ($200,000 for singles). [Obamacare]
9. Another payroll tax hike: 0.9 percent increase in the Hospital Insurance portion of the payroll tax for incomes over $250,000 ($200,000 for single filers). [Obamacare]
10. Medical device tax: 2.3 percent excise tax paid by medical device manufacturers and importers on all their sales. [Obamacare]
11. Reducing the income tax deduction for individuals’ medical expenses. [Obamacare]
12. Elimination of the corporate income tax deduction for expenses related to the Medicare Part D subsidy. [Obamacare]
13. Limitation of the corporate income tax deduction for compensation that health insurance companies pay to their executives. [Obamacare]
I will be impressed when we have a record cut in spending.
You know - now that the tax regulations are in place - it is not difficult to begin readjusting the numbers downward. All that is needed is some obscure lines in legislation, such as...
In public law 111.3 paragraph 1 (A)(3), replace $250,000 ($200,000 for single filers) to $150,000 ($125,000 for single filers).
Perhaps, but it was Speaker Boehner's compromise with the Democrats in July 2012 that screwed all taxpayers. The 1993 tax increase the Democrats passed, that was suspended by a GOP controlled Congress in 2001, was put back into effect on January 1, 2013. Which, of course, explains why revenues have increased.
Quote:
Originally Posted by lycos679
Can you let the rest of us know what you are talking about?
Quote:
Originally Posted by BentBow
The tea party let that happen?
I thought they obstructed crap like this.
The "fiscal cliff" was rapidly approaching at the time. This was the compromise.
When you consider that less people are working full time 40 hour jobs - yes it is a massive tax increase if somehow records are broken with less people paying into the pool.
Here are your tax increases...
1. Payroll Tax: increase in the Social Security portion of the payroll tax from 4.2 percent to 6.2 percent for workers. This hits everybody at a 2% clip. For every $50,000 - that's $1,000 to the treasury.
2. Top marginal tax rate: increase from 35 percent to 39.6 percent for taxable incomes over $450,000 ($400,000 for single filers).
3. Phase out of personal exemptions for adjusted gross income (AGI) over $300,000 ($250,000 for single filers).
4. Phase down of itemized deductions for AGI over $300,000 ($250,000 for single filers).
5. Tax rates on investment: increase in the rate on dividends and capital gains from 15 percent to 20 percent for taxable incomes over $450,000 ($400,000 for single filers).
6. Death tax: increase in the rate (on estates larger than $5 million) from 35 percent to 40 percent.
7. Taxes on business investment: expiration of full expensing—the immediate deduction of capital purchases by businesses.
8. Another investment tax increase: 3.8 percent surtax on investment income for taxpayers with taxable income exceeding $250,000 ($200,000 for singles). [Obamacare]
9. Another payroll tax hike: 0.9 percent increase in the Hospital Insurance portion of the payroll tax for incomes over $250,000 ($200,000 for single filers). [Obamacare]
10. Medical device tax: 2.3 percent excise tax paid by medical device manufacturers and importers on all their sales. [Obamacare]
11. Reducing the income tax deduction for individuals’ medical expenses. [Obamacare]
12. Elimination of the corporate income tax deduction for expenses related to the Medicare Part D subsidy. [Obamacare]
13. Limitation of the corporate income tax deduction for compensation that health insurance companies pay to their executives. [Obamacare]
I will be impressed when we have a record cut in spending.
You know - now that the tax regulations are in place - it is not difficult to begin readjusting the numbers downward. All that is needed is some obscure lines in legislation, such as...
In public law 111.3 paragraph 1 (A)(3), replace $250,000 ($200,000 for single filers) to $150,000 ($125,000 for single filers).
Quote:
Originally Posted by DRob4JC
The "fiscal cliff" was rapidly approaching at the time. This was the compromise.
Finally, someone who actually remembers! For a minute there I thought I was alone.
I completely left out all the other provisions of of the American Taxpayer Relief Act of 2012, deliberately. It was hard enough just convincing anyone that the "Bush tax cuts" have not existed for the last 22 months - until you showed up.
I was certainly aware of it while it was occurring, and there was no apparent outrage coming from anyone in the Republican controlled House or the Republican minority in the Senate.
For the last 22 months, everyone has been paying higher taxes. The Senate Democrats agreed to keep the 10% bracket for single filers with taxable income up to $6,000, joint filers up to $12,000, and heads of households up to $10,000, but all the other tax brackets would revert back to 1993 levels:
the 25% bracket has been increased to 28%;
the 28% bracket has been increased to 31%;
the 33% bracket has been increased to 36%; and
the 35% bracket has been increased to 39.6%.
