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"Making Work Pay" tax credit going away in 2010 ?

Discussion in 'Political Zone' started by Kangaroo, Apr 29, 2009.

  1. Kangaroo

    Kangaroo Active Member

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    http://www.foxnews.com/politics/fir...et-obamas-tax-credit-expire-budget-blueprint/

    WASHINGTON -- A top Democrat in the Senate announced a budget blueprint Tuesday that would scrap Barack Obama's signature tax cut after 2010 and blends sleight of hand with modest restraint on domestic programs to cut the deficit to sustainable levels.

    Senate Budget Committee Chairman Kent Conrad, D-N.D., promises to reduce the deficit from a projected $1.7 trillion this year to a still-high $508 billion in 2014. But to do so, he assumes Congress will let Obama's "Making Work Pay" tax credit delivering $400 tax cuts to most workers and $800 to couples will expire at the end of next year. Those tax cuts were included in Obama's stimulus package.

    Conrad, D-N.D., who has for decades sought to highlight the dangers of permanent deficits and rising government debt, produced a budget plan bristling with both -- even after proposing to require wealthier taxpayers to pay higher rates income and capital gains.

    But Democrats point out that Obama inherited an unprecedented fiscal mess caused by the recession and the taxpayer-financed bailout of Wall St. Rather than retrenching, however, they still promise to award big budget increases to education and clean energy programs, while assuming Obama's plans to overhaul the U.S. health care system advance.

    The White House responded warmly to Conrad's plan, noting it embraced Obama's plans to boost spending on education and clean energy programs and allow for an overhaul of the U.S. health care system while sharply cutting back the deficit inherited by Obama.

    On the $400-$800 tax credits, White House budget director Peter Orszag noted that it will be in place for two years, giving the administration and Congress time to find ways to extend it.

    It's also becoming clear that Obama's controversial global warming initiative has experienced a setback as neither House nor Senate Democrats are directly incorporating Obama's controversial "cap-and-trade" initiative into their budget plans. The developments come on the eve of debate in the House and Senate budget committees as they take the first steps to pass Obama's $3.6 trillion budget plan for the fiscal year starting in October.

    House Budget Committee Chairman John Spratt Jr., D-S.C., will unveil his companion plan Wednesday.

    Obama's budget has ignited a firestorm on Capitol Hill, with Republicans assaulting it over record spending and budget deficits, while many Democrats remain wary of his plans to combat global warming and have sticker shock over his deficit figures.

    Obama is coming to appear before Senate Democrats at lunchtime Wednesday to promote his plan.

    "It puts us on the path over 10 years for a very different kind of country, one with less freedom, one with more government, one with this extraordinary debt, and one which our children will have a very difficult time affording," said Sen. Lamar Alexander, R-Tenn.

    Conrad's plan was released in the wake of new budget estimates that predicted Obama's plan would produce alarming estimates of red ink -- $9.3 trillion over 10 years and $2.3 trillion more than estimated by the White House just last month. Those estimates made his task significantly more difficult.

    "When you lose $2.3 trillion, you have to pay for things. You have to cut things," Conrad said.

    Conrad said his budget makes room for Obama's hopes to deliver health care to the uninsured. He said the plan would not add to the deficit over the long haul but that early up-front costs would be permitted.

    In the House, the health care overhaul could advance under special rules that could effectively cut Republicans out of the debate by preventing the possibility of a Senate filibuster. Conrad and others like Finance Chairman Max Baucus, D-Mont., disagree with the approach, saying that health care is too complicated to pass after just a 20-hour debate in the Senate.

    In grappling with the deficit, Conrad would cut Obama's proposed increases for next year for domestic agencies funded by lawmakers to growth of about $27 billion, or 6 percent.

    But Conrad also makes several shaky assumptions, especially that Congress will raise taxes by more than $114 billion over 2013-14 to make sure middle-class taxpayers won't get hit by the alternative minimum tax. He also saves $87 billion by promising Congress will come up with spending cuts or new revenues to avoid cuts in Medicare payments to doctors.

    Both problems have been fixed in recent years by using deficit dollars.

    Under Congress' arcane procedures, the annual congressional budget resolution is a nonbinding measure that sets the terms for follow-up legislation.

    The congressional budget plan also determines how much money to use for defense programs and domestic programs whose budgets are set each year by Congress, and it sets out the fiscal priorities of the governing party in Congress.

    Obama's plan to combat global warming would impose higher energy costs on consumers and businesses through a so-called "cap-and-trade" system for auctioning permits to emit greenhouse gases. But so many Democrats have recoiled at the plan -- which would sharply raise energy costs for consumers and businesses -- that House Speaker Nancy Pelosi of California and other environmentalists were forced to step back.

