Sunday, November 14, 2010

The Working Poor Will Be Most Hurt By Ending Tax Cuts

If the tax cuts enacted by President Bush end next year, it will be the working class with children who are hurt most of all. It amazes me that the Democrats get credit for being for the lower class, for children, and for seniors when they are attempting to do all of the cutting. While ending the cuts means a higher tax rate on the top end, it also means that the "earned income tax credit" will be halved. People who earn $30,000 a year with a child or two may be used to getting about $3,000 back from the IRS. They get that for one more year, then if Obama has his way this amount will drop to $1,500.

Now the separate question is the morality of the program. It seems to me that giving me back the money that I paid in is a tax cut, giving me MORE money than I paid in is welfare. Will I take it? Yes, and so should you, because they are doing it with borrowed money that we will have to pay back someday one way or another. It is more like they are forcing us to take a loan with unknown terms than a gift. If they were doing it without borrowing the money, it would be more like theft of one class to another.

My point is that the working class who is cheering at the idea of these tax cuts ending are going to be in for a huge surprise about a year from now when their income tax refunds are a fraction of what they have become used to.


Anonymous Anonymous said...

If it doesn't get extended, when will we begin to see the difference?

9:42 PM, November 14, 2010  
Anonymous Rick said...

The attack on the poor and middle class doesn't end there. Next year people will see an increase in food prices as well as gas prices at the pump. To be honest I would like to see the middle class pay their fair share when it comes to taxes. From what I have seen in the workforce those making 25k to 30k get back more than paid in on tax returns while those in the upper incomes pay the bills. What we need is a restructuring of the income tax.

3:48 AM, November 15, 2010  
Blogger Mark Moore (Moderator) said...

The tax returns you are about to fill out will be the last time. In 2011, the higher taxes kick in.

5:07 AM, November 15, 2010  
Anonymous Anonymous said...

The worst part to me is that the income tax goes largely to service the interest on the debt we're paying on fiat paper money.

So very little of the proceeds from income taxes actually goes into the funding of governmental functions. It is from other taxes (such as gasoline taxes) that infrastructure is funded, for instance.

Our taxes are going to increase for tax year 2010 (income tax filings in 2011) largely because we are paying interest on worthless paper money.

As long as we have a central bank and a debt based currency, higher taxes over time on the citizenry will always be the result. There is no other possible outcome. That is because no matter the amount of currency in circulation, there is always more owed (in interest and principle) than exists, literally. So to keep the system afloat the government has to increase / inflate the monetary base every year in order to cover the interest and keep the fraud going.

If you throw the funding of unnecessary wars into the mix (Korea, Vietnam, Middle Eastern Wars) then you only speed up the process whereby the citizenry gets soaked.

We're entering a phase similar to the last century of the Roman Empire.

During that time, they inflated their currency dramatically to keep their empire afloat (by melting their silver and gold coins and reminted them with diluted precious metal content). When that proved insufficient to fund their empire they increased the confiscation of property of the citizenry to make ends meet.

That is what is happening now. The IRS staff has been beefed up big time with the "stimulus" bills. They're coming for our property. You're going to see a lot of audits and property foreclosures over the coming years.

Eventually, with enough abuse in Rome the people lost loyalty to the empire. The bread and circus citizenry stopped begin loyal when their circus was taken away.

We're also a bread and circus society but we're not to the point of losing loyalty to the empire yet. It will take a lot of suffering and property confiscation first. When that starts happening people will lose their loyalty and the empire will collapse.

6:39 AM, November 15, 2010  

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