Backdoor taxes to hit middle class-Reuters 02/02/2010
THIS ARTICLE WAS PULLED FROM WEBSITE WITH NO EXLPANATION FROM REUTERS. NEW YORK (Reuters.com) --The Obama administration's plan to cut more than $1 trillion from the deficit over the next decade relies heavily on so-called backdoor tax increases that will result in a bigger tax bill for middle-class families. In the 2010 budget tabled by President Barack Obama on Monday, the White House wants to let billions of dollars in tax breaks expire by the end of the year -- effectively a tax hike by stealth. While the administration is focusing its proposal on eliminating tax breaks for individuals who earn $250,000 a year or more, middle-class families will face a slew of these backdoor increases. The targeted tax provisions were enacted under the Bush administration's Economic Growth and Tax Relief Reconciliation Act of 2001. Among other things, the law lowered individual tax rates, slashed taxes on capital gains and dividends, and steadily scaled back the estate tax to zero in 2010. If the provisions are allowed to expire on December 31, the top-tier personal income tax rate will rise to 39.6 percent from 35 percent. But lower-income families will pay more as well: the 25 percent tax bracket will revert back to 28 percent; the 28 percent bracket will increase to 31 percent; and the 33 percent bracket will increase to 36 percent. The special 10 percent bracket is eliminated. Investors will pay more on their earnings next year as well, with the tax on dividends jumping to 39.6 percent from 15 percent and the capital-gains tax increasing to 20 percent from 15 percent. The estate tax is eliminated this year, but it will return in 2011 -- though there has been talk about reinstating the death tax sooner. Millions of middle-class households already may be facing higher taxes in 2010 because Congress has failed to extend tax breaks that expired on January 1, most notably a "patch" that limited the impact of the alternative minimum tax. The AMT, initially designed to prevent the very rich from avoiding income taxes, was never indexed for inflation. Now the tax is affecting millions of middle-income households, but lawmakers have been reluctant to repeal it because it has become a key source of revenue. Without annual legislation to renew the patch this year, the AMT could affect an estimated 25 million taxpayers with incomes as low as $33,750 (or $45,000 for joint filers). Even if the patch is extended to last year's levels, the tax will hit American families that can hardly be considered wealthy -- the AMT exemption for 2009 was $46,700 for singles and $70,950 for married couples filing jointly. Middle-class families also will find fewer tax breaks available to them in 2010 if other popular tax provisions are allowed to expire. Among them: * Taxpayers who itemize will lose the option to deduct state sales-tax payments instead of state and local income taxes; * The $250 teacher tax credit for classroom supplies; * The tax deduction for up to $4,000 of college tuition and expenses; * Individuals who don't itemize will no longer be able to increase their standard deduction by up to $1,000 for property taxes paid; * The first $2,400 of unemployment benefits are taxable, in 2009 that amount was tax-free. As expected, Barack Obama’s 70 minute State of the Union address focused heavily on the economy and the domestic political agenda. This was hardly surprising in the aftermath of last week’s catastrophic defeat for his party in the Massachusetts special Senate election, where the Republicans scored an historic victory. American voters are turning strongly against the president’s health care reform package as well as his big government vision for the economy, which has contributed to spiraling public debt and mounting unemployment, now standing at over 10 percent. But the scant attention paid in the State of the Union speech to US leadership was pitiful and frankly rather pathetic. The war in Afghanistan, which will soon involve a hundred thousand American troops, merited barely a paragraph. There was no mention of victory over the enemy, just a reiteration of the president’s pledge to begin a withdrawal in July 2011. Needless to say there was nothing in the speech about the importance of international alliances, and no recognition whatsoever of the sacrifices made by Great Britain and other NATO allies alongside the United States on the battlefields of Afghanistan. For Barack Obama the Special Relationship means nothing, and tonight’s address further confirmed this. Significantly, the global war against al-Qaeda was hardly mentioned, and there were no measures outlined to enhance US security at a time of mounting threats from Islamist terrorists. Terrorism is a top issue for American voters, but President Obama displayed what can only be described as a stunning indifference towards the defence of the homeland. The Iranian nuclear threat, likely to be the biggest foreign policy issue of 2010, was given just two lines in the speech, with a half-hearted warning of “growing consequences” for Tehran, with no details given at all. There were no words of support for Iranian protestors who have been murdered, tortured and beaten in large numbers by Mahmoud Ahmadinejad’s thuggish security forces, and no sign at all that the president cared about their plight. Nor was there any condemnation of the brutality of the Iranian regime, as well as its blatant sponsorship of terrorism in Iraq and Afghanistan. As the example of Iran showed, the advance of freedom and liberty across the world in the face of tyranny was not even a footnote in the president’s speech. I cannot think of a US president in modern times who has attached less importance to human rights issues. For the hundreds of millions of people across the world, from Burma to Sudan to Zimbabwe, clamouring to be free of oppression, there was not a shred of hope offered in Barack Obama’s address. Obama’s world leadership in his first year in office has been weak-kneed and little short of disastrous. He has sacrificed the projection of American power upon the altar of political vanity, with empty speeches and groveling apologies across the world, from Strasbourg to Cairo. He has appeased some of America’s worst enemies, and has extended the hand of friendship to many of the most odious regimes on the face of the earth. Judging by the State of the Union address tonight, we can expect more of the same from an American president who seems determined to lead the world’s greatest power along a path of decline. What was really happening in Copenhagen? 12/21/2009