    Neither budget includes Obama's $250 billion set-aside for more bailouts of banks and other firms.
  2. ABQCOWBOY

    ABQCOWBOY Moderator Staff Member

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    It's interesting to me how the first thing to go away was the BS Tax Cut promise that was so central to the election.

    I continue to be amazed at how desperate America is for leadership.
  3. Kangaroo

    Kangaroo Active Member

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    Plus they are also going to let all the Bush Tax credits expire

    Look for your taxes to go way up but hey he did not raise taxes :rolleyes: on anyone making less than 250k
  4. JBond

    JBond Well-Known Member

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    Didn't we just add $364,000,000,000 to the federal deficit last quarter? America is desperate for leadership, I agree.

    The bigger continuing problem we face in my opinion is uneducated voters. How many people that voted for Obama understand that in 10 years we are going to have a 10 trillion dollar deficit at the very least. How many of them even understand what that means? They have no comprehension how much income the government will have to confiscate from citizens just to pay the interest. I bet most of them believe the lie Obama told when he guaranteed he will cut the deficit in half.
  5. WoodysGirl

    WoodysGirl Everything is everything... Staff Member

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    Well from what I've read, I think the Bush Tax credits will expire for families making more than 250k. Effectively raising taxes on those by simply reinstating previous tax rates.

    It will suck losing that extra $23 I'd been getting in my paycheck. It was really helping me. :rolleyes:
  6. ShiningStar

    ShiningStar Well-Known Member

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    I said this before JBond, the reason he is dealing in trillions is because the average person cant comprehend that amount. Billions we have heard about, but now we are in that crazy era of obscene money being doled out and people just dont get it. They cant fathom that much money. Bill Gates making a billion, people can get that, the government in debt for a trillion is the same as gafrillion, zillion crillion million, its just unheard of and the more in plays in that bracket the more he can get away with it.
  7. JBond

    JBond Well-Known Member

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    I have a question on the Bush tax cuts expiring. Do you know if Obama has clarified his position. I have heard all the cuts are going to be done away with and I have also heard just the cuts for those over the arbitrary 250k number Obama created will go up. Any idea which is correct?
  8. heavyg

    heavyg Active Member

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    You know my pay check never saw an increase. I guess I didn't get that tax break they were talking about :mad:
  9. WoodysGirl

    WoodysGirl Everything is everything... Staff Member

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    I think initially they all were to be done away with..

    Since that 250k number came about, I've consistently heard that they were going away for those over that number.

    Since the election, I've only seen tidbits here and there, but there seems to be some waffling over that, as well relating to specific items.
  10. heavyg

    heavyg Active Member

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    Just my opinion but I believe he will allow ALL of them to expire. He said he was going to return us to the pre-Bush taxes :eek:
  11. JBond

    JBond Well-Known Member

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    You must be one of those evil rich guys.
  12. heavyg

    heavyg Active Member

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    I wish I was. I am at the VERY LOW end of what is considered middle class.
  13. WoodysGirl

    WoodysGirl Everything is everything... Staff Member

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    From the primaries...

    http://www.ontheissues.org/2008/Barack_Obama_Tax_Reform.htm
  14. heavyg

    heavyg Active Member

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  15. WoodysGirl

    WoodysGirl Everything is everything... Staff Member

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    Well, this make work pay thing...and what I posted was related to two different things. This is what I found.


    However, if you really want to know if you're supposed to get a bump in your paycheck, I suggest going to the payroll person in your HR department.
  16. heavyg

    heavyg Active Member

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    Obama doesn't even understand this mess. How can the HR department in this podunk town understand it.....lol Obama is just a typical politician that said what ever it took to get elected. The problem is he is a VERY Liberal Democrate and he WILL raise taxes. The "I told you so's" will be coming very soon
  17. WoodysGirl

    WoodysGirl Everything is everything... Staff Member

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    It's not that difficult to understand. They simply adjust the payroll tax assessed on your pay check. It's not like it'll be significant. Just imagine $400 spread out over the course of the year.

    I work for a small company (well, I did...they just got swallowed up by the borg) and I assume the HR lady just got a head start on things.

    As an aside, I just read an article that most tax credits should begin to appear in weekly paychecks this month.
  18. heavyg

    heavyg Active Member

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    aaah....maybe thats the case. But like you I just don't know what im going to do with that $23. Maybe I can finally put new carpet in my house :bang2:

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