Report Says Bush's Tax Cuts Will Cause Some to Pay More

[Judi Lynn]

Report Says Bush's Tax Cuts Will Cause Some to Pay More

By DAVID CAY JOHNSTON
Published: September 24, 2005

Over the next 10 years, Americans will not receive nearly $750 billion in tax cuts sponsored by President Bush because the cuts will be offset by the alternative minimum tax, a new report by Congressional tax specialists shows.

The report, prepared by the staff of the Congressional Joint Committee on Taxation, said that from 2006 to 2015, Americans would pay as much as $1.1 trillion more under the alternative minimum tax, partly as a result of the Bush tax cuts.

The Bush tax cuts reduced the bill for millions of taxpayers to a level that will subject them to the alternative minimum tax instead of the standard tax rate. As a result, the report said, their tax savings would be reduced by a total of $739.2 billion over the 10 years.

Congress has passed a modest adjustment to the alternative minimum tax to allow more taxpayers to take advantage of the Bush tax cuts, but that expires at the year-end.
(snip/...)

http://www.nytimes.com/2005/09/24/business/24tax.html
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[rodeodance]

1. so why did Congress not know this when it was first passed--or did they?

[snippy]

10. They did know it, but if they had included the cost of adjusting the AMT

in Bush's tax cuts, then the projected deficits would have been even more staggering. So the republicans decided to ignore the AMT when they passed the tax cuts and just pass an adjustment to it each year. They have been temporarily adjusting the AMT every year but it still ends up applying to many more people each year who the AMT never was intended to apply to. Quite a few democrats pointed this out at the time the tax cuts were passed.

[Tace]

2. Smoke And Mirrors

Just blatant deception on the part of Bushco. They know exactly what they're doing with this.

[Starbucks Anarchist]

3. Read "Perfectly Legal."

It's written by the author of the article and explains at length all the loopholes in the tax system the ultra-rich exploit.

[bluestateguy]

4. We are paying more

in higher property taxes, health insurance premiums, electric bills, and now because gasoline is more expensive, we are paying more at the grocery store too!!

[Mika]

16. And getting less coverage too.

Pay more & get less.

Mission accomplished.

[cassiepriam]

5. What happens when BushCo has wiped out the middle class?? nt

[WCGreen]

6. They are fucked cause we support them.....

I truly believe they are trying t amass as much wealth and power as they can so in the coming chaos they will be able to purchase protection...

Honestly!

Read the Masque of th Red Death by Edgar Allen Poe.....

A short short story...

A tale of woe....

that is so applicable to today....

[cassiepriam]

19. ironic, the chaos they caused

They are fools, there will be no protection for them
if society falls apart.

[The Backlash Cometh]

7. We revert to Central America.

The landowners and the peons. The landowners can do all kinds of wrong and there isn't anything anyone can do about it. Government is used as an equalizer between the haves and have nots. A socialist government means the poor get a fair shot. A popularly elected rabi blanco means the poor are in for a bad year.

[1932]

12. Same thing that happened to former slaves after the civil war;

the same thing that happened to Africans in countries after the end of Apartheid.

You live in debt to a large corporation, and find yourself even worse off.

I'm in the middle of a book about Namibia's first president. He describes how, although Namibians were better off politically after the end of apartheid, they were worse off economically. Employers had an interest in keeping slaves healthy. But, after that was outlawed, they had huge employmente companies which supplied farmers with labor. There were so many people with no jobs, no assets, who lived in economically-depressed communities (this is why land reform and repartations are so important) that they had an endless supply of labor. Employers could work people to death, could deny them vacations, etc., and if someone fell out of the workforce, the employment company could easily find a replacement.

That's what life in America will be like without a middle class.

[Mountainman]

8. We were hit with the AMT last year. It sucks

We thought we would get a refund because we have two mortgage loans on our home and thought the interest would help to lower our taxable income but nooooooooooooooooooooooooooooooooooooooo!
Surprise surprise! When we got to the part were you calculate the tax, we found out that the AMT reduced our deductions and we ended up owing the State and Feds over $5000!

I had know idea we would ever fall into that. We are screwed because I cannot put the money into an IRA because I need it to pay bills yet I also need to pay it to Uncle Sam. This year I made less and maybe it won't get me but next year I will be in the same boat!

Fuck Bush, This is how they say that tax cuts increase revenue. I did not get a tax cut. Only the super wealthy did.

[AzDar]

9. But hey...We got a 500+ check from Shrubber's brilliant tax scheme

in what, 2001? Which we found out was TAXABLE INCOME in 2002.
When are people going up wake up to his schemes? I mean, it isn't like they're so clever or anything.....

[WCGreen]

18. Federal Tax refunds are not taxable at the federal level....

PM with details....

It's not to late to get that money back...

I have been a tax preparer for over 20 years....

[zara]

11. Don't forget the children, who will pay much more with interest

to Bush corporate sponsors and cronies.

[koopie57]

13. I can't afford any more tax cuts!!!!

They could raise the damn taxes and I'd probably be better off.

[AlCzervik]

14. They will literally Starve this beast for real this time

i suspect that was part of the overall plan.

[truthisfreedom]

15. let'scall this what it is... THE BUSH TAX INCREASE.

and call it loudly!

[Danmel]

17. I just knew it would be me

Missed the AMT by a thread last year. We are just so screwed on every level.

[cassiepriam]

20. The middle class gets hit again..... nt