The so-called leader of Venezuela opened up at the Copenhagen conference and let everyone know what Copenhagen was really about. Sure, they say it’s about the theory of global warming; but is it really? Maybe it is for the gullible and easily misled. But for the liberals and the leftist dictators of the world it’s more than that for them it’s an opportunity. When Chavez came before the conference there was a deafening applause. This applause was for a leftist dictator who oppresses his people and imprisons his opposition. He then began to express what he thought Copenhagen represented. He thought it represented the beginning of a revolution, a revolution against the imperial west and its economic system, capitalism. His solution: socialism. At this point the crowd roared with approval. Take a good look at what is proposed at the conference. They want to implement caps on carbon emissions, create a fund supplied by the wealthy nations and given to developing nations, and they want to create a global regulatory body. Is this not a liberal or socialists dream. The liberal will be happy because the unjust and oppressive free and capitalist nations will have to obey a global (European like) doctrine, which will force America and Americans to conform to the liberal’s way of thought. It will reign in those evil businesses, which create jobs for people who want to be selfishly successful and will donate their hard earned money to developing nations that are in need. Yes, nations like Venezuela, with leaders like Dictator Chavez, will receive our hard earned money. This guy and others like him believe a Copenhagen agreement will further their cause, which is to limit the power and control of America and other free nations and create popularity for their way of governing. It’s an opportunity for them to begin expanding their control and overtake the free world in numbers and strength. The world is truly at a fork in the road and it will be the next two elections here in the United States that will determine which path we take. The re-election of democrats and Obama will lead us down a path of American apologies and the creation of unelected world bodies. A leader who continues to apologize to the world will only justify those who demonized our nation, like Chavez, and as a result give them more credibility. The creation of world bodies will restrict and limit the control of the super powers (as they will be the only ones to conform) and will create an opportunity for nations, like Venezuela, to expend their strength. The end result will be devastating for democracy and capitalism and therefore the individual. The election of a strong conservative republican President and a conservative republican majority in the house and senate will create a traditional American leadership. Where America holds its head up high and fights for its sovereignty, defends and expands democracy and capitalism throughout the world, and an America that will assist in the restriction and limitation of socialism and socialist dictators control. Decide the path for yourself. But my choice is FREEDOM!!! Post Title. 11/29/2009
Since it is now known, without a doubt, that the stimulus package has been an utter failure. Well, maybe not an utter failure, it did succeed in the horrifying expansion of control over state governments and the American people (that’s for another time). But the question is, now that we know the porkulous has failed, where do we go from here? First things first, stop the giveaway and use the money for other purposes such as paying down the federal deficit. Obama should then swallow his pride and take a look at Reagan’s economic policies. His conservative approach to economic growth and job creation led to a period known as, The Great Expansion, which spans from 1983 until 1999. Ronald Reagan's economic policies of deregulation, supply-side tax cuts, and reining in federal spending with a long term outlook of deficit reduction is what lead to the largest economic expansion in the history of the United States. These policies freed the American people from the robbery and dictation of Government and allowed their entrepreneurial spirit to take charge. The American people began to spend their money the way they wanted, they began to invest and act on their innovative ideas, and Businesses expanded. This allowed all Americans to begin their path to conquer their American dream and because of these policies we maintained our stance as the innovation and economic capital of the world. Below, is a chart comparing the Reagan and the Clinton economic era. While it clearly shows a greater expansion under Reagan, it was his policies that laid the foundation for economic expansion to continue well into the Clinton era.  Childhood Capatilist 10/09/2009
I remember as a kid, always thinking of way’s to increase my weekly allowance. For a few extra bucks, I’d do anything, whether it was doing a little extra around the house or going to the neighbors to see if they needed any lawn work done. My neighborhood friends and I, even went as far as opening our very own corner store at the end of the block. It would be open each Sunday from 9 till 3 in order to catch those going to and from church. Each of us would go to church on Sunday as well, but would plan on going to different masses, to ensure the corner store stayed open throughout the day. Of course it wasn’t an actual corner store. But our imaginations ran wild back then. It was my imagination that kept me motivated. I was always a dreamer (some would say a capitalist). Indeed, I knew that one day, every one would know my name. Whether I was an actor, entrepreneur, or President of the United States, I just knew I’d be famous. My mother always encouraged me even though my future career choice continuously changed. She would always remind me that I live in the United States of America a country in which all a child has to do to reach his or her dream is to learn how to be responsible for themselves and work hard. She was being truthful when she told me that. Today, the government is calling for an increased presence in all of our lives. This presence will create hurdles for an individual to overcome before reaching their dreams. Even worse, it rewards irresponsibility and encourages citizens to be complacent. Because of this I worry that when I tell my children what my mother told me......I may not be truthful! Post Title. 07/09/2009
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