April 28, 2010 - Last week the Senate Budget Committee passed a fiscal 2011 budget resolution that includes an increase in the top tax rate on dividends to 39.6% from the current 15%—a 164% increase. This blows past the 20% rate that President Obama proposed in his 2011 budget and which his economic advisers promised on these.
http://online.wsj.com/article/SB10001424052748703709804575202481173165478.htmlJul 14, 2010- Senate Debate on Extending 2001/2003 Tax CutsThe Senate Finance Committee conducted a hearing on July 14, 2010 to discuss the potential extension of tax cuts. In the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) and the Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA), there were tax reductions for nearly all Americans. The tax reductions continue through 2010, but are set to be repealed on January 1, 2011.
The White House has proposed to extend these tax cuts for single persons with incomes under $200,000 ($250,000 for couples), but to increase the capital gain rate and top income tax brackets. Under the White House plan, the capital gain rate will increase from 15% to 20%, the 33% bracket increases to 36% and the 35% tax bracket is raised to 39.6%.
Senate Finance Chair Max Baucus (D-MT) opened the hearing by stating, "Americans are struggling to make ends meet, and we need to do all we can to put more money back in the hands of workers, middle-class families and small businesses so our economy can grow. I support extending the middle-class tax cuts permanently, as soon as possible, so working families can keep more of their hard-earned money."
Sen. Baucus and the White House are both advocating a permanent extension of the tax cuts for low and middle-income taxpayers, with an increase in taxes for those in the upper brackets.http://www.lssmngift.org/washington.jsp?WebID=GL2005-0481&D=201030Jul 21, 2010 - Top Rates Will Increase – Speaker Pelosi Members of both Parties joined the debate this week on income taxes. Without action by Congress, all of the tax reductions in the 2001/2003 tax acts will be phased out on January 1, 2011.
The White House has steadfastly maintained that the reductions for lower and middle-income brackets should be retained, while the reductions for the top brackets must be phased out.
Under the White House proposal, individuals with incomes over $200,000 ($250,000 for married couples) would pay higher taxes. The top two brackets will increase to 36% and 39.6%. In addition, the White House proposes that the capital gains tax rate returns to 20%.Senator Ben Nelson (D-NE) has expressed concern about the increase in taxes on upper income individuals. http://www.fwbgifts.org/washington.jsp?WebID=GL2003-0083&D=201031July 26, 2010 - Geithner and Reid Support Top Tax Rate Increases On a national media program on July 25, 2010, Treasury Secretary Timothy Geithner emphasized that the Obama administration plans to increase the tax rates for the top two brackets. When asked whether the 2001/2003 tax reductions should be extended for all brackets, Secretary Geithner stated, "I don't believe they should and I don't believe they will."
In the view of Secretary Geithner, the increase of the top two rates to 36% and 39.6% affects only "2% to 3% of Americans, the highest-earning Americans in the country." He suggested that the increased rates on top earners will not have a "negative effect on growth."
http://www.scfgifts.org/washington.jsp?WebID=GL2007-1039&D=201032August 3, 2010 -
House Majority Leader Steny Hoyer (D-MD) stated on August 3rd that he hopes the House will act to extend the 2001/2003 tax cuts before adjourning on October 8, 2010. House Democrats generally agree with the White House proposal that tax cuts should be extended for individuals making less than $200,000 ($250,000 for married couples).
Speaking at a Washington conference this week,
Treasury Secretary Timothy Geithner also emphasized the importance of extending the middle-class tax cuts and raising taxes for the top two brackets. When asked whether the tax system should be modified this year,
Sen. Conrad noted, "It is a losing strategy to try to rejigger the current tax code."
