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Originally Posted by COramprat  So what is the actual dollar amount attached to those over $250,000 a year? I don't see it as 50%. Most people are getting worked up over nothing.
By cutting capital gains on small business it looks like the benefit outweighs the tax increace...however minute it is.
I also don't see where giving back tax cuts Bush allowed for the wealthy as being a sign of a socialist agenda. |
raising taxes isnt socicalism, BUT what obamas plan does is this;
lets say that you made a small enough wage that you dont have any tax liability at the end of the year. now lets say that you had $1000 in fica taxes taken out of your paycheck during the year. when you do your tax return you would be getting that money back from the government since your tax liability was zero. now lets say obama puts his tax plan in place, remember that some of his tax credits are refundable which means that if you are eligible for say a $500 tax credit, your tax refund at the endof the year would go from the $1000 you would normally get to $1500, and that redistribution is the socialist part of the plan, because that money came from say caballo who made $250k that year, and obama raised his taxes back to pre-bish levels, which means he would pay an additional $7500 in taxes.
on the business end, if obamas plan goes into effect, then the businesses netting $250k would see their tax rate going from 35% to 45% which means that business would pay an additional $25k in taxes at the end of the year. now lets say that business created a full time job, so they would qualify for the $3000 "job creations tax credit". that means that when they did their tax return, they would lower their tax liability about $100 or so. hmmmm, spend $50k or more for the new full time job to get a $100 tasx reduction, yeah thats going to happen.
if on the other hand the rate businesses are taxed on their net income goes from 35% to 25%, that means the business gets to keep an extra $25k of their net income, and they would likely hav eincreased production because they could lower their prices, and that means that they would have to add another full time position.