Tuesday, April 28, 2009

Obama's Middle Class Tax Cut Quietly Being Phased Out

Congressional Democrats Reach Agreement on Budget Pact Endorsing Obama Goals

WASHINGTON -- Congressional Democrats sealed an agreement Monday night on a budget plan that would help President Obama overhaul the health care system but allows his signature tax cut for most workers to expire after next year.

Senate Budget Committee Chairman Kent Conrad, D-N.D., announced the agreement and key details in a statement.

Most importantly, the congressional budget plan would prevent Senate Republicans from delaying or blocking Obama's plan to vastly expand government-subsidized health care when it advances this fall.

The $3.5 trillion plan for the budget year starting Oct. 1 embraces several of Obama's key goals besides health care reform, including funds for domestic programs and clean energy, and a tax increase for individuals making more than $200,000 a year or couples making more than $250,000.

But the plan would allow Obama's signature $400 tax cut for most workers and $800 for couples to expire at the end of next year. Even after squeezing the defense and war budgets to levels that are probably unrealistic, the plan would cause a deficit of $523 billion in five years.

Continue reading:

Can we all give a collective "I told you so"? Most of us were saying back in the campaign that he could not spend the money he wanted to spend and give the tax cut he promised.

Now keep in mind, this will be a tax increase. When you take away a tax cut you are, in effect, raising taxes.

The only problem now is my wife and I are going to have to adjust our budget when we lose that $13 a week. We had come to rely on that money. Something will have to go.


EatYourOkra said...

Doesn't surprise me at all. It was a ploy to get votes by buttering up the biggest class of voters. Didn't matter if he could make good on his word. He just needed to get in office.

Brooke said...

My work told us that if you are married and you both have a job, that money will also have to be paid back, as it is intended for only one in a household. They advised us to adjust our witholding accordingly.

Flavor Country said...

No surprise either. In order to get health care in order and to get the economy on track I figured it would happen.

I have no problem with a tax increase if reform is done. I will be the biggest critic if taxes go up and things stay the same.

Would you rather keep your tax break and have the health care system stay the same?

Whomever won the election he or Mccain in attempting to fix health care would have to eliminate the tax cuts too.

Promises of tax cuts never sway my vote, because I know they easily can be taken away after they are given.

James Wolfer said...

You could just do what the government does (under both Dems & Repubs): don't cut anythign in your budget. Just borrow from the Chinese.

mksviews said...

Reality is starting to set in ey.

You folks will be exceptionally lucky if your healthcare system does not get far worse than it is at the moment under hussein. You folks already have socialized medicine to an extent and that's a roaring success isn't it. Everywhere in the world where this has been tried, the result is worse healthcare, longer waiting times and poor quality. Here in Australia, the state i live in has spent billions upon billions on the healtcare system to no avail, and the population of this state is around 5 million.

Recently i and some family members had to go into hospital for procedures and we paid out of our own pockets at private hospitals. You see even though we have the glorious healthcare system that we fund through our taxes, the waiting times for non-emergency procedures are a joke and the quality is below standard.

The other thing that people who support this stupidity don't get, either because they're too stupid or don't care, is that you can't have free healthcare, welfare and all that and also defend your borders. See - "Even after squeezing the defense and war budgets to levels that are probably unrealistic" Can't defend the nation if you won't fund the means to do it can you. There is only so much money that you can suck out of the nation through taxes.

And you think this will be all you'll have to hand over to the government, this is just the start folks. The last time i spoke to an American earning good money, they were paying less than 20% in income tax, try around 30-40% in the future folks, that's the sort of rate you have to pay if you want 'free' healthcare.

I remember listening the other night to a tax expert on the radio, he said that in Australia we are working for the government for the first 3 - 4 months of the year. Assume the financial year runs from Jan to Dec. And he said that soon we'll be working for the government till around may. Over in Europe they work for the government till about June and July. That's close to 50% of your income, and that's for all the 'free' services folks.

Health care will not improve under hussein, the masses will scream and hussein will have to take more money from you, trillions upon trillions and i guarantee you that your healthcare will go down the toilet, literally. And what's worse, you will never be able to turn back from it.

Chuck said...

Okra, it's hard to believe that these people actually bought it. Morons

Brooke, hadn't heard this but we're a 1 income family

Flavor, I'm not surprised either. Just another campaign promise by the wayside

James, good point

MK, this is just the first step towards an increase in taxes for the middle class. It was planned all along, Congress will take the heat.

Leslie said...

Good post Chuck. We thinking people knew this was coming all along. Politicians will promise anything in order to get elected. I wonder when the general public will finally realize that.

The old adage: if it sounds too good to be true...it probably is.

I will NEVER understand how people can be so ignorant. Another saying from someone I once knew: Don't you wish ignorance was painful?

DaBlade said...

As soon as Obama is finished with these higher priorities, he will get back to you Chuck. He will take care of your mortgage and your car payment and your grocery bill and whatever you gave up with the $13 tax hike. You just wait. He will take care of us all.

Mustang said...

Those of us with the quite ordinary ability to recognize BS when we hear it expected no less from Barack Hussein Øbama. When you evaluate the Obama presidency's first 100 days, it is impossible to feel confident about the remaining 1,400 days, as reflected in this chronological summary.

Ah, not to worry mate; this is something the American people inflicted upon themselves. Mr. Øbama is rapidly dismantling this nation’s august institutions, and replacing them with socialist pap. My only real frustration is that he appears to remain popular with 70% of those polled within leftist regions of the country. Who could possibly imagine that even leftists are that stupid?

cube said...

I'm not surprised. BO is a liar.