He prefers to wait for a November proposal from the National Commission on Fiscal Responsibility and Reform.
http://unmgift.org/?pageID=38&docID=588August 6, 2010 - Do Democrats have a plan to extend Bush tax cuts?Actually, President Obama has proposed formal plans to leave tax rates in place for the middle class while raising taxes on the wealthy -- for example, on pages 39 and 164 of his 2011 budget. We also re-capped Obama's history on tax increases.
http://www.politifact.com/truth-o-meter/article/2010/aug/06/do-democrats-have-plan-extend-bush-tax-cuts/August 18th, 2010 - Obama says Republicans oppose strengthening the child care tax creditDemocrats want to make it easier for working parents to pay for child care, but congressional Republicans don't think that's a good idea, President Barack Obama told his audience in Columbus, Ohio, on Aug. 18, 2010.
Asked whether the government has done anything to reduce child care costs, Obama said, "We have a child care credit in place. We’d like to make it stronger. This is one of those back-and-forths we’ve been having with the Republicans, because we actually think it is a good idea and they don’t. But I think that giving families support who have to work each and every day is absolutely critical."
Are Republican lawmakers really opposed to increasing the child care credit? We decided to look into it.
http://www.politifact.com/truth-o-meter/statements/2010/aug/27/barack-obama/obama-says-republicans-oppose-strengthening-child-/ August 26, 2010 - Is Obama Planning a Bush Tax Cut October Surprise?There is a feeling in Washington—perhaps even a fear—that President Barack Obama will, as an "October Surprise," call for legislation extending most but not all of the Bush tax cuts.
With the Republicans still hashing out their agenda for the fall, the thinking goes, a push to keep taxes from going up on all but the so-called "wealthiest Americans" will throw the GOP for a loop. A fall campaign based on class warfare, some Democrats believe, should bring out enough Obama voters to blunt the impact of the tide expected to swamp the majority in the upcoming congressional elections.
http://politics.usnews.com/opinion/blogs/peter-roff/2010/8/26/Is-Obama-Planning-a-Bush-Tax-Cut-October-Surprise.htmlSeptember 23, 2010 - Democrats delay vote on extending Bush tax cutsSenate Democratic leaders decided Thursday to delay a vote on preserving soon-to-expire middle class tax cuts until after congressional elections in November.
http://www.realclearpolitics.com/news/ap/politics/2010/Sep/23/democrats_delay_vote_on_extending_bush_tax_cuts.htmlSeptember 30, 2010 - Congress adjourns, but spending bills and Bush tax cuts still loomLawmakers head home to face voters in the midterm elections, putting off big decisions – such as on extending the Bush tax cuts.
But what stands out as Congress breaks for the next six weeks is what’s left undone. That includes all spending bills for the fiscal year beginning Oct. 1 and decisions on extending the so-called Bush tax cuts, now set to expire on Dec. 31.
Thirty-nine Democrats in the House and two in the Senate joined Republicans Wednesday in opposing motions to adjourn, citing the need to renew the tax cuts to assure business and the public that they will not incur big tax increases next year. In a floor speech, Republican leader John Boehner said that those members voting yes on the adjournment resolution were "putting their election above the needs of your constituents."
The list of Democrats opposing the adjournment includes many of the most vulnerable members heading into midterm elections, especially freshmen in seats formerly held by Republicans. In the end, Democrats adjourned the House with just one vote to spare, 210 to 209.
The tough adjournment vote was only the latest indicator of deepening divisions in Democratic ranks on tax and spending issues heading into midterm elections. This week 47 Democrats, led by Rep. John Adler (D) of New Jersey, called on Speaker Nancy Pelosi to extend the expiring 2003 Bush tax cuts on dividends and capital gains. Earlier this month, 31 Democrats called on Ms. Pelosi to extend the 2001 tax cuts for all income brackets, not just individuals earning less than $200,000 and families earning less than $250,000 a year. President Obama and House Democratic leadership have proposed those limits on a tax-cut extension.
http://www.csmonitor.com/USA/Politics/2010/0930/Congress-adjourns-but-spending-bills-and-Bush-tax-cuts-still-loomOctober 4, 2010 - Pelosi Cuts Off Bush Tax Cuts Debate Wounding Obama and the Democratic PartyAt 1:04 a.m. the morning of September 30, the Democratic Party, the Obama Presidency and Liberal America were given the last rites. Nancy Pelosi also all but insured she will be a lame duck speaker even if the Democrats retain control of the House.
