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Posts Tagged ‘Bush Tax Cuts’

Employers Getting Ready For Tax Table Time Machine, Politicians To Be In More Hot Water

October 28, 2010

Employers in the U.S. are starting to warn their workers to prepare for slimmer paychecks if Congress fails to vote on an extension of Bush-era tax cuts.

“I’ve been doing payroll for probably close to 30 years now, and never have we seen something like this where it gets that down to the wire,” said Dennis Danilewicz, who manages payroll services for about 14,000 employees at New York University’s Langone Medical Center. “That’s what’s got a lot of people nervous. All we can do is start preparing communications with a couple of different scenarios.”

Lawmakers won’t start debating whether to extend the cuts, which expire Dec. 31, until after the Nov. 2 elections. Because it takes weeks to prepare withholding schedules, the Internal Revenue Service will probably have to assume the cuts will expire and direct employers to increase payroll deductions starting Jan. 1, experts say.

For a married couple with an income of $80,000, that would drain an extra $221.48 in withholding from a semi-monthly paycheck, according to calculations by the Tax Institute at H&R Block.

If Congress fails to act, income tax rates will revert to higher levels dating from June 2001. Tax Table Time Machine will put Congress in hot water with working families.

 

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Eye View Business, Dems Push Decision To Extend Tax Cuts Until After Midterm, More Uncertainty For Businesses

September 24, 2010

WASHINGTON—Democrats abandoned plans to vote before Election Day on extending Bush-era tax cuts for the middle class while eliminating them for better-off Americans, spooked by protests from vulnerable incumbents and bleak prospects for passage.

With time running out to plan for 2011, the delay raises uncertainty for small businesses and individual taxpayers over their future liabilities. It also sets up a titanic battle over taxes after the election.

If returning lawmakers don’t pass legislation by Dec. 31, the expiration date of the cuts, tax rates would rise not only on income, but also on estates, capital gains and dividends. Important corporate tax credits and relief from the Alternative Minimum Tax also are up for renewal.

Democratic leaders and President Barack Obama made the proposal to extend the middle-class tax breaks a centerpiece of their midterm campaign strategy. They now face the possibility their members are vulnerable to Republican charges that they have failed to prevent taxes from rising for almost everyone.

More uncertainty for business and a vote to be made by pissed off Dems who will lose in November and  will be vacating their offices in January. Poor Turbo Tax will be hitting Costcos later than ever..

 

Eye View Occam’s Razor Moment, Lower Taxes Higher Employing

September 7, 2010

Last year, even as he struggled through the worst of the recession, Chris Upham said revenue at his District-based real estate and construction businesses doubled — allowing him to hire two agents.

But Upham said he hasn’t increased his staff thus far in 2010 and he doesn’t expect to for the remainder of the year.

That’s because his taxes rose sevenfold. And he said he anticipates they’ll increase again if the Bush tax cuts for people earning $250,000 and above expire at the end of the year.

As small businesses try to plot their recovery, attention is turning to what many owners consider burdensome policies — higher taxes, new accounting procedures and health-care mandates. Even as the government tries to help with an array of small-business initiatives, many owners say the intervention is as much a hindrance to hiring as the faltering economy.

Their perceptions are important because the Obama administration is counting on small-business owners like Upham, whose ranks represent more than half the U.S. workforce, to jump-start the economy, much like they did after downturns in the early 1990s and 2001.

“We did well last year, hired two people, but the taxes ate through the income we had,” Upham said.

“It seemed like we were moving up, [and now] consumer confidence is down,” he added. “What I want government to do is not raise taxes — decrease them to allow us extra money for hiring.”

Lower taxes for small businesses will help increase hiring.  Occam’s Razor Moment. Not that complicated…

 

Scientist Agree, Scary Asteroid is Actually Elimination of Bush Tax Cut Bearing Down On US

July 28, 2010

A GIANT asteroid could be on course to hit Earth causing massive devastation, space boffins revealed today.

An international team including NASA experts warned a 560m wide space rock has been discovered heading this way.

If it did hit Earth it would blast a crater several miles wide and could devastate a city the size of London, wreaking death and destruction for hundreds of miles in every direction.

On further inspection it was determined the predicted day of impact was January 1 2011, and the blast would be based on the elimination of the Bush Tax Cuts.

Fed Chairman Bernanke Advises Maintaining Bush Tax Cuts To Get Us Out Of Ditch

July 24, 2010

Federal Reserve Chairman Ben S. Bernanke said extending at least some of the tax cuts set to expire this year would help strengthen a U.S. economy still in need of stimulus and urged offsetting the move with increased revenue or lower spending.

“In the short term I would believe that we ought to maintain a reasonable degree of fiscal support, stimulus for the economy,” Bernanke said yesterday under questioning from the House Financial Services Committee’s senior Republican. “There are many ways to do that. This is one way.

Bernanke says extending Bush’s tax cuts would help with  economic stimulus. The very tax cuts that Bush implemented to shorten the recession he encountered, is recommended for this current recession.

Bernanke claims extending Bush tax cuts will help get us out of the ditch, while  Obama  claims the Bush tax cuts  drove us in the ditch.

Awkward…….