January 2011.. Jan 1st tax cuts expire..Jan 3rd, new congress sworn in

[Peacetrain]

Now just sitting here thinking and linking things together.. Lets say for the sake of argument that the republicans squeak out the house.. (We are retaining the senate.. take it to the bank.)

Those Bush tax cuts.. expire January 1st.. that new congress.. sworn in January 3rd.

What is going to happen?

As it is right now, the President and the Democrats have tried to save tax cuts for everyone, including the wealthy right up to 250,000 dollars.. the top 2 % get that tax cut also..

If the lame duck does not get through that 250,000 tax cut for everyone.. we will all ... I mean all.. have to pay higher taxes.. and if the republicans do the NO NO NO again

Well you know what.. that huge tax hike, and I am guessing it will be the largest in our history... will be courtesy of the Republicans..

Amazing isn't it :popcorn:

[vaberella]

1. If it's going to be a lot of republicans like the MSM says---expect Obama vetoing everything. n/t

[Warren Stupidity]

4. expect a very rare veto from Obama. nt.

[vaberella]

10. Republicans haven't pushed any bill as of yet...so I don't know what you mean. n/t

[Warren Stupidity]

12. ? I mean exactly the opposite of what you meant.

[Kdillard]

2. Republicans will find some way to blame Dems and the media will go along

with it. I would put good money on it.

[n2doc]

7. It won't be 'some way', they will just do it

Just like they say Obama 'raised taxes' already.

They live in their own fantasy world and the MSM is happy to try and drag the rest of us down into it.

[Warren Stupidity]

3. The MANDATE cry will start wednesday.

Lame Duck Democrats, many with absolutely NOTHING TO LOSE, will vote to retain tax cuts for billionaires.

[kentuck]

5. I've already heard it.

Even before the election.

[Orangepeel]

6. The House would pass a new bill giving them to everyone. What would the Senate do?

Given that they were the problem in passing a bill that extended them only for those under $250000 last time? They might be able to pass a compromise extending them to those making less than a million.

Democratic Senator Chuck Schumer suggested that in order to reduce deficits, reach a compromise and help the middle class, tax cuts should be extended to everyone with the exception of millionaires, only allowing tax cuts to expire for those making over $1 million per year. Vice President Biden is open to compromise as well, shifting away from the original threshold of $250,000.
http://www.foxbusiness.com/on-air/varney-co/transcript/biden-let039s-make-deal

[Born_A_Truman]

8. Wish I could post entire article ...

http://www.taxfoundation.org/research/show/26062.html

(snipped)

The most likely scenario is what President Obama has outlined in his budget: that the majority of the Bush tax cuts will be kept, but the ones that benefit couples who earn over $250,000 and singles making over $200,000 will either be allowed to revert to their higher, 2001 levels, or they will be raised in some other fashion.

Below, see a selected list of the tax increases that could occur on January 1, 2011. These are only the most well known provisions of the Bush tax cuts that, if allowed to expire, would come to the immediate attention of the nation's taxpayers.

• The two "marriage penalty elimination" provisions will expire, so that:
o The standard deduction for married couples will fall, no longer double what it is for single filers; and
o The ceiling of the 15% bracket for married couples will fall, no longer double what it is for single filers
• The 10% tax bracket will expire, reverting to 15%
• The child tax credit will fall from $1,000 to $500
• The tax rate on long-term capital gains earned by middle- and upper-income people would rise from 15% to 20%
• The tax rate on qualified dividends earned by middle- and upper-income people would rise from 15% to ordinary wage tax rates
• The 25% tax rate would rise to 28%
• The 28% rate would rise to 31%
• The 33% rate would rise to 36%
• The 35% rate would rise to 39.6%
• The PEP and Pease provisions would be restored, rescinding from high-income people the value of some exemptions and deductions
• The estate tax would be restored with an exemption level of $1 million and rates that top out at 55%

The plan outlined in the Obama administration's budget is to allow only one of those 12 provisions to revert exactly to what it was in early 2001:
• The top tax rate will revert from 35% to 39.6%
Five of those dozen major provisions will change, but they won't go back to exactly what they were in 2001:
• Estate tax law will revert to 2009 instead of 2001: exemption of $3.5 million and top rate of 45%
• Rate on long-term capital gains will revert to 2001 law (rate of 20%) but only for couples with over $250,000 in AGI the year the gain is realized ($200K threshold for singles)
• Dividends will be taxed just like long-term capital gains
• The 33% tax rate will revert to 2001 law (rate of 36%) but the income threshold where that bracket starts will shift up to $250,000 in taxable income (couples) and $200,000 for singles
• The PEP and Pease provisions will be restored, rescinding from high-income people the value of some exemptions and deductions, but the income threshold where they start to pay more will shift up to $250,000 in taxable income (couples) and $200,000 for singles

See the complete roster at the link.

[kentuck]

9. The potential to be a very interesting lame duck session...

I think the Democrats should stand their ground and not give in to a taxcut for the wealthy when they are sitting on almost $2 trillion dollars as we speak. They don't need money from a taxcut.

[Clio the Leo]

11. There will be an extension on all of the cuts...

.... for at least two years.