The occasion was a seemingly routine vote on whether to adjourn the House until after the November elections, but the real issue behind this vote was whether to extend the Bush tax cuts for the rich. Pelosi cast the rare deciding vote from the speaker’s chair resulting in a 210-209 squeaker. Rather than risk a vote on the tax cuts, Pelosi decided to punt.
Pelosi’s single vote is testimony to her waffling on this issue, to the inability of the White House to rally its supporters and to the inability of the Democratic Party to stand for principles. The postponed vote and the indecision put the Democrats in a difficult position since without a vote the well-oiled GOP propaganda machine will ramp up its fear tactics, shouting that the postponement means the Democrats are going to raise everyone’s taxes, not just those of rich people.
Had Pelosi voted to continue the session it could have turned this campaign into a genuine contest of ideas. The argument that the recess was needed in order to allow vulnerable Democrats to campaign holds little validity since Pelosi controls the gavel and the Democrats the agenda. With any thought, the Democrats could have produced a carefully-coordinated campaign that turned up the heat on the Republicans, while still allowing their own candidates time to campaign.
http://thestrangedeathofliberalamerica.com/pelosis-vote-to-adjourn-congress-cuts-off-tax-bill-debate-and-cuts-the-heart-from-obama-and-the-democratic-party.htmlNovember 05, 2010 - Obama Wants Congress to Halt AMT Tax Hike on Middle Class by Dec. 31 President Barack Obama believes that Congress must act before the end of the year to stop a tax hike that would disproportionately hit middle-class earners, said White House Press Secretary Robert Gibbs.
Among those subject to this already-in-place tax increase are some families making less than $50,000 per year, and virtually all married couples earning between $100,000 and $500,000 a year, according to the CBO. (See earlier story.)
Congress could stop the tax hike by enacting legislation that temporarily increases the amount of income exempt from the Alternative Minimum Tax. The temporary reprieve passed by Congress for each of the past nine years expired on Dec. 31, 2009 and, so far, Congress has not extended the AMT "fix,” or “patch,” for 2010.
“What the president believes is, we have both houses coming back and that this is an issue that must and has to be dealt with in that session,” Gibbs said.
According to the CBO, among the households that will be hit with the AMT this year under current law include the following: 3 percent are households making less than $50,000 a year; 35 percent are household making between $50,000 and $100,000 per years; 47 percent are households making between $100,000 and $200,000 per year; and 14 percent are households making between $200,000 and $500,000 per year.
“Because of the particular tax preferences and exemptions disallowed under the AMT, that tax structure is more likely to affect married couples, large families, and taxpayers in states with high state and local taxes,” according to the CBO.
http://www.cnsnews.com/news/article/obama-wants-congress-halt-amt-tax-hike-mNovember 28, 2010 - Taxes, budget and jobless benefits - Congress at the wireThe lame-duck Congress returns on Monday to a daunting agenda of economic issues.
And lawmakers will try to accomplish in a few weeks what has eluded them all year.
Some deadlines, such as extending unemployment insurance and passing a federal budget, will hit this week. On other matters, such as the Bush tax cuts, lawmakers have until year's end.
Bush tax cuts: On Tuesday, President Obama will meet with congressional leaders on both sides of the aisle to tackle the extension of the Bush tax cuts. Just about the only thing both parties agree on is preserving the tax cuts for lower- and middle-income families, which is estimated to cost $3 trillion over a decade. At issue is extending them permanently for the high-income earners, which adds $700 billion to the tab.
President Obama and many Democrats have said they want the tax cuts to expire on family income above $250,000. But the GOP contends that raising taxes now on anyone will imperil the still-fragile economy.
Unemployment benefits: It looks increasingly likely that hundreds of thousands of people will start running out of extended unemployment benefits this week.
