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Obama Is Not Raising Your Taxes

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The Economic Growth And Tax Relief Reconciliation Act was passed in 2001 and effective January 1, 2002. To push the legislation through, the then-Republican Senate inserted a sunset provision. The Act expires on December 31, 2010. The Byrd Rule (adopted in 1985) allows Senators to block legislation that would significantly increase the federal deficit beyond a ten-year period of time. To avoid the use of the Byrd Rule by Democrats, Republicans agreed to the ten-year sunset provision. The sunset provision also allowed the legislation to adhere to the PAYGO law, which is a “pay as you go” requirement that expenditures be financed with available funds rather than borrowed funds.

Extending the EGTRRA at this time would be in violation of the PAYGO law, as the funds necessary to finance the continuation of tax cuts will require the borrowing of funds since we are currently operating in a deficit. In addition, the only spending cuts Republicans are willing to make at this time are in Social Security Benefits and Medicare. Social Security and Medicare are meant to be funded by the contributions made by the currently employed plus the amounts already accrued. Unfortunately, the Social Security and Medicare piggy bank has been raided over the past ten years to fund the tax breaks enjoyed mainly by the upper 5% of the taxpayers in the US.

I especially love when Glenn Beck expounds to his minions about the wickedness of the capital gains tax. I guarantee the vast majority of his listeners do not pay capital gains tax. A capital gain is the profit you receive when you sell an investment. The investment can be stocks, bonds, property, art work, anything that is sold for more than the amount you paid for it. Some people ask: Why should I pay tax on this money? Well, when a person works at his job, he is investing his talent, time, body, energy, and receiving a paycheck. This person is taxed on the earnings he receives for his efforts. If an artist paints a painting and sells it, he pays tax on the proceeds from the sale. If a musician writes a song, he pays tax on the royalties. If, instead of effort a person uses money, the same should apply.

What is particularly upsetting about this issue is how the Republicans are using it as a way to manipulate their followers, making them feel this is something that will affect them all intimately. Logic dictates that if the majority of the people do not have jobs and a disposable income to spend on goods, then business will suffer. Business does not suffer if the incredibly wealthy have to pay 3% more in income tax annually.

Obama is not raising the taxes. EGTRRA expires on December 31, 2010 because the legislation was written that way in 2001. George W. Bush was president then, and I’m not blaming him for this. It’s certainly not his fault. But I do blame the members of Congress who were there in 2001 crafting this act and who today seem to have a case of selective amnesia.

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About dharma55

  • kiwiridi

    Oooooooh Boooga Booga. George Bush. Ooooooh. My taxes go up. Obama is President. Obama raised my taxes… This method is kind of simple, but I notice the Democratic followers (assume that means members?) use this method to give Clinton credit for a miracle economy achieved by his brilliant talents at blowing on a saxaphone and sexing on the blowaphone, or something like that.

  • kiwiridi

    BTW, never heard of author-type person. I’d never read this if it weren’t linked on breitbart. So once again, thank a conservative for your job.

    Work Hard. Be Happy. It Annoys the Liberals.

  • Glenn Contrarian

    kiwiridi –

    I’m a strong Liberal – and I wish Obama WOULD raise taxes.

    Why? Ask yourself when America’s economy was strongest. Then look back at what our tax rates were then (even under a Republican president). Then get back to us and tell us how horrible and unAmerican we are.

  • http://jeanniedanna.wordpress.com/ jeannie danna

    Dharma55,

    This information should get national attention!

    the Social Security and Medicare piggy bank has been raided over the past ten years to fund the tax breaks enjoyed mainly by the upper 5% of the taxpayers in the US.

    Good article.

  • dharma55

    This “author-type person” chooses to write under a pseudonym because she lives in a heavily Republican area. Were her true opinions to be known, she would be ostracised and have difficulty in her line of work.

  • Glenn Contrarian

    dharma55 –

    I can relate – when I go visit my mother and brother in the Mississippi Delta, I can’t safely wear an Obama t-shirt. The blacks wouldn’t mind…but it’s not the blacks I’d have to worry about.

  • Cannonshop

    #5 Oh, so she has the reverse problem that I do-living in a heavily Left-Democrat state, working at a Union job, and being…well, not a Left-Democrat.

    You really haven’t lived until some Progressive Vanguard’s bashed your windshield in and vandalized your place because of a stupid yard-sign.

  • dharma55

    Cannonshop, I can empathize with you. You have every right to express yourself and they shouldn’t destroy your property because you choose to have a yard sign. I don’t put yard signs out for that very reason. Isn’t it a sad state of affairs when we don’t have the freedom to put a sign in our yard? Both sides are at fault. What I would like to see are the people on either side who have common sense get together to solve issues, not the hot-heads we have trying to stir things up these days. And there are real people out there. We have to speak up and we have to take back our country.