Roseville, CA — Taxmaggedon is at hand, that is for people whose incomes exceed $200,000 annually, come January 1st 2013. With a looming $494 billion tax increase on the horizon, everyone feels like the apocalypse is coming. But for for the first $250,000 of taxable income, the president is trying to push lawmakers to extend the Bush-era tax cuts for one more year to soften the blow to people who are already struggling to keep up with their finances.
Of course, the Republicans are vehemently refusing to pass such a mandate. Bush may have been a Republican but his political party is not backing up a mandate that is being re-used by a Democrat. But President Obama is not backing up on his agenda and is trying to woe lawmakers into passing a bill that will cushion the blow of the new taxes for low income families and even promised to sign it immediately. The Republicans argue that passing such tax measures/cuts should not just be available to a specific income group but should also be available to everyone else.
The Republicans may sound fair but if you think about the 7,000 millionaires who did not pay their taxes in 2011 because they were able to work around the rules and had taken advantage of every loophole in the system; hmmm, these constipated right wingers seem to be gunning for their own agendas of saving their own skin from being taxed or they are under some rich person’s payroll to lobby tax cuts for the rich.
The Bush era implemented tax measures and cuts to favor the rich but they had to present it in a way that would not be so obvious so they also implemented tax cuts for low income earners (the latter being actually a good measure). President Obama is actually gunning for “tax fairness” and fairness does not mean when you do something to one group, you automatically have to also adjust the mandates you gave for the other group. It does not work that way.
The reason why the taxmaggedon is being implemented is to close out these loopholes being exploited by the few. Imagine 7000 millionaires not paying their taxes, that is the reason why the country is unable to fix its deficit. But the government’s adversaries are having a hard time accepting that people whose first $250,000 of taxable income deserve to be cut some slack and be given tax cuts. Why must the regular people bear all the burden of fixing the deficit when there are fat cows that should be harvested?
According to the Republicans, the extension of the tax cuts and low federal funding could throw back the economy into recession and might jeopardize the chances for the creation of new jobs. But both parties do have their points.
In reality only 2.5 percent of small businesses will be impacted by the tax hikes but that 2.5 percent is made up of 894,000 small businesses and that is not a small number that will be affected by the increase in taxes.
Hopefully, Obama will be able to convince the 2 political wings to arrive at a compromise even if the Republicans control the Congress and the Democrats control the Senate.