Lawmakers are expected to let the Nov. 30 deadline to file for federal unemployment insurance pass without extending it. But that doesn't mean it's the end of the road for federal benefits, which last 73 weeks. Congress may take up the measure during December, either as stand-alone legislation or as part of a bigger bill.
http://money.cnn.com/2010/11/28/news/economy/week_ahead_congress/index.htmNovember 29, 2010 - Democrats Gird for Tax-Relief Battle With the lame-duck Congress reconvening Monday, House Speaker Nancy Pelosi (D., Calif.) may hold a vote mid-week on legislation that would extend the 2001 and 2003 tax cuts only for families with income less than $250,000, while allowing the upper brackets to expire.
But Senate Democrats are still divided over their party's endgame strategy. Some Democrats are ready to accept a temporary extension of all tax cuts. But there is also growing interest among other Democrats in a compromise that would keep them in place only for families with income up to $1 million. Administration officials, for their part, have opposed making upper-income tax cuts permanent, but are widely viewed as being willing to accept an extension of a year or two. Republicans are unified in opposition to allowing the Bush-era tax cuts to lapse for any income group.
http://online.wsj.com/article/SB10001424052748703785704575643070454688564.html12/01/10 - On November 30, President Obama met with House and Senate Leaders at the White House to discuss how to proceed with the Bush-era tax cuts that will sunset at the end of this year if Congress doesn't act.
At a press conference following the meeting, the President said that House and Senate leaders agreed that it was necessary for both parties to reach an agreement on how to move forward on the Bush-era tax cuts before they expire. However, the only "progress" on the issue was the designation of a working group to deal with how to proceed.
http://ria.thomsonreuters.com/taxwatch/default.asp12/1/10 — Bipartisan working group appointed on Bush-era tax cuts; Republicans threaten to hold up other legislation. A "bipartisan" working group has been appointed to grapple with the Bush-era tax cuts that will sunset at the end of this year unless Congress acts. That was followed by an announcement from Senate Minority Leader Mitch McConnell (R-KY) that Republicans would thwart all other legislation until Congress revives the tax cuts for everyone.
http://ria.thomsonreuters.com/taxwatch/default.asp12/2/10 — House passes the "Middle Class Tax Relief Act." On December 2, the House by a vote of 234-188 approved H.R. 4853, the "Middle Class Tax Relief Act of 2010," as amended.
http://ria.thomsonreuters.com/taxwatch/default.asp12/3/10 — Senate to consider various middle-class tax relief proposals. On Dec. 2, Senate Finance Committee Chair Max Baucus (D-MT) introduced legislation (Amdt. 4727) that would permanently cut middle-class tax rates to 10%, 15%, 25%, 28% and 33% for individuals making up to $200,000 and families making up to $250,000. It would also make permanent the 15% rate for capital gains for individuals making up to $200,000 and families making up to $250,000 and permanently extend the marriage penalty relief. The bill would permanently extend the 45% estate tax rate, with an exemption for estates under $3.5 million, indexed for information. In addition, the bill would permanently extend the child tax credit and the making work pay credit.
Following a caucus meeting of Senate Democrats on Dec. 2, Senate Majority Leader Harry Reid (D-NV) announced that the Senate would vote on Saturday, Dec. 4, on two Democratic proposals to provide middle-class tax relief: (1) Baucus's amendment (Amdt. 4727), which includes AMT relief and an unemployment insurance extension; and (2) Senator Charles Schumer's (D-NY) amendment (Amdt. 4728), which includes a tax cut extension for those making up to $1 million, plus several additional items included in the Baucus amendment. However, it is unlikely that either amendment will get the 60 votes necessary for Senate passage, considering that Senate Republicans have said they would not support a bill that did not extend all of the Bush-era tax cuts, see Article #1860.
http://ria.thomsonreuters.com/taxwatch/default.asp12/6/10 — Senate fails to pass "middle class relief;" stage set for a compromise, possibly this week. During a rare Saturday session on Dec. 4, the Senate failed to pass two Democratic initiatives to make permanent—for the middle-class only— the Bush-era tax cuts contained in the 2001 EGTRRA and 2003 JGTRRA. The stage is set, however, for a compromise that will most likely extend the Bush-era tax cuts "temporarily" for everyone.
