Archive for Bush Tax Cuts – To Extend or Not to Extend?
If Bush Tax Cuts Expire …
Posted by: | CommentsFor example, the more children a family has, the more its taxes will increase because the child tax credit will drop from $1,000 per dependent child to $500. Married couples will be affected differently than single families as the so-called marriage penalty will also return if the tax cuts are not extended.
Source: Newsmax.com
Bush Tax Cuts – To Extend or Not to Extend?
Posted by: | CommentsAs November elections near, some Democrats are signaling for the first time that the party might scale back plans to permanently extend Bush-era tax cuts for the middle class.
One example of allowing the Bush Tax Cuts to expire on December 31, 2010 would look like this:
Marriage and Taxes
Typical tax liability for various taxpayers for tax year 2011
| If Bush tax If cuts are | |
| cuts expire extended |
Married, two earners, two children $ 7,235 $ 5,383
earning $85000/yr
Single, no, children, $60,000/yr 8,236 7,484
Single, no children, $150,000/yr 29,962 26,996
Married, two earners, two children, $150,000/yr 22,776 19,268
Married, two earners, no children, $300,000/yr 64,181 61,292
Married, two earners, no children, $500,000/yr 130,210 123,900
===================================================================
For Democrats, one possible path would be to extend the cuts for six to 12 months, avoiding the difficult political questions raised by the issue in a lame-duck session after the mid-term election.
Now several Democrats (not including Nancy Pulosi) have articulated that a short extension of the Bush Tax Cuts is a possibility. It isn’t just deficit politics driving the discussion, but political reality on Capitol Hill. Lawmakers are fatigued from the ambitious legislative agenda pushed since Mr. Obama took office, and there is little appetite for taking on yet another sensitive issue.