2 Taxes on Wealthy Expiring:5 Yr. Phaseout Starts Jan.1; Move to Cost $27B

[Clara T]

2 Taxes on Wealthy Expiring: 5-Year Phaseout Starts Jan. 1; Move to Cost Treasury $27 Billion
2005-12-31
Chicago Tribune

By William Neikirk, Chicago Tribune, Chicago Tribune

Dec. 31--WASHINGTON -- They call them the PEP and Pease provisions of tax law, and they are on their way out. If you are wealthy, this should make you smile. You could be a little richer.

PEP and Pease refer to two tax increases adopted in 1990 when President George H.W. Bush broke his "read my lips" promise against boosting taxes in order to cut the deficit, angering many in the Republican Party.

But on Sunday, thanks to a law quietly passed in 2001 when his son, George W. Bush, was in the White House, the PEP and Pease provisions--essentially limitations on tax exemptions--will begin a five-year phaseout at a cost of $27 billion.

According to the Center on Budget and Policy Priorities, a liberal think tank here, about 53.5 percent of that money will go to households earning more than $1 million. Another 43.2 percent will go to those with incomes of $200,000 to $1 million. The rest will go those earning $100,000 to $200,000.

http://www.blackenterprise.com/yb/ybopen.asp?section=ybbf&story_id=87412502&ID=blackenterprise

[aquart]

1. Well, ain't we the stupidest, most suicidal nation on the planet.

[ogradda]

3. Why....yes...yes...

I do believe we are!

[rodeodance]

4. quietly passed by the repugant congress

[Sgent]

2. I think we should let these

expire, but instead raise the marginal rates to make up for it.

This provision is a paperwork nightmare and really is a pain in the arse.

[pinniped]

5. See, these assholes don't care about no stinking deficit.

--promise against boosting taxes in order to cut the deficit, angering many in the Repuke Party. --

[barb162]

6. I have the solution: let's tax the very poorest so the little baby

darling millionaires can keep more of the money

[Erika]

7. The GOP love draining the middle income to give to the rich

That's their agenda. They love and admire the rich, the stupid selfish GOP wannabees.

[sandnsea]

8. $122,000 in tax cuts

since 2001, for your average millionaire. So they could buy second, third and fourth homes and drive the housing market up. How sweet for them.

[unblock]

9. what total b.s. arguments they have

waaaaah, these provisions are incredibly complicated!
waaaaah, they're BACK DOOR tax hikes on the rich! you shouldn't use gimmicks, just raise the rates!
WAAAAAH!!!

TOTAL BU**SH**!!!

they're not complicated at all. they phase out exemptions and deductions. SIMPLE! i just described BOTH provisions in 6 words. nevermind that the rich can easily afford ACCOUNTANTS to help them out with complicated provisions anyway!

and as for 'back door' tax hikes on the rich, first off, what difference does it make -- since when is tax code purity such a big deal -- and worth just scrapping a provision, rather than FIXING it -- second, it's NOT a back door tax hike, it's a rate BUBBLE, because once the deductions/exemptions are fully phased out, your rate really is as stated.

[Erika]

10. Bush doing awaw with the middle class

While the Bushbots thank him and lick his boots.

[ngGale]

11. Great idea! We'll just let our grandchildren pay it....

Wouldn't want the 'poor' little rich kids to lose any family money.
Perhaps like the family of *. :sarcasm:

[indepat]

12. If only the wealthy would support the troops by donating their tax cuts

to the troops. ;)

[UpInArms]

