Every single person working in the United States, regardless of income level, will be bringing home less in their paychecks this January as Federal Taxes increase this January. Both the House and the Senate, by voice vote, passed a motion to take a break in order to return to their home districts and states to campaign for re-election – it is what was not taken up for a vote in either chamber of the Congress that will impact every single taxpayer – the Bush Tax Cuts. Cutting through the rhetoric for a moment, the Bush Tax cuts known primarily as a rallying cry for the Democrats to insure that the “wealthy” fork over more of their income, actually was an across the board tax cut – meaning people making minimum wage received an increase in their income when the Bush Tax Cuts were implemented. Therefore, letting these tax cuts expire, is a reverse tax increase.
How much will your income be reduced depends upon several factors; married couples with children will feel the impact more than someone who is single with no children, however all income will be reduced by at least 5%. To find out how much your taxes will increase,
The Tax Foundation has a
calculator at mytaxburdon.org that will give you a clear picture of the immediate impact through payroll deductions. Also included in the Bush Tax Cuts were a reduction in the marriage penalty and a increase in the child tax credit – those will no longer be available. It may seem like a pittance, at first, that $5, $10, or $50 missing from a weekly check, but consider that in this economy, it means struggling just a bit harder to make ends meet. Also, those who look forward to a nice refund from the I.R.S. at tax time, may find no refund at all, once those standard child and marriage deductions are no longer available. In fact, some middle class families may find themselves writing checks to the Federal Government.
Someone has to foot the bill, and that someone is you – regardless of how much you earn. Every single member of the House of Representatives (your congressional representative) and Senator knew that allowing the Bush Tax cuts to expire would mean your income would decrease, yet the people we hired decided their income was more important – they needed to get back to their districts to campaign. Was it each and every single Congressional Representative or Senator – hardly. In fact, the House of Representatives passed the motion to adjourn and not vote on the Bush Tax Cuts by one vote – the tie breaker -
Speaker of the House, Nancy Pelosi.That means that thirty nine Democrats joined all Congressional Republicans in voting to stay in session and vote on your income. Those Democrats who joined all Republicans and
voted no are:
AL- Bright
AZ- Giffords
AZ- Kirkpatrick
AZ- Mitchell
CA- McNerney
CO- Markey
GA- Marshall
ID- Minnick
IL- Bean
IL- Foster
IN- Donnelly
IN- Ellsworth
LA- MeLancon
MD- Kratovil
ME- Michaud
MI- Peters
MI- Schauer
MS- Childers
MS- Taylor
NC- McIntyre
NC- Shuler
NH- Arcuri
NJ- Adler
NM- Heinrich
NV- Titus
NY- Bishop
NY- McMahon
OH- Driehaus
OH- Kilroy
OH- Space
PA- Altmire
PA- Carney
PA- Murphy
PA- Perriello
PA- Sestak
SD- Sandlin
TX- Edwards
VA- Connolly
VA- Nye
If your Democrat Congressman or Congresswoman is not on the above list, they are responsible for increasing your income.
The plan, to save one’s political future and hide, may have miscalculated the fact that voters would eventually find out that they were directly responsible for one of the largest tax hikes and job killers in U.S. History. On jobs and a government check, it does not take a rocket scientist to understand that Corporations and Small Businesses who are left standing and are necessary to insure that those who collect government checks, whether through entitlement programs or payroll are directly related. Corporations have been fleeing the United States (or states and Commonwealths within the United States) for years to dodge increasing tax hikes, the Bush Tax Cuts ensured that these employers would stick around and hire people. When it became evident that many of the programs that passed under the Obama administration would involve a round of new taxes and regulations to these corporations, they were concerned enough to stop hiring. Google hiring freeze for the heck of it, and one will reference after reference in news articles nationwide of continued hiring freezes. When taxes go up for corporations, they have less money to spend on employees, which includes hiring new employees as well as paying out benefits to current employees. Those in the northeast, where manufacturing was a staple prior to the Civil War, watched factories and corporations flee to the “sun belt” (Southern U.S.) during tax hikes under the Carter administration – what’s left may soon be leaving for climates where there are fewer taxes and, no kidding, no labor unions with ridiculous pensions and hourly wages (see Auto Workers).
Therefore, there will be fewer jobs, and fewer corporations, meaning a significant drop in revenue to the Federal Government (and State Governments who rely on your job and the corporation that hired you) which will mean the Administration will have to try and borrow more money to cover those entitlement programs, from welfare to extended unemployment benefits. What happens when the government simply runs out of enough tax payers and cannot borrow another red cent to meet these obligations? The aforementioned scenario sounds a bit far-fetched; however, when one considers what has taken place over time, the potential exists. Surely, Nancy Pelosi and those Democrats who voted to head home to campaign were smart enough to know that the above scenario is possible.
One has to examine the motives of those who vote against deeply entrenched, long-term Congressional Representatives and Senators with a new focus after yesterday’s vote. Those that put their power and position over the livelihood of the lowest of their constituents, are not preferable to the unknown Republican, Tea Party, Green Party or Independent running against an incumbent who has, in many cases, been in office for decades.
Side Note: Nancy Pelosi, who is up for reelection herself, is facing one John Dennis
www.johndennis2010.com, those living in the San Francisco 8th district may want to consider an alternative to Ms. Pelosi.
