Diary

The Democrat Party’s big lie

The Democrat Party has for years decried the Bush Tax Cuts as one of the most egregious acts against the middle class and the working poor. Progressive mouthpieces from Julian Epstein to Representative Anthony Weiner NY (D) have accused former President Bush’s tax cuts of being a benefit for the wealthy and a yoke for the rest of America. On January 1, 2011 those supposedly oppressive tax cuts are set to expire. The tax bill owed by every American will revert to rates that existed under those gloriously wonderful Clinton days. The difference between the tax rates during the Clinton Era and the Bush Era are highlighted below in a chart from the non-partisan Taxfoundation.org.

Comparing Income Taxes under Bill Clinton and George Bush

 

Individual Income Tax Due in 2008,
Bush Law versus Clinton Law

For taxpayers who take the standard deduction and have no children

Taxpayer

Tax That Would Have Been Owed under Clinton-Era Tax Law

Tax Owed under Current Law, with Bush Tax Cuts

Single, income of 30,000

$3,157.50

$2,756.25

Single, income of 50,000

$7,262.50

$6,606.25

Married, income of $50,000

$5,085.00

$4,012.50

Married, income of $60,000

$6,585.00

$5,512.50

Single, income of $75,000

$14,262.50

$12,856.25

Married, income of $75,000

$9,426.50

$7,762.50

Single, income of $125,000*

$29,378.50

$26,472.25

Married, income of $125,000*

$23,426.50

$19,462.50

*This chart does not take into account the Alternative Minimum Tax

 

As illustrated above, the working poor and middle class actually paid less under G.W. Bush than W.J. Clinton.

 According to the Taxfoundation.org:

“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:
    • The standard deduction for married couples will fall, no longer double what it is for single filers; and
    • 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%”

In an effort to support the largest spending binge in human history, Democrats have embarked on a strategy to divide the American electorate by engaging in class warfare. President Obama and his party have been relentless in their support for tax increases on the wealthy.  By incorrectly insisting that the so-called rich do not pay their “fair share” of the tax burden, Democrats have been able to convince Americans that “targeted” tax increases are justified.  Part of this strategy is to demonize the Bush Tax Cuts as having been a benefit solely for the wealthiest of individuals. The Democrats, with approval from the American electorate to raise taxes on the wealthy, have instead decided to increase taxes on everyone. In the case of healthcare, a tax now extends to every human being in the United States that still takes a breath.  Now, with an election just a few short months away and the economy in shambles, the Democrats are forced to admit their big lie. The Bush Tax Cuts were never a benefit to just the wealthy. They were a benefit to everyone. If these tax cuts are not extended or made permanent,  all working Americans will be forced to pay higher federal taxes.