Tax Hike Prevention Act of 2010, S. 3773

Don't let Pelosi, Reid and Obama kill more jobs with a tax hike.

S. 3773 prevents nearly $4 trillion in tax hikes over the next decade. Specifically, it would:

•Keep income tax rates right where they are. That means that the lowest rate would remain at 10 percent, rather than rising to 15 percent. It also means that the top rate (at which a majority of small business profits pay tax) would stay at 35 percent, rather than rising to 39.6 percent

•Keep the capital gains and dividends tax rate at 15 percent. Under the Pelosi-Obama-Reid (POR) tax hike, the capital gains tax rate is set to rise to 20 percent in 2011. The dividends top rate is set to rise to an astounding 39.6 percent in 2011

•Keep the death tax from rising to a 55 percent top rate with a small $1 million exemption. Instead, the death tax would be 35 percent with a generous $5 million exemption to protect most small businesses and family farms

•Prevent tax hikes on families, including a return of the marriage penalty and cutting the child tax credit in half

•Index the alternative minimum tax (AMT) to inflation. Under S. 3773, the number of AMT taxpayers should remain constant, rather than the sharp rise in AMT families that the Pelosi-Obama-Reid (POR) tax hike would result in.

S. 3773, the “Tax Hike Prevention Act of 2010” is a common-sense bill. It simply keeps in place the tax structure America has lived under for the past decade. It avoids a huge tax hike in the midst of a weak economy that will kill jobs. It’s supported by the American people, and should be voted on by the Senate before the election.

Text mostly from Americans for Tax Reform

Congress again puts politics ahead of rescuing the economy

Obama and the Democrats find yet another way to keep the economy sinking, sinking, sinking--mass uncertainty about taxes. Yes, Mr. Obama's plan is working.

"The delay could complicate the financial planning of millions of Americans. "You're going to have families sitting there thinking about the tax consequences in end-of-life situations," said Alan Rothschild, chairman of the American Bar Association's section on estate law. "That's a horrible situation." The estate tax, which lapsed in January, will return next year at rates up to 55% unless Congress acts."

Congress Punts on Taxes - WSJ.com

Tax strategies for boomer retirees

Make sure the Bush tax cuts are kept. They are due to expire, and Miz 109 million Hillary wants to raise your taxes. And so does Mr. O-Socialist. Don't let Hillobama roll back the economy so they can take more control of your life.

The Coming Tax Bomb

The tax code changes enacted in 2001 and 2003 are scheduled to expire at the end of 2010. If they do, statutory marginal tax rates will rise across the board; ranging from a 13% increase for the highest income households to a 50% increase in tax rates faced by lower-income households. The marriage penalty will be reimposed and the child credit cut by $500 per child. The long-term capital gains tax rate will rise by one-third (to 20% from 15%) and the top tax rate on dividends will nearly triple (to 39.6% from 15%). The estate tax will roar back from extinction at the same time, with a top rate of 55% and an exempt amount of only $600,000. Finally, the Alternative Minimum Tax will reach far deeper into the middle class, ensnaring 25 million tax filers in its web.

The Democrats and taxing the rich

The campaign ads display Hillabama pulling out all the old, old class rhetoric from the 60s--I guess they don't realize all those spoiled, struggling boomers the lefties romanced back then are now well-heeled 60 year olds. They were in control of Congress for so many years, I wonder why all of society's problems weren't fixed? Yes, they will stop those tax breaks for the rich. Drum roll. Women faint. Men swoon. Businesses and corporations leave for friendlier climes.

The Democrats created the Alternative Minimum Tax in 1969, but due to bipartisan neglect neither party has fixed it. It's a mess of unintended consequences--known as the "stealth tax." It was originally set up to punish 19,000 very successful, wealthy Americans who weren't paying taxes (millions at the bottom don't pay taxes because people at the top pay for them, but that's OK--that's fair). The AMT was not set up to account for inflation, so now it scams many who are not even close to wealthy by today's standards, and if you're subject to it, you can't deduct your state and local taxes. The AMT wasn't even set up to get revenue--it was some bureaucrat's idea of "fair," and it never even achieved that! It's a boon for the tax preparers, though; that's one industry our government constantly helps out--compliance costs the US taxpayer millions and millions and many hours that could be used productively in something else. Now with the bipartisan ennui, they are raking in so much money, they're afraid to drop it, so they make temporary fixes and patches. Twenty six million Americans will be snagged by the AMT for 2008 according to today's paper*, up from 4 million for 2007 and 2006.

And how about that wonderful, bipartisan stimulus package? Those who contribute the most to the economy and pay the most taxes will get nothing back. The $112 billion in "stimulus" is phased out for individuals paying taxes on incomes over $75,000, or jointly on $150,000. How's that for fair?

Nor will there be "debt relief" for those who were sensible and played by the sound rules of 20% down, fixed rate mortgages, and a budgeted percentage of their income for housing. They'll be bailing out the neighbors who went for no money down, false documents and the adjusted rates, which if they had read the contract, always go up. They have no choice but to send more money to Washington, because if they don't, the neighborhood will go. What Suckers! But Hillabama to the rescue. They'll fix it--by making the honest guy pay.

*Although I don't have a link to the article I read on the AMT, here is one very similar.

obama