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Obama talks at length about how he will give 95 percent of Middle class america a tax cut, yet by doing nothing he increases your taxes substancially more than the "tax cut" he proposes to give you.
How can that be you ask? Well by letting the Bush tax cuts expire Obama will in effect raise your taxes to pre tax cut levels of 2000.
That wont affect me you say I am not rich only rich people were helped by the Bush tax cut. Now I will be the first to admit that the bush tax cuts of 2001 and 2003 did substancially help the wealthy but you might be surprised to learn just what "goes away" when those tax cuts expire beteen now an 2011. Here is what "goes away" if Obama lets the Bush tax cuts disappear and these affect, yes, the working and middle class!.
Tax rates will rise substantially in each tax bracket, some by 450 basis points
Low-income taxpayers will see the 10-percent tax bracket disappear, and they will have to pay taxes at the 15-percent rate.
Married taxpayers will see the marriage penalty return.
Taxpayers with children will lose 50 percent of their child tax credits.
Taxes on dividends will increase beginning on January 1, 2009.
Taxes on capital gains will increase, also beginning on January 1, 2009; and Federal death taxes will come back to life in 2011, after fading down to nothing in 2010.
So what does all the above REALLY MEAN you ask? Well if you are at an income level where you pay zero tax
File single at 30K a year your taxes go from zero to 15%
If you are a married taxpayer making 60K a year you will see you taxes go up by as much as 19.5 percent.
Married taxpayers making 125,000 Combined will see a over 20 percent increase in taxes.
Dont believe me? Call your accountant or tax preparer and ask them what effect the expiration of the bush tax cuts would have on your tax bill and what you tax rate goes up to if the tax tables go back to 2000. Those of you who are retired and live off capital gains income, you are hurt too under Obama. The very people Obama says he will 'help" the working poor and lower middle class will see their taxes go up to the higher 2000 tax rate.
Obama is absolutely right "He is not RAISING your taxes", he does NOTHING by letting the Bush tax cuts expire and your taxes go up.
The only "Change" will be the change gone from your pocket!
Sources: http://www.snopes.com/politics/taxes/clinton-bush.asp
http://usgovinfo.about.com/cs/taxes/a/bushtaxcuts.htm