13. in 2003 - 40 millionaires in the Senate

http://www.cnn.com/2003/ALLPOLITICS/06/13/senators.finances/

Senate millionaires	
John Kerry, D-Massachusetts: $163,626,399
Herb Kohl, D-Wisconsin: $111,015,016
John Rockefeller, D -West Virginia: $81,648,018
Jon Corzine, D-New Jersey: $71,035,025
Dianne Feinstein, D-California: $26,377,109
Peter Fitzgerald, R-Illinois: $26,132,013
Frank Lautenberg, D-New Jersey $17,789,018
Bill Frist, R-Tennessee: $15,108,042
John Edwards, D-North Carolina: $12,844,029
Edward Kennedy, D-Massachusetts: $9,905,009
Jeff Bingaman, D-New Mexico: $7,981,015
Bob Graham, D-Florida:  $7,691,052
Richard Shelby, R-Alabama: $7,085,012
Gordon Smith, R-Oregon: $6,429,011
Lincoln Chafee, R-Rhode Island: $6,296,010
Ben Nelson, D-Nebraska: $6,267,028
Lamar Alexander, R-Tennessee: $4,823,018
Mike DeWine, R-Ohio: $4,308,093
Mark Dayton, D-Minnesota: $3,974,037
Ben Campbell, R-Colorado: $3,165,007
Chuck Hagel, R-Nebraska: $2,963,013
Olympia Snowe, R-Maine: $2,955,037
James Talent, R-Missouri: $2,843,031
Arlen Specter, R-Pennsylvania: $2,045,016
Judd Gregg, R-New Hampshire: $1,916,026
John McCain, R-Arizona: $1,838,010
James Inhofe, R-Oklahoma: $1,570,043
John Warner, R-Virginia: $1,545,039
Kay Bailey Hutchison, R - Texas:  $1,513,046
Mitch McConnell, R-Kentucky: $1,511,017
Harry Reid, D-Nevada: $1,500,040
Sam Brownback, R-Kansas: $1,491,018
Thomas Carper, D-Delaware: $1,482,017
Ted Stevens, R-Alaska: $1,417,013
Maria Cantwell, D-Washington: $1,264,999
Barbara Boxer, D-California: $1,172,003
Orrin Hatch, R-Utah: $1,086,023
Mary Landrieu, D-Louisiana: $1,080,014
Bill Nelson, D-Florida: $1,073,014
Charles Grassley, R-Iowa: $1,016,024
*These figures are base estimates provided by senators on their financial disclosure forms. 

and here's what I can find (in 2002) about Congress:

http://www.commondreams.org/headlines02/1225-02.htm

A Richer Congress
Nearly Half of Incoming Freshmen are Millionaires

Wednesday, December 25, 2002

WASHINGTON –– Close to half the incoming members of Congress are millionaires and many will face votes that could affect their financial holdings.

For example, 11 of the 63 first-termers in the House and Senate have financial interests of at least $15,000 in banking or credit card companies, including bank directorships, according to an Associated Press review of financial disclosure forms filed during the campaign.

Among the issues the next Congress is expected to tackle is legislation that would make it harder for consumers to declare bankruptcy, a bill pushed by the banking industry.

Several incoming freshmen also have significant financial holdings in the pharmaceutical and oil industries, both of which could well be the subject of congressional action next year.

<snip>

Almost 43 percent of the incoming freshmen — 27 lawmakers — are millionaires, compared with 1 percent of the American public. Fourteen will take a pay cut to serve in Congress, where rank-and-file senators and representatives will receive $154,700 next year. In the previous freshman class two years ago, one-third were millionaires.

...more...

[Yupster]

14. Top Ten either all Dems or Reps

who are not running for reelection.

[Vickers]

15. They'll use the money to create new jobs

:sarcasm::sarcasm::sarcasm::sarcasm::sarcasm:

[maddezmom]

16. kick

[Thom Little]

17. New tax cuts give the rich a boost

More than four years after Congress passed President Bush's centerpiece tax-cut legislation, economists are still arguing over who has benefited the most - the middle class or America's most affluent.

But there isn't any doubt about who will be smiling most from the 2006 round of tax-cutting: It's the rich, and they're about to get richer.

Starting Sunday, two new pieces of Bush's original 2001 tax cut kicked in, both overwhelmingly aimed at households well into six figures of income. One provision eases restrictions on high wage-earners' ability to fully itemize their tax deductions; the other relaxes limits on the value of personal exemptions.

Together, they're expected to reduce federal income taxes by $27 billion over five years, with 97 percent of the benefits falling to those making at least $200,000 a year.



http://www.sacbee.com/content/politics/nation/story/14033226p-14865277c.html

[fasttense]

18. Seeing as how America is in debt up to our eyebrows

Someone is going to have to make up the difference. If the super rich get a $27 billion tax reduction, that means the middle class and poor get a $27 billion tax increase. I just love paying for the super rich's tax cuts. Maybe we can get them to put some of their wealth back into America. :sarcasm:

[mom cat]

19. Thanks for the reminder.

[Vinca]

20. I feel more and more like a servant every day.

It's a shame we can't vote "normal" people into office . . . the ones who'd be excited by their Congressional salaries and benefits because they've got Jack Squat otherwise. The nonwealthy have the brains for the job, but - sadly - it also requires a hefty bank account to even contemplate running for it.

[rodeodance]

21. gawd--this is SO maddening!!

[acmejack]

22. It's about time the oppressed rich received some help!

They have been neglected in favor of the disadvantaged for far too long. It is about time this neglected demographic's needs were attended to.

[Herstal]

23. If they insist on cutting taxes...

why don't they cut taxes for everybody? Instead only the "targeted" few get them. Better yet, let's reduce spending, then cut taxes later! BRILLIANT! If those critters in Congress could cut their pork, if the administration would quit no bidding contracts, if, if if.

[rucky]

24. Great News!

...if you're rich and have no conscience.