I'm a little confused, like many Americans I was starting to believe Barack Obama's claims that he would lower the taxes on 95% of Americans, he said it enough times. But now the truth comes out - many of the people would get checks who didn't pay any taxes in the first place. That's ridiculous
Obama has claimed that he would lower taxes on 95% of workers - even though more than 50% of workers don't even pay taxes. What he says is true, but what it really means is that he is reintroducing a massive increase in the welfare state, costing about $30 billion per year. According to the Center for Data Analysis' microsimulation modeling, Obama would increase the number of tax filers who receive a check from government without paying any taxes including payroll taxes - people filing just to receive a welfare check - by about 10 million. Where will the $30 billion per year come from? From those who are paying taxes, of course. And indirectly from all of us, when the economy is dragged down by higher tax rates on businesses.
From
The Foundry - Obama's Poverty TrapThis is no long term solution, to hand out checks to people that didn't pay any taxes in the first place. They can't create jobs, they need the jobs that small businesses would create. Call it old fashioned trickle down economics (that should enrage the liberals) but those who create economic opportunity need less government so they can take the risks it takes to create and innovate.
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I think you might find interest in today's discussion titled "Retroactive Tax Legislation" from the American Bar Association's Tax Listserv, here's a little snapshot. You can browse through the postings to see all the discussions surrounding this topic.
The ListServ's discussion comes from tax professionals from the right and the left, and I have experienced very factual information with very little bias. I believe you are referring to the capital gains tax (please correct me if I am wrong). I feel that the media is touting Democrats will increase the capital gains tax, when in fact they are just voting not to extend the expiration date for the explicitly temporary reduction in the capital gains tax rate passed by the Bush Administration for those in the highest income bracket.
I'm quoting someone else here, but I think it paints a nice picture: "A store has a one-day sale, and everything that used to cost $100 now costs $90. Is it fair to say the next day that the store has increased its prices? Some might just say the sale is over."