Sunday, September 26, 2010

Bush Tax Cuts becoming Obama Tax Hikes - Will Wyoming be Part of the Solution or Part of the Problem?

-- Bush tax cuts will become Obama tax hikes in January.
-- the following anti-growth tax hikes will occur:(see Heritage Article below)
-- Government spending is out of control, there are two basic solutions of fixing it.
-- Mead has his solution, Haynes has his.  Will Wyoming be part of the solution or go along and be part of the problem?
-- Do we need more of the same or do we need a fundamentally different approach?

Start keeping good track of your pay stub.  These next few months, with Thanksgiving - and dare I say: Christmas, could be the biggest percentage of take home pay you see in a great while.
Bush tax cuts, which Democrats never fully supported made it pass with reconciliation, deemed them an expiration date, or date of renewal.  On January 1, 2011 what we know as the Bush tax cuts are likely to become the Obama tax hikes.

Your pay stub in January is likely going to be quite different.
I suggest a gift-less Chirstmas filled with love of company, good food, games, reading, outdoor activities, and socks.  That's it.  Everybody gets some good quality socks.

The tax hikes will not just affect the wealthy or the rich - having the IRS gear up to come after them for not paying dues - it will be everybody.  But that is another issue.

In an August 5 publication, the Heritage Foundation wrote : The Obama Tax Hikes: Killing Job Creation

The real issue is that taxation has become uncontrollable, because spending at every level of Government has also grown, and then they tax more or collect more fees or fine more people, or like with BP - fine the business with a slap on a wrist, known in government circles as a multi-million dollar reward.
And no, it is not just in wars.  Even though some believe that pointing the finger at funding war is an emotional distraction of the masses, to keep the people and the media occupied while doing something completely different.  But that of course is another issue as well.

The budget is a mess, and it is a beast.  The basic principle behind this issue though is how to fix it.
There are really two solutions.
  1. Increase spending in another area so that the money can be shifted away from things the people don't like ... like wars, or windmills, or signs that say: "brought to you by stimulus funding" ... or as they are in Wyoming, "paid for by the one cent fund" ... Prioritize and "we can't afford that anymore.  See, I am fixing the budget."  And nothing really gets fixed because the Government still gets the peoples money, the level of spending still goes up but instead of increasing taxes, a dirty word that people hate and political suicide, they create tollways, licensing fees, registration fees, regulations to collect fines, one-cent funds because after all: 'it's for the kids' ... and Switch back and switch back, D to R, the people are always pissed and wanting change and never get it.
  2. Decrease spending, decrease taxation, and leave the people alone.  You flat cut programs that don't fit the role of government and you don't play word-smithing vocabulary tricks to dupe the people and save the government.  The people get the flat, hard, truth, and the people figure out how to run their lives, not the State.  You fix how you spend, you balance your budget with what you have, and when government gets smaller ... it requires less taxation of the people and their businesses and living to operate it.  Then people would be happy.
So let's apply that principle to Wyoming for just a minute ... Gov. Dave took office in 2003...
The budget for Wyoming in 2003-04 was $3.8B ... in 2009-10 it was $8.5B.
So if you think taxation will be a problem, you think government overspending and growing and then requiring more is a problem -- you would think.
When asked about the growth of government under Gov. Dave however, Matt Mead said : "I think the governor has responded accordingly to that and in a proper way. And so ... I do not think the growth of government in the last 6-7 years has been excessive"-- audio clip
In high contrast to what Mead is offering Wyoming, Taylor Haynes has a completely different approach.
Haynes says that by simply following the constitution, having Wyoming "draw the line" that Wyoming will take back all that tax from natural resources and use it in the state of Wyoming.  Part of that money would then eliminate the private property tax in Wyoming.  It would not eliminate funding things like roads, schools, police department, it just would not come out of the peoples pockets.
That's a pay raise in any home owners check book... Read MORE : Fundamental Differences : Haynes & Mead on Taxation  
Is this true? "If you're not part of the solution, you're part of the problem."