An amendment offered by Senate Finance Committee Chair Max Baucus (D-MT) to extend the Bush-era tax cuts for everyone except those with incomes above $250,000 (joint filers) or $200,000 (single filers) was defeated by a vote of 53-36. Also defeated by a vote of 53-37 was an amendment offered by Sen. Chuck Schumer (D-NY) to extend the Bush-era tax cuts for everyone except those with incomes above $1 million. Both amendments included a number of other tax provisions.
On Sunday, Dec. 5, Senate Majority Whip Dick Durbin (D-IL) said that he expects tax negotiators will reach an agreement on a bill that will provide a temporary extension of all tax brackets. Also on Sunday, Sen. Jon Kyl (R-AZ), a negotiator on the tax bill, said that Republicans would agree to an extension of unemployment benefits as part of a deal on taxes. Tax negotiations are expected to resume on Dec. 6. Senate Majority Leader Harry Reid (D-NV) has said that he hoped to have an agreement on tax issues by Wednesday, Dec. 8.
12/7/10 — President announces "framework for a bipartisan agreement" on extending Bush-era tax cuts. Late on Dec. 6, President Obama announced that the Administration and the Republicans had arrived at a "framework for a bipartisan agreement" that would extend the Bush-era tax cuts and give workers a 2% reduction in Social Security tax for 2011. How this agreement will be received by Congressional Democrats is uncertain at this time.
http://ria.thomsonreuters.com/taxwatch/default.asp12/8/10 — "Senate first" strategy for "bipartisan" agreement on extending Bush-era tax cuts. On December 8, Senate Majority Leader Harry Reid D-NV) said that the Senate may take up the "bipartisan" agreement to extend the Bush-era income tax cuts for all taxpayers before the weekend. "It's further along than most people think," Reid said. "I don't think there is a great more to be done on that."
http://ria.thomsonreuters.com/taxwatch/default.asp12/09/2010 - House Democrats vow to block tax measureAs the Senate steamed toward a Monday afternoon vote on the far-reaching package, House Democrats were in open revolt. Amid chants of "Just say no," they agreed overwhelmingly during a private meeting Thursday to block the measure from going to the House floor, a symbolic move that underscored the depth of their anger.
Later, House Democratic sources said several options were under discussion, including an amendment to strengthen the inheritance tax provisions. By changing the underlying terms of the deal, however, such an effort could imperil the bill in the Senate, raising the risk that lawmakers could leave town without extending a host of tax provisions that are set to expire on New Year's Eve - hitting virtually every U.S. family with an immediate tax increase.
"House Democrats share the president's commitment to providing the middle class with a tax cut to grow the economy and create jobs" but "reject the Senate Republican tax provisions as currently written," House Speaker Nancy Pelosi (D-Calif.) said in a statement. "We will continue discussions with the president and our Democratic and Republican colleagues in the days ahead to improve the proposal before it comes to the House floor for a vote."
http://www.washingtonpost.com/wp-dyn/content/article/2010/12/09/AR2010120906439.html12/09/2010 - Democrats block tax bill House Democrats have blocked Barack Obama’s tax cuts agreement with Congressional Republicans, to which Harry Reid is reportedly intending to attach his poker bill.
According to US media reports, Democrats are angry that the deal Obama struck on Monday is too generous to wealthy Americans by extending tax rates for the top two tiers of earners, and are demanding changes.
http://www.egrmagazine.com/news/610227/democrats-block-tax-bill.thtml THIS IS ALL THAT $*#(%@ ARROGANT, POMPOUS OBAMA'S FAULT!
NOTHING TO DO HERE WITH REPUBLICANS, SCARED DEMOCRATS, OR A FUCKED UP MEDIA....
ONLY ONE MAN TO CALL NAMES!
Aren't we smart, informed and brave!
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