created by: American | Jul 20, 2010

Berkshire Eagle

26 votes

Are Higher Taxes Good for Economy

Click on an option to vote

  • yes
  • no
  • who knows
  • yes gov deficits spending good
  • yes tax high earners give to poor
  • no, smaller gov lower taxes good
Comments
1 - 14 of 14 Comments Last updated Jul 23, 2010
American

Bennington, VT

|
Report Abuse
|
Judge it!
|
#1
Jul 20, 2010
 
Higher Taxes Good for Economy
http://www.youtube.com/watch...
Harvard Economist Richard Parker argues higher taxes are good for the economy as long as they are targeted at high-income earners.
Another View

Albany, NY

|
Report Abuse
|
Judge it!
|
#2
Jul 20, 2010
 
American wrote:
Higher Taxes Good for Economy
http://www.youtube.com/watch...
Harvard Economist Richard Parker argues higher taxes are good for the economy as long as they are targeted at high-income earners.
You are correct. The ultra wealthy are certainly not paying their fair share of the tax burden, now, especially with the Bush tax cuts for the wealthy. Trickle Down Economics DOES NOT WORK. We saw that in the Reagan administration.
When Eisenhower was president, and he was a Republican, the tax rate for the very wealthiest American was 90%, and they still prospered, and the middle class was strong.
Without a strong middle class this country will become a third world country, with a most of the wealth in the hands of a very few at the top and the rest of the country struggling to make ends meet.
What we have now is a corporated takeover, as "corporations are now considered to be people," along with a Gilded Age mentality on the part of those make over $300,000. a year
Adam Smith

AOL

|
Report Abuse
|
Judge it!
|
#3
Jul 20, 2010
 
Another View wrote:
<quoted text>
You are correct. The ultra wealthy are certainly not paying their fair share of the tax burden, now, especially with the Bush tax cuts for the wealthy. Trickle Down Economics DOES NOT WORK. We saw that in the Reagan administration.
When Eisenhower was president, and he was a Republican, the tax rate for the very wealthiest American was 90%, and they still prospered, and the middle class was strong.
Without a strong middle class this country will become a third world country, with a most of the wealth in the hands of a very few at the top and the rest of the country struggling to make ends meet.
What we have now is a corporated takeover, as "corporations are now considered to be people," along with a Gilded Age mentality on the part of those make over $300,000. a year
So how come the Gilded Age marked the period when the US became the largest GDP in the world, while a century of Progressivism (aka socialism) has left us in today's state? If the Eisenhower years were so great, actually there were three recessions, how come Kennedy promised to get us moving again, cut taxes and gave us almost a decade of uninterupted growth? The fact is, the optimal level of government expenditure is about 15-20% of GDP. Below that you're not spending enough on infrastructure, education, law enforcement & defense. Above that, it's just non-productive wealth tranfers that harm the productive classes while subsidizing the non-productive.
Obama Promised

Clifton Park, NY

|
Report Abuse
|
Judge it!
|
#4
Jul 22, 2010
 
Another View wrote:
<quoted text>
You are correct. The ultra wealthy are certainly not paying their fair share of the tax burden, now, especially with the Bush tax cuts for the wealthy. Trickle Down Economics DOES NOT WORK. We saw that in the Reagan administration.
When Eisenhower was president, and he was a Republican, the tax rate for the very wealthiest American was 90%, and they still prospered, and the middle class was strong.
Without a strong middle class this country will become a third world country, with a most of the wealth in the hands of a very few at the top and the rest of the country struggling to make ends meet.
What we have now is a corporated takeover, as "corporations are now considered to be people," along with a Gilded Age mentality on the part of those make over $300,000. a year
The largest tax hikes in the history of America will take effect. They will hit families and small businesses in three great waves on January 1, 2011:

First Wave: Expiration of 2001 and 2003 Tax Relief

In 2001 and 2003, the GOP Congress enacted several tax cuts for investors, small business owners, and families. These will all expire on January 1, 2011:

Personal income tax rates will rise. The full list of marginal rate hikes is below:

- The 10% bracket rises to an expanded 15%
- The 25% bracket rises to 28%
- The 28% bracket rises to 31%
- The 33% bracket rises to 36%
- The 35% bracket rises to 39.6%

Higher taxes on marriage and family. The “marriage penalty” will return from the first dollar of income. The child tax credit will be cut in half from $1000 to $500 per child. The standard deduction will no longer be doubled for married couples relative to the single level. The dependent care and adoption tax credits will be cut.

