As we approach the end of 2012, you’ve likely heard lots of talk among politicians and the media about the impending “fiscal cliff.” This term refers to a combination of tax increases and spending cuts that are slated to take effect in January 2013 if Congress fails to take action. But how will this affect you?
Payroll Tax – 2013 will bring the expiration of the payroll tax cut enacted by Congress in 2011. Starting next year, the current employee payroll tax rate of 4.2 percent will go back to 6.2 percent.
I’m in the camp that believes Republicans have no choice but to agree to raise taxes on the top 2 percent of earners. The party has been successfully caricatured as the servant of the rich. This is unjust, yes, but justice is imperfect in this life. It’s political suicide for Republicans to stand fast on maintaining current rates for high earners even at the cost of raising taxes for everyone else. Imagine if we went over the fiscal cliff. In January, Obama would call upon Congress to pass a law restoring the tax rates for 98 percent of filers. What could Republicans do then, refuse?
There is a time for strategic retreat. Republicans are not without tactical opportunities though. They can reply, as my friend Michael Medved has suggested, that if the Clinton tax rates are desirable, so are the Clinton spending rates. They could resurrect a budget from 1998 and pass it. Democrats would protest that 1998 spending rates are not remotely commensurate with our needs. But wait, don’t they argue that the Clinton years were economic utopia? Were people living in cardboard boxes on the streets in the 1990s? While they’re at it, they could propose Clinton levels of regulation, too.
The True Disciple of Saul Alinsky by Patrick J. Buchanan… ~ (“What to do? Forget the deal. Walk away from the talks with Geithner. Pass an extension of the payroll tax cut, and send it to Harry Reid. Pass the Bush tax cuts, and send them to Harry Reid and say: “Harry, you are going to have to pass this extension of the tax cuts, or kill them, or send us a counteroffer. Do nothing, and you, not we, will take America over the cliff.”)
What to do?
“Harry, you are going to have to pass this extension of the tax cuts, or kill them, or send us a counteroffer. Do nothing, and you, not we, will take America over the cliff.”
The Crisis of Liberalism… (“If his heralded new majority for change does not triumph in congressional and state elections in 2012 or …”)
“We came to build a future,” to do the “great things” that “will meet history’s test.” He concluded, “This is our calling. This is our character.”
And that had been his ambition all along. “Let us transform this nation,” he implored in 2007 when he announced his candidacy for president. As Election Day 2008 approached, he promised, “We are five days away from fundamentally transforming the United States of America.”Those words mean this will be a different country when he’s finished with it. If, Rip Van Winkle-style, one had slept through the Obama Administration, one would awaken, as it were, in a new land.
A report from President Obama’s National Economic Council released Monday contends the families would see their taxes rise by an average of $1,600 if the George W. Bush-era tax cuts expire as scheduled at the end of the year.
Remember, Obamacare is only legal if it’s understood as a tax. But normally when Congress amends tax law, which the mandate would do, there is language in the text of the bill that references the U.S. Tax Code and how the current bill will amend it. For example, here is the text of the Bush Tax Cuts in 2003:
“AMENDMENT OF 1986 CODE