The irony, or audacity, (take your pick) of it is that they called the bill that INCREASES taxes: The American Taxpayer Relief Act of 2012
Not ironic, just have to look at it from their point of view Obviously, they got relief from the taxpayers. They always tend to name them like that. Can also usually count on that "for other purposes", as well.
Both the Economic Growth and Tax Relief Reconciliation Act of 2001 and the Jobs and Growth Tax Relief Reconciliation Act of 2003 (known together as the "Bush tax cuts") had been extended for years. First by a Republican controlled Congress, then by a split Congress. However, after the July 2012 compromise, both bills were allowed to lapse.
The Economic Growth and Tax Relief Reconciliation Act of 2001 did not cut taxes as much as it completely negated the Democrat enacted retroactive tax increase in 1993. In order words, The Economic Growth and Tax Relief Reconciliation Act of 2001 returned the tax levels back to 1992 levels.
The bill where you can read more about the Boehner Compromise was called the American Taxpayer Relief Act of 2012 (Pub.L. 112–240, H.R. 8, 126 Stat.2313, enacted January 2, 2013).
It should also be noted that the law was enacted the day after the law went into effect. Making it retroactive, and therefore in violation of Article I, Section 9, Clause 3 of the US Constitution - again.
Don't forget fun stuff like this, either.
H.R.325- 113th Congress (2013-2014): No Budget, No Pay Act ...
quote:
Suspends through May 18, 2013, the current $16.394 trillion public debt limit.
...
Requires the appropriate payroll administrator of each house of Congress to deposit in an escrow account all mandatory payments for compensation of Members of Congress serving in that house if by April 15, 2013,
Average income grows? Median income is down over 7% since Obama took office. It's down nearly 10% over the last 10 years. We've only had a month or two with income growth, and that is measured in 1/10s of a percent.
Now if you want to Talk about the top 1%... OH BABY!!! Their income has grown nearly 40% in the last decade!
There's a reason for that. And it may not be what you think...
Quote:
Originally Posted by InformedConsent
The problem is the progressive federal tax system in the U.S. Because of our highly progressive tax system, the government is overly dependent on making sure the income gap is as wide as possible, and that they don't discourage the revenue producers too much by taxing them at rates that are too high therefore either driving them and/or their capital available for investment out of the country, or causing them to scale back on their productivity and income because there's a tipping point at which they decide they have enough for now and don't need to earn as much thereby significantly lowering their effective tax rate and dramatically reducing federal tax revenue.
I'll let this economist explain it:
Quote:
"[Economist Anatole] Kaletsky argues that over-reliance on progressive taxes creates "a perverse incentive for governments to promote income inequality. Ifthe solvency of the stateand the ability to fund basic services for the poorest people in society depends on the rich getting even richer, it is tempting for even the most progressive politicians to support widening inequalities."
For example, in the U.S., the top 1% earns 18.7% of the income, but pays 35.1% of the federal income tax revenue, roughly twice their fair share which is 4 times what the middle class pays (the middle class pays only about half of their fair share of the federal income tax compared to their share of the income). The problem with our country's progressive tax system is that it creates a perverse incentive for the federal government to enact policies that promote as wide of an income gap as possible in order to maximize tax revenue.
As long as the U.S. has a progressive tax system, the incentive remains to keep the income gap as wide as possible, and this is why: When the top 1% loses income share, the federal government loses twice that much in tax revenue. But when the top 1% gains income share, the federal government consequently gains twice that much in tax revenue. Another way to look at it is that the federal government receives 4 times more income tax revenue per dollar earned from the top 1% than they do from the middle class, so guess whose income they're going to favor and protect.
Furthermore, the countries with more income equality have regressive tax systems, mostly based on VAT, consumption, etc., instead of one's income. Pay close attention to the charts:
Think very carefully about that... It's counterintuitive, and some people get angry when this is pointed out to them, but it actually turns out to be true.
And true to form, Mr. 'tax the rich's' presidency has resulted in EXACTLY what was predicted by the liberal economist quoted above.
H.R.325- 113th Congress (2013-2014): No Budget, No Pay Act ...
quote:
Suspends through May 18, 2013, the current $16.394 trillion public debt limit.
...
Requires the appropriate payroll administrator of each house of Congress to deposit in an escrow account all mandatory payments for compensation of Members of Congress serving in that house if by April 15, 2013,
This is why Boehner has to go as Speaker. The Democrats might as well control the House the way Boehner violates the US Constitution. What possible difference could it make?
This is why Boehner has to go as Speaker. The Democrats might as well control the House the way Boehner violates the US Constitution. What possible difference could it make?
Seems the top priority is getting paid. Doesn't look like D or R makes a difference.
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Obviously, they got relief from the taxpayers. They always tend to name them like that. Can also usually count on that "for other purposes", as well.
