This is the message that the Obama administration is pushing with regards to the Bush Tax Cuts, which are set to expire at the end of this year.
First they said, it was a bad idea to extend them at all; I mean why keep taxes low? Isn’t it true that when you raise taxes, the economy grows? Maybe on liberal fantasy Island, but not here.
Folks, the Bush Tax cuts are set to expire under a “sunset clause” and if you don’t know what that means, I’ll tell you right now…
Any federal law that does not reduce the deficit has to expire via the sunset provision. Granted, that’s understandable and I can definitely see its use. It helped out tremendously with the assault weapons ban that the Clinton Administration signed into law in the 90’s – that is if you’re a gun toting evil conservative like myself.
However, this sunset provision on the Bush tax cut is coming up real fast and as of right now, there’s actually word that the prez is in favor of extending them, but not for everyone!A breakdown of this 2001 law (Wikipedia)
Economic Growth and Tax Relief Reconciliation Act of 2001 generally reduced the rates of individual income taxes:
• A new 10% bracket was created for single filers with taxable income up to $6,000, joint filers up to $12,000, and heads of households up to $10,000.
• The 15% bracket's lower threshold was indexed to the new 10% bracket.
• The 28% bracket would be lowered to 25% by 2006.
• The 31% bracket would be lowered to 28% by 2006.
• The 36% bracket would be lowered to 33% by 2006.
• The 39.6% bracket would be lowered to 35% by 2006.
Fast forward to Tuesday and in the news, one of Obama’s advisors, Jason Furman said that he is in favor of extending the tax cuts to the middle class and lower class but not for the wealthy in America.
Furman said, “There is a concern that you extend those tax cuts for even a year, and that is a way to get a foot in the door ... and make them permanent.”
Oh hells bells, a permanent tax cut. What am I thinking? Damn, I think I’m getting more evil and more conservative each day.
P.S. I want to share with you some information you may not already know… remember when the Obama administration was pushing the health care law? Of course, who doesn’t, but if you remember he said, “it will reduce the deficit”.
Hmmm, nifty little lie to avoid the sunset clause, isn’t it?