The return of the Death Tax. This year, there is no death tax. For those dying on or after January 1 2011, there is a 55 percent top death tax rate on estates over $1 million. A person leaving behind two homes and a retirement account could easily pass along a death tax bill to their loved ones.

Higher tax rates on savers and investors. The capital gains tax will rise from 15 percent this year to 20 percent in 2011. The dividends tax will rise from 15 percent this year to 39.6 percent in 2011. These rates will rise another 3.8 percent in 2013.

Second Wave: Obamacare

There are over twenty new or higher taxes in Obamacare. Several will first go into effect on January 1, 2011. They include:

The “Medicine Cabinet Tax” Thanks to Obamacare, Americans will no longer be able to use health savings account (HSA), flexible spending account (FSA), or health reimbursement (HRA) pre-tax dollars to purchase non-prescription, over-the-counter medicines (except insulin).

The “Special Needs Kids Tax” This provision of Obamacare imposes a cap on flexible spending accounts (FSAs) of $2500 (Currently, there is no federal government limit). There is one group of FSA owners for whom this new cap will be particularly cruel and onerous: parents of special needs children. There are thousands of families with special needs children in the United States, and many of them use FSAs to pay for special needs education. Tuition rates at one leading school that teaches special needs children in Washington, D.C.(National Child Research Center) can easily exceed $14,000 per year. Under tax rules, FSA dollars can be used to pay for this type of special needs education.

The HSA Withdrawal Tax Hike. This provision of Obamacare increases the additional tax on non-medical early withdrawals from an HSA from 10 to 20 percent, disadvantaging them relative to IRAs and other tax-advantaged accounts, which remain at 10 percent.
Obama Promised

Clifton Park, NY

|
Report Abuse
|
Judge it!
|
#5
Jul 22, 2010
 
Third Wave: The Alternative Minimum Tax and Employer Tax Hikes

When Americans prepare to file their tax returns in January of 2011, they’ll be in for a nasty surprise—the AMT won’t be held harmless, and many tax relief provisions will have expired. The major items include:

The AMT will ensnare over 28 million families, up from 4 million last year. According to the left-leaning Tax Policy Center, Congress’ failure to index the AMT will lead to an explosion of AMT taxpaying families—rising from 4 million last year to 28.5 million. These families will have to calculate their tax burdens twice, and pay taxes at the higher level. The AMT was created in 1969 to ensnare a handful of taxpayers.

Small business expensing will be slashed and 50% expensing will disappear. Small businesses can normally expense (rather than slowly-deduct, or “depreciate”) equipment purchases up to $250,000. This will be cut all the way down to $25,000. Larger businesses can expense half of their purchases of equipment. In January of 2011, all of it will have to be “depreciated.”

Taxes will be raised on all types of businesses. There are literally scores of tax hikes on business that will take place. The biggest is the loss of the “research and experimentation tax credit,” but there are many, many others. Combining high marginal tax rates with the loss of this tax relief will cost jobs.

Tax Benefits for Education and Teaching Reduced. The deduction for tuition and fees will not be available. Tax credits for education will be limited. Teachers will no longer be able to deduct classroom expenses. Coverdell Education Savings Accounts will be cut. Employer-provided educational assistance is curtailed. The student loan interest deduction will be disallowed for hundreds of thousands of families.

Charitable Contributions from IRAs no longer allowed. Under current law, a retired person with an IRA can contribute up to $100,000 per year directly to a charity from their IRA. This contribution also counts toward an annual “required minimum distribution.” This ability will no longer be there.
Hummm

Nashua, NH

|
Report Abuse
|
Judge it!
|
#6
Jul 22, 2010
 
But you can still keep your current health care plan ....... uh, no wait.
Adam Smith

Norwich, CT

|
Report Abuse
|
Judge it!
|
#7
Jul 22, 2010
 
Hummm wrote:
But you can still keep your current health care plan ....... uh, no wait.
You're not suggesting the Messiah lied, are you?
Yoga Man