More details after the break ...
From the Daily Caller
Heritage study: ‘No income earner will be unscathed’ if Bush tax cuts expire for top earners

“No income earner will be unscathed,” states the Heritage Foundation in a new study released Monday, if tax cuts for wage earners making more than $250,000 annually expire this year.

The Bush-era tax cuts, which included relief for taxpayers across the board, are set to expire Dec. 31, and Congress is poised to debate whether to extend that relief for just the middle class, as Democrats have suggested.

In a live chat hosted by Heritage on Monday to tout the study, Bill Beach, the director of the Center for Data Analysis at the think-tank, said, “Millions of people at incomes below $250,000 will be affected … Those are jobs that young and lower-income workers want to have that won’t be there if President Obama and the Democrat leadership in Congress get their way in Congress. In addition, families everywhere will lose income that otherwise could have had.”

Read the study, titled, “Obama Tax Hikes: The Economic and Fiscal Effects.

According to the report, letting the tax cuts expire would lead to slower economic growth and less job creation over the next 10 years, as employment would fall by an average of 693,000 jobs per year. “In other words, for Americans who are unemployed now, their prospects of employment would worsen under the Obama tax plan,” the report states.

Those who will be most burdened if this plan becomes law are the millions of Americans just starting their economic lives and the millions more trying to find work after the worst recession in 60 years,” says the report. “The rest, whose lives are affected by the investments and business decisions of those taxpayers in the high-income classes, will share the burden. No income earner will be unscathed.”

In the report, Heritage offers the alternative that, “Instead of extracting more income from the private economy, Congress should immediately reduce its spending and enact fundamental entitlement reform that supports strong economic growth.”

On Monday, Obama reiterated his stance for allowing the tax cuts to expire for the top 2 percent wage earners, saying, “The first thing you do when you’re in a hole is not dig it deeper.” He argued that the government “can’t give $700 billion away to some of America’s wealthiest people” and still pay down the deficit.
2 + 2 = 4   Mr. President,  2 + 2 = 4 ...
from The Heritage Foundation :  Obama Tax Hikes: Bad for All Americans
If Congress passes the President’s tax plan, the following anti-growth tax hikes will occur:
  • Marginal income tax rates rise for families and small businesses making more than $250,000 a year:
  • the 35 percent bracket rises to 39.6 percent, and
  • the 33 percent bracket rises to 36 percent;
  • Capital gains rate rises from 15 percent to 20 percent;
  • Dividends tax rate rises from 15 percent to 20 percent; and
  • Certain exemptions and itemized deductions for high-income taxpayers are eliminated.
The following policies will remain in place:
  • Lower marginal income tax rates:
  • 28 percent bracket versus 25 percent, and
  • 31 percent bracket versus 28 percent;
  • 10 percent income tax bracket for all;
  • Alternative Minimum Tax (AMT) threshold indexed for inflation;
  • Marriage penalty reduction; and
  • Child tax credit increased from $500 to $1,000.
Rep. Stearns: Jobs will be put at risk if Bush tax cuts expire - increasing any taxes would be harmful.
By Bill Thompson
"U.S. Rep. Cliff Stearns announced Monday that he favors extending the so-called Bush tax cuts, citing a new report from a conservative think tank that said ending the reductions would cost hundreds of jobs in Stearns' district, and thousands across the country. ...
***"Raising taxes is not a sound fiscal policy given our struggling economy," the Republican said in a prepared statement.
"However, President Obama and the leadership in Congress want to allow current tax-relief provisions to expire at the end of this year, leading to a steep tax hike in 2011 that will devastate job creation."
Continue reading - go to page 2

***How about, NOT decreasing taxes and NOT cutting spending is harmful.  What does it have to do with the current economy?  Taxing is wrong, period.  This is a great example of a Republican with no back bone - doing the same thing Democrats do - take advantage of uncertainty / crisis / chaos - to gather up support in votes.
from The Heritage Foundation :  Extend the Tax Cuts

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