Repost: MIDDLE-CLASS TAX CUT SOLUTION:

[Toucano]

I'm reposting this idea that I posted last month.

I think the situation for Obama is sufficiently negative now, that any concern about the risks my proposal poses to his re-election can be disregarded. I truly think he will not be re-elected if he allows an extension of the millionaire's bonus tax cut.

The Bush-era tax cuts will expire at midnight, 31st of December if no action is taken.

Take no action. Let nothing come up for a vote and let ALL the tax cuts expire.

As GHW Bush did in 1992, Obama can order the IRS to adjust the employer withholding tables down, so middle class taxpayers have more money in their weekly check, effectively extending the middle class tax breaks.

This gives you 12 months to blast the Republicans on the issue before the wage earners have to file their 2011 returns - which would cause many of them to owe money or get no refund.

A lot can happen in 12 months. Meanwhile, middle class taxpayers have a bit of relief and will dump that money into the economy. Stimulus and relief in one shot.

It's a hail Mary pass of a flaming, toxic ball of political shit right into the laps of Republicans.

If the Republicans can't be persuaded in those 12 months, your hands are CLEAN because you fought to put money in workers' paychecks and the Republicans took it away.

Compromise and extension of the tax cuts are WORST option available to you.

[Vincardog]

1. Compromise and extension of the tax cuts are WORST option available to you.

[BadgerKid]

2. Seems reasonable to advance tax refunds.

As a slight aside:

Isn't it the case that it's better to have to owe a little bit of taxes at the end of the year rather than receive a huge refund? My reasoning is that refunds have to be claimed as income if you're itemizing deductions. While I haven't had to worry about that, I've wondered if it plays out in the real world.

[Toucano]

3. I'm sure you're probably right.

I know many people who consider their withholding a kind of "forced" savings account.

They depend on the refund to give them money in a lump sum.