United States

|
Report Abuse
|
Judge it!
|
#8
Jul 22, 2010
 
Adam Smith wrote:
<quoted text>You're not suggesting the Messiah lied, are you?
Mr Smith,

All but a few holdouts admit that Mr Obama constantly lies. We can stand many things in our politicians, but lack of character and base dishonesty are two things we won't. While sad we have a president like this, the good news is he stands no chance in 2012 as the country will want integrity in our next President.

herbal tea and meditation.
Prove me wrong

Albany, NY

|
Report Abuse
|
Judge it!
|
#9
Jul 22, 2010
 
The first step happens in November 2010. The Dims will lose control of both houses of congress. That will be the end of anything "new" from Obama. Then, in Jan 2011, congress will defund the healthcare plan and begin repeal of the tax increases.
It's gonna be quite a show. Barry's ego will explode!
Dim Farkas

Schenectady, NY

|
Report Abuse
|
Judge it!
|
#10
Jul 22, 2010
 
Yoga Man wrote:
<quoted text>
Mr Obama constantly lies..
Come on. I'm a Republican, but you are obviously a "Glenn Beck" nut-hugger

“Everything is local”

Since: Apr 08

Great Barrington, MA

|
Report Abuse
|
Judge it!
|
#11
Jul 22, 2010
 
No country, nation or empire in written history have taxed themselves into prosperity.
Sanity in MA

Southwick, MA

|
Report Abuse
|
Judge it!
|
#12
Jul 23, 2010
 
pat the painter wrote:
No country, nation or empire in written history have taxed themselves into prosperity.
It's certainly evident that reducing taxes did not keep us from a recession nor did reduced taxes on businesses create more jobs. Business just used those savings to move manufacturing jobs offshore to reduce labor costs and make even more money. I say let those lowered taxes lapse and start to pay for all this deficit spending.Big business right now has over 3 trillion dollars which is being held on the sidelines instead of doing more manufacturing and investing.

“Everything is local”

Since: Apr 08

Great Barrington, MA

|
Report Abuse
|
Judge it!
|
#13
Jul 23, 2010
 
Sanity in MA wrote:
<quoted text>
It's certainly evident that reducing taxes did not keep us from a recession nor did reduced taxes on businesses create more jobs. Business just used those savings to move manufacturing jobs offshore to reduce labor costs and make even more money. I say let those lowered taxes lapse and start to pay for all this deficit spending.Big business right now has over 3 trillion dollars which is being held on the sidelines instead of doing more manufacturing and investing.
In the US taxes are seldom really lowered, since when the federal government makes cuts in services, states pick up an extra cost, then in MA right now for example the state has made cuts and cities and town have increased taxes and even in many cases added a meal and lodging tax increase. I am no ecomomist, but can see what the US and a lot of the free world is doing is not working.

When FDR began Social Security the average person died at 62, but people could not collect until 65, today the state allows people to retire at 55 and people live until around 80.

There are ways to cut taxes, and help and at the same time we have to stop helping companies move out of the US and avoid taxes and get cheap labor. Billions of dollars are spent in this country on experts at every field, including the economy, there is no reason why a solution that makes sense and helps everyone can not be found and used.
Bernanke Says

Chatham, NY

|
Report Abuse
|
Judge it!
|
#14
Jul 23, 2010
 
Extending Bush's Tax Cuts Would Maintain Economic Stimulus

http://www.bloomberg.com/news/2010-07-23/bern...

Tell me when this thread is updated: (Registration is not required)

Add to my Tracker Send me an email

Type in your comments below
Name
(appears on your post)
Comments
Characters left: 4000
Type the numbers you see in the image on the right:

Please note by clicking on "Post Comment" you acknowledge that you have read the Terms of Service and the comment you are posting is in compliance with such terms. Be polite. Inappropriate posts may be removed by the moderator. Send us your feedback.

•••
•••
•••
•••

Pittsfield Jobs

•••
Enter and win $5000
•••
•••

Pittsfield People Search

Addresses and phone numbers for FREE

•••

Pittsfield News, Events & Info

Click for news, events and info in Pittsfield
•••

Personal Finance

Mortgages [ See current mortgage rates ]
•••