Also Wondering another Tax Question

iVillage Member
Registered: 10-25-2005
Also Wondering another Tax Question
9
Tue, 10-14-2008 - 9:21pm

Some of Bush's tax cuts are to expire in the next 2 year. How will that effect Obama's tax cuts or even McCains? Won't that make taxes still go up for everyone? I am so confused.

The central provisions of these landmark tax bills are scheduled to expire over the next five years, which means that taxes will rise dramatically for most taxpayers. Between now and January 1, 2011 (five short years away),
Tax rates will rise substantially in each tax bracket, some by 450 basis points;
Taxes on capital gains will increase, also beginning on January 1, 2009; and
Taxes on dividends will increase beginning on January 1, 2009;
Federal death taxes will come back to life in 2011, after fading down to nothing in 2010.
Married taxpayers will see the marriage penalty return;
Taxpayers with children will lose 50 percent of their child tax credits;
Low-income taxpayers will see the 10-percent tax bracket disappear, and they will have to pay taxes at the 15-percent rate;

http://www.clipmarks.com/clipmark/4BE0ADD6-8EB5-4671-A838-09E0F4DD520A/




Edited 10/14/2008 9:56 pm ET by iluvmy3sons2005
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iVillage Member
Registered: 05-23-2005
Tue, 10-14-2008 - 9:38pm
I hope someone can answer this, as I've been worrying over this too. Sen McCain has said he will keep the Bush tax cuts, and Senator Obama has said he will let them expire. Losing the additional child tax credit will result in a federal tax increase for our family of approx 33%. Based on our income, I thought I was definately in the 95% of the population that would not see higher taxes with Sen Obamas plan, but not if the Bush cuts expire. I'm hoping someone can answer this, but the last time I asked, it didn't get any responses. I know there are some very knowledgable Obama supporters here who know his platform inside and out, so maybe they will chime in and put my mind to rest.
iVillage Member
Registered: 10-25-2005
Tue, 10-14-2008 - 9:45pm
I am glad I am not the only worrying about it. It might be only a year that everyone sees a tax cut then everyone's taxes could increase.

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Baby Slings at Nurtured Family
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iVillage Member
Registered: 07-16-2008
Tue, 10-14-2008 - 9:51pm

I'm worried about it also, especially in light of Obama saying he may not let them expire if we're in a recession.

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iVillage Member
Registered: 08-25-2008
Tue, 10-14-2008 - 10:38pm
personally, I'm moving all the taxable income I can into this year.
iVillage Member
Registered: 05-06-2007
Tue, 10-14-2008 - 10:49pm

Here's some information that may help answer your questions.


http://www.nytimes.com/2008/09/30/us/politics/30check.html?ex=1380427200&en=bc9e04d48fc3ecb4&ei=5124&partner=digg&exprod=digg


In his presidential platform, Mr. Obama has also proposed several measures to mitigate the impact of letting the Bush tax cuts expire. Under his plan, only individuals making $200,000 or more and families earning more than $250,000 a year, accounting for less than 2 percent of the population, would pay additional taxes, and more than 90 percent of the population would receive a tax break of some sort.


You should also check out Obama's tax plan which can explain his ideas better than I can. :-)


http://www.barackobama.com/pdf/taxes/Factsheet_Tax_Plan_FINAL.pdf


Chrissy
mom to Aidan 8/21/03
Grayson Blaine 12/30/07

iVillage Member
Registered: 10-25-2005
Tue, 10-14-2008 - 11:03pm
Thanks for the information but it still does not say what will happen when the Bush Tax Cut expires. I need to read more in depth on his website, but I am trying to figure if the taxes will balance out what is already in effect after the tax cuts expire or taxes will go up. Because the per child will go to 500 dollars and the marriage penalty will be back for certain people that are middle class. How will this effect his plan? So far I do not see anything on his website on how this will work after that tax cut expire. Is he talking now of after the tax cuts expire he has not stated that.

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Baby Slings at Nurtured Family
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iVillage Member
Registered: 05-23-2005
Tue, 10-14-2008 - 11:23pm
Thank YOU! This is exactly what I have been looking for. Now I can sit down and compare the numbers.
iVillage Member
Registered: 05-06-2007
Tue, 10-14-2008 - 11:25pm

As far as I've read and heard in interviews, Obama would delay rescinding the Bush tax cuts for the wealthy if the country is in a recession. However, he has no plans to extend the Bush tax cuts beyond 2010. Instead, he wants to push for his promised tax cuts for the middle class. That was what he said in a September interview on ABC's "This Week". Again, I really think you need to read his tax plan to understand what he wants to do. But obviously the economy is going to have an impact on either candidate's priorities once in office.


Chrissy
mom to Aidan 8/21/03
Grayson Blaine 12/30/07

iVillage Member
Registered: 05-06-2007
Tue, 10-14-2008 - 11:38pm

Here's some other information that you may find useful.


http://www.barackobama.com/pdf/taxes/Tax_Plan_Comparison_FINAL.pdf

Chrissy
mom to Aidan 8/21/03
Grayson Blaine 12/30/07