Wednesday, May 10, 2006

The Bill to Extend Tax Cuts for the Wealthy.

GOI: Here we go again.The following information and commentary is about the latest bill to extend the tax cuts and comes from CNN's Lou Dobb's program:

HOW MUCH WOULD YOU SAVE?

INCOME AVERAGE SAVINGS
$20k-30k $9.00
$50k-$75k $110.00
$100k-200k $1,388.00
More then $1 million $41,977.00

GOI: Then we hear from Len Burnham from the Tax Policy Institue:

Burnham:You'd expect, of course the tax cut to be bigger for higher income people but even as a share of income, it grows--the higher the income, the larger the tax cut is as a share of income.

John Roberts (Reporter): So are tax cuts good for the economy? Congress has been slicing tax rates for five years. The GDP is humming along, the DOW is flirting with record territories.

Burnham: (laughing) The stock market was last in record territory in the late 1990's when tax rates on capital gains where higher then they are now.

Reporter's voice: But what has even non-partisan observers really ticked off is what they call a "revenue raising gimmick" to keep the cost of the bill below $70 billion dollars. A price tag that that Republicans could pass with a simple majority. It would allow investors to convert traditional IRA's, funded with pre-tax dollars into so-called ROTH IRA's by paying taxes on the accounts investment gains. The bill's supporters say it will raise almost $6.5 billion dollars over the next 10 years. But because ROTH IRA's grow tax free (in the decades after that) critics say it will cost the government some $35 billion.

Steve Ellis from Taxpayers for Common Sense:

Ellis: This is all about taking care of the now and forgetting the future. This is denying future generations some of the revenue that they were anticipating to help pay for the cost of government then.

Roberts: And then there is the spectre of adding another $70 billion dollars to the deficit at a time when the debt is heading toward $9 trillion dollars and competative foreign governments like China hold a lot of it. That is what even non-partisan observers say could be a looming national security threat.

GOI: Yey!!

10 comments:

Tom said...

This tax cut is insane. Bush and the Republican congress is a disgrace.

james said...

Tom:

Yep. They can see the hand-writting on the wall that they are going to be booted from Congress and so are trying to get away with a much as they can now.

james said...

Also:

THE OVERSEAS CORPORATE GIVEAWAY:

While the poor and most of the middle class get virtually nothing from the new tax package, some big corporations with overseas operations make out handsomely. Companies like GE and Citicorp save $4.8 BILLION through a new tax break "aimed at corporations that earn profits overseas through their financing arms."

Soon, we’ll also likely see a renewed push to repeal or effectively gut the estate tax (aka the Paris Hilton Tax Cut) -- at a cost of up to $1 trillion in the next decade.

Kvatch said...

It's even more dramatic if you look at it in terms of percentages of income.

james said...

Kvatch:

Yep.

Underground Logician said...

Wah! What a bunch of whining socialists.

Give the money back to the people who pay the most.

Kvatch said...

Yes indeed...though he may be good at logic (though I doubt it), the skill of division seems to elude our Underground Logician.

Tommy Gnosis said...

There was a time around here when UL at least tried to make a well-reasoned point. I guess that time is over. Let the name calling begin!

Tommy Gnosis said...

Btw, tax cuts + deficit spending does not equal smaller government. It equals putting higher taxes on our children and grandchildren, that is to say if there's still a country left for them.

Underground Logician said...

Paolo Migli:

Don't be such a poopey head!