>>Another Must Read Bomb blast from Nancy Matthis of American Daughter on Obama’s taxes.
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We can all be grateful to Nancy Matthis for getting news that may escape the rest of us. Thanks again Nancy. It isn’t true as our President likes to say that only the “fat cats” will be taxed. No siree. So will you all! People making as little as $33,000 will also see higher taxes thanks to our President and out of control congress. See for yourself what the Obamanation didn’t want you to see.
After reading Nancy’s post you may also want to read these Nationa
Review articles: THE EDITORS: As debt explodes, the president offers no leadership. An Obama-Size Government.
RICH LOWRY: Pres. Barack Obama is a budgetary Don Quixote. The Budget Poseur.
THOMAS SOWELL: Because soaring political rhetoric leaves out such grubby things as costs, it sounds like a great deal. Politicians in Wonderland. BB
By Nancy Matthis | Tuesday, February 2nd, 2010 at 6:06 pm
Rumor has it the White House told Reuters to scrub the details of the middle class tax hit. Here’s a screenshot of the sanitized page. Usually we don’t copy entire articles from news sites, but abide strictly by “fair use.” However, just in case this information could be lost, we are going to make an exception here. We pulled this copy from a surviving Canadian site. [Note: Within moments of our taking the copy, the Canadian site was also scrubbed.]
Backdoor taxes to hit middle class
Mon Feb 1, 4:09 PM | By Terri Cullen
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.
Other bloggers are carrying copies of the story also:
The Patriot Room — Reuter’s story on Obama tax increases pulled; read it here [Note: Shortly after we posted this link, the page became unavailable.]
Reuters published a story titled “Backdoor Taxes to Hit Middle Class” late afternoon on Monday; however, shortly thereafter retracted the story and removed it from its website. The White House had contacted the news service to point out “significant errors” that were made in the story, which ultimately led to removing the story. Initially promising an update, Reuter’s will not [be] writing a substitute story. The article addresses the expiration of the Bush tax cuts and how they will end up hurting the middle class, which they will.
The article’s writer, Terri Cullen, worked at the Wall Street Journal for over 13 years, where she was also the editor of the column “Fiscally Fit.” She has experience and knowledge in this category, so it’s not like Perez Hilton writing about derivatives trading.
Cullen wrote that middle class citizens would ultimately be hurt when the Bush tax cuts expire, but may have already been hurt because Congress failed to extend tax breaks that expired on January 1, 2010. The White House contacted Reuters and said there were “significant errors” in the story, none of which Cullen or the White House would point out.
This sounds like another case of the Obama administration controlling what information should and shouldn’t be released….
Big Journalism — Did Reuters Yank Article Because It Was Too Truthful?
Sometimes, the truth hurts. In the case of an article published yesterday at 4:04 p.m. Eastern, it appears that Reuters editors were afraid writer Terri Cullen’s adventure into truthful journalism might hurt their news agency’s relationship with President Barack Obama — so they yanked it….
Comment: Yes, including Facts in an Anti-Obama story was an error. Reuters will never do it again.
Talking Points Memo — White House Gets Reuters To Pull Budget Story
Obama administration aides appealed to the Reuters White House reporting team to kill a story by another reporter of the news service that suggested the president’s new budget blueprint included “backdoor” tax hikes….
No Left Turnz — Too Little With Too Much
If you didn’t read the Reuters article relative to this topic this morning, you are too late to do so now. The article has been “withdrawn”. Is it possible that all of the promises of “transparency” were just the necessary diversions needed in order to attain higher office?….
Environmental Republican — Reuters Bows to Obama
Reuters has always leaned to the left and at times sounded more like Pravda or TASS than the Soviet organizations themselves did. Today, they’ve solidified their hold on the title of News Agency That Kisses Obama’s Ass The Most….
Newspapers were meant to keep politicians in check but that ethos has all but been lost on the MSM with the exception of Fox News, the Wall Street Journal and the NY Post. The Founding Fathers must be rolling in their graves.
Good, Bad, and Ugly — Backdoor taxes story… Reuter’s feedback
**Is it true that you removed a story last night that was critical of Obama’s new budget tax implications for the middle class because of pressure from the White House? If so, shame on you!
**I was surprised and dismayed by the retraction of the article regarding back door tax increases. This smacks of a political agenda where this organization appears to suppress stories that do not conform with its goals. The government has may methods for disseminating its point of view and I’m fairly certain that it does not need your organization to vet stories to present the government in a flattering light.
**Why did you bow to the white house pressure to cancel your report on the back door tax increases included in obamas new budget?? you people obviously have no spine to let a socialist/marxist radical change our country to his radical revolutionary mission with unsustainable deficits without reporting it to the readers of your news organizations.
**This morning I read your article “Backdoor Taxes Hit Middle Class” and now find that the piece has been removed with a message that it will be updated or replaced later this week. Why did you give in to the White House’s demand to scrap your article, “Backdoor taxes to hit middle class?” Did they threaten you? Regardless of your answer, your reputation has been compromised….
**It’s nice to know what was once considered a credible news organization is now taking its direction from the Obama administration. I am extremely disappointed in your caving in to the thought police…. Your succumbing to seemingly Obama censorship is just appaling. This is just one more indication how we are rapidly becoming a banana republic of the north following Hugo Chavez and Castro governement role models.