Diary

THE LAME DUCK SESSION -- HUGE TAX INCREASES COMING SOON

Mid Term Election Hopes

As we approach the midterm elections, there is great anticipation that the Republicans will win a significant majority in the House of Representatives and will substantially increase their strength in the Senate.  That will mark a new era in American politics, where we hope the tide of Socialism will start to be rolled back. 

Does anyone remember Barak Obama’s famous quote on the day he clinched the Democrat nomination for President on June 3, 2008.  In a moment of monumental arrogance, he said at that time —this was the moment when the rise of the oceans began to slow and our planet began to heal”.  Let’s hope that on November 3, 2010 Republican leaders can express a sentiment that “this was the day our nation began the long journey back to fiscal stability, free market capitalism and rise of socialism in America began to subside”.

Will the Lame Duck Session of Congress Increase Our Taxes?

No matter how large the Republican win turns out on Nov. 2, there is still the dreaded lame duck session of Congress, which will commence shortly after the election is over.  Unfortunately, the session will be run by the same Democrats who have legislated or voted for almost a trillion dollars of TARP, an $869 Billion stimulus package, a huge Cap and Trader bill, the much maligned and costly Obamacare bill, the 50 billion dollar public union payback bill among other big government spending and control bills.

Every losing Democrat will be in a position to pass the liberal and socialist legislation that they were afraid to tackle before the elections, for fear of losing even more seats.  The big question is – will current sitting Democrats listen to the voters or be driven by their own far left agenda to pass those spending, tax and other bills that have been on their list for a long time.

One of the most serious items that will be taken up by the lame duck Congress is the subject of taxes.  Will they choose to maintain the current tax rates and laws by extending the Bush tax cuts either temporarily or permanently?  Or, will they modify the Bush tax cuts and implement their class warfare ideas of increasing “taxes for the rich”.  A third option, which is possible, is to do nothing by allowing the Bush tax cuts to expire, and increase substantially everyone’s taxes.

These new tax increases will be massive.  To find out just how bad these will be, an article written by Americans for Tax Reform (ATR) spells out the huge tax increases we will all face, starting in January 1, 2011.  Some of the highlights of this article are:

Personal Tax Rates will rise:

The 10% bracket rises to 15%

– The 25% bracket rises to 28%

– The 28% bracket rises to 31%

– The 33% bracket rises to 36%

– The 35% bracket rises to 39.6%

Other tax rates that will rise include the ‘marriage penalty’, the death tax and more taxes on savers and investors.  You can check out the ATR article “100 Days to Go Until
The Largest Tax Hikes in History
”.

What Can be Done about the Lame Duck Session of Congress

I have no idea on how we can stop Democrats for performing massive mischief during the Lame Duck session.  Many losing Democrats will be very bitter about losing and may be willing to do Obama’s bidding.  They will be further motivated by offers of jobs in the current administration.  Other Democrats may have some degree of patriotism and decency and actually listen to the voting public and some may even harbor hopes of running for office again at a future date.  And other Democrats may not even show up. 

It’s very hard to predict what will happen.  It’s also very difficult to suggest a course of action for Republicans.  Possibly, the minority Republicans participating in the Lame Duck session may be able to impress upon the majority Democrats that life will become very difficult for them after Jan. 2, 2011 if they do not act in a fair and responsible manner.  We can only hope!