Tax cut deal: 51 million lower and middle income households will take home less

[TalkingDog]

http://money.cnn.com/2010/12/15/news/economy/payroll_tax_holiday/index.htm?section=money_latest&utm_source=twitterfeed&utm_medium=twitter

Despite a sweeping tax cut deal that is supposed to keep everyone whole financially, if not better off, 51 million households will face a higher tax bill or a lower refund compared with this year.

snip

The tax legislation that President Obama signed into law on Friday, will for one year reduce workers' Social Security taxes. Workers pay 6.2% on their first $106,800 of wages. The tax cut deal will reduce that to 4.2%.

snip

As a result, 51 million households -- about a third of the total -- will be out an average of $210 compared with this year, according to the nonpartisan Tax Policy Center.

"Nothing else in the compromise tax agreement compensates for those losses," Tax Policy Center senior fellow Roberton Williams wrote in the blog Tax Vox.

Stick a fork in me. I AM DONE! :grr:

[Better Believe It]

1. Yes, but thousands will take home billions! Yippeee!

[nadinbrzezinski]

2. There are a few people who don't believe this

and yes, we are at the point that it does not matter who you vote for, AT THIS POINT. Elections have become a minor place for the struggle. It's moved to the streets and other places...

But some folks will come "correct" you in a minute.

Oh and yes, we are done too.

[pacalo]

19. Or they will "contest" you with stupid questions.

:thumbsup:

[MannyGoldstein]

3. So what. They're not bankers.

So who cares.

[TalkingDog]

4. Aptly put Manny n/t

[MannyGoldstein]

11. Seriously. I'm proud that we have an adult President

and Congress who can perform class triage. Some just can't be saved on this Earth.

God will sort them out in the afterlife.

[howaboutme]

15. Yes but the rich who got the tax cuts are bankers

Those on Wall Street who will benefit the most from Obama's tax cut were the same bankers who made billions in ill-gotten compensation, then did extreme economic harm to the world, and were subsequently bailed out by Bush and Obama, and now are being rewarded by Obama with tax cuts.

Americans would feel far better about Obama had his first two years been about making the bankers pay the piper, instead of being handed a golden goose.

[TwilightGardener]

5. Reading further on:

"Still better off with deal than without
It's also true, however, that many low- and middle-income families will still be much better off under the compromise package than they would have been without it."

[TwilightGardener]

7. Also:

"The White House offered this example: A single mother in Ohio with two young kids and a $16,900 income will keep the $420 that she's gotten from the Bush tax cuts. On top of that, she will receive another $1,720 in tax relief -- $340 from the payroll tax holiday plus $1,380 from an expanded child tax credit.

Meanwhile, an analysis from the liberal Center on Budget and Policy Priorities estimates the tax cut compromise as a whole will keep more than 2 million Americans above the poverty line and reduce the severity of poverty for 18 million more.

And an analysis by the Tax Foundation, a research group that favors lower taxes, found that low-income Americans will also be better off under the tax cut deal than they would have been under a bill passed by House Democrats.

That bill would have extended the Bush tax cuts for households making less than $250,000 but not replaced the expiring Making Work Pay credit."

[sasha031]

9. Oh Joy

Here are the talking points:boring:

[TwilightGardener]

10. It's from the article. I guess facts are mere "talking points" if they don't confirm

your worldview.

[OhioBlue]

21. talking points????

my goodness - the statement that people making less than $20k will pay more in taxes next year than this year is the talking point. Can't you at least look at the facts and intellectually understand that this is ONLY because the Obama "making work pay" tax credit that was part of the stimulus - was not extended? If Obama hadn't included the making work pay tax credit in the stimulus than this wouldn't be true.

People are pissed at the Pres for giving more in tax cuts last year, but also pissed that he cut a deal to keep their taxes lower next year... it makes my head spin. I truly think people just dig for things to get pissed at him over.

[Desertrose]

20. "Tax holiday"...ummm....holidays are't free....

Someone always has to pay for them.

[bluerum]

6. How does that increase their taxes? An extra 2% of taxable income taxed at 30%?

That is about $300 on $50k of taxable income.

Leaves them with $700 that would have gone towards their retirement but they will now probably piss away on groceries, heating and gas.

[sasha031]

8. yes when ever this is brought up, it is challenged by taking points

it's disgusting, I take my hat off to some of the members of the House that tries to stop this charade.

O will simply say we all have to sacrifice.

[subterranean]

13. O yes, he will. I would bet he'll be using that phrase often next year.

Starting in the State of the Union address.

[sasha031]

18. shared sacrifice

[pnwmom]

12. Compared with this year only, because the one-year stimulus check

of the Make America Work credit was always meant to expire after this year.

But if a bill to restore the tax cuts of 2001 had NOT been passed, then taxes on the lowest level would have risen a full 50% (from 10 - 15%) -- which would have been a much greater increase.

[subterranean]

17. Not really.

The 10% bracket only extends up to $8,375. If it went up to 15%, the maximum increase anyone in that bracket would face is $135. At least two-thirds of their income is tax-free with the standard deduction.

[frazzled]

14. As compared to WHAT?

The bill that the House passed (but the Senate failed to pass) did not contain an extension of Making Work Pay either. Or anything else to help working people. It simply maintained the Bush tax cuts for the middle class and let them expire for the wealthy. The number of people affected by a few hundred dollars on average would be the same had the bill that a lot of people here preferred been passed.

[xchrom]

16. The money lost in the pay roll 'holiday' has to be

Paid from the General fund and we have to borrow
980 billion dollars from some where.

This is a bastard of a deal.

[Sherman A1]

22. I got screwed in the last Obama tax cut and suspect

I will get screwed again in this one.......