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  • Obama Proposed Tax Moves

    by Founder on January 10, 2009

    in Voice of the People

    Let’s take a look at the tax changes that the new president elect will be pushing for. None of these have gone into effect – they must first all pass the scrutiny of Congress. Based on the tremendous amount of spending the new administration is planning , don’t plan on any huge tax cuts by Obama. Tax revenues are already dwindling because of the massive amount of jobs lost so he will be not inclined to further decrease the money flowing into Washington.

    Individuals

    • Retirement - Investment credit up to $500 ($1000 on joint return) would match 50% of dollars put into a retirement account – for those making LESS than a certain income.
    • Taxpayers can also withdraw 15% – up to $10,000 from retirement accounts in 2009 without premature penalty.
    • Suspend rules requiring those 70 1/2 or older to take distributions from their retirement accounts.
    • Mortgages - Universal mortgage credit – 10% of interest paid – capped at $800.Â
    • Higher Education - American Opportunity Tax Credit – 100% of first $4000 paid
    • Child Care - This credit increased to 50% of child care costs Â
    • Estate Taxes - Freeze the Estate Tax exclusion at $3.5 Million with a top rate of 45%.
    • Jobless Pay - Those collecting unemployment will no longer have to pay Income Taxes on that money. This would increase the value of those payments by about 10%.
    • Low Income Workers - More people would qualify for the Earned Income Tax Credit – the “negative income tax” for low income individuals. Â Â
    • Seniors - Income of less than $50,000 pays no Federal Income Tax.Â
    • Deductions - Once your income reaches certain levels, you begin to lose your personal exemptions and part of your itemized deductions. This was supposed to phase out this year but Obama will want to put it back in effect for 2009 and 2010. This is a backdoor way for the government to increase your taxes.Â

    Businesses

    • Job Creation - Businesses that hire employees in the next two years would be given a tax credit of $3000 per new employee. An additional payroll tax credit of $500 would offset the payroll tax on the first $8,100 of earnings.Â
    • Alternative Energy - Will give Alternative Energy Investment tax credits.
    • Social Security – Currently you and your employer EACH pay 6.2% on income up to $102,000. Obama’s proposal would eliminate the cap on incomes above $250,000. This would accelerate the conversion of Social Security from an insurance program to a welfare “wealth transfer program”.

    All of these programs I am sure will be subject to change – depending on the economy and winds of political desire. With the country’s spiraling debt and huge foreign financial obligations don’t bet on any big tax cuts coming your way – in fact – as time marches on the government will want to raise your taxes – to pay for their irresponsible spending binges.

    Plus don’t forget that because of our governments penchant for printing money and spending money they don’t have – INFLATION will be our next tax that will dig deep into the pockets of every tax paying American.

    Based on the direction our government is heading – as our taxes rise and our take home pay desreases – our liberties and freedoms will be sacrificed as well. This will represent tremendous “Taxation without Representation”. We must all stand firm and rise up to voice our DISPLEASURE with what is going on. Join me today and help back the Constitution and let’s put some common sense back into our government.

    www.AmericansForTheConstitution.com

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