Tax Cut? What Tax Cut?

[teddywolf]

Well, Mr Bush has unveiled his stimulus package. Things of note and snarky comments to follow.

First, he's increasing the child tax credit from $600 to $1,000 a year. So each child, whose upkeep will easily cost you $5k-$10k in a year (if not more), will save you $400 on your taxes. Woo frickin hoo. That said it is a step in the right direction.
Second, he's elminating the marriage penalty. This I will actually say is cool.
Third, he's raising the deductible for small businesses for depreciation of assets. OK, I've had accounting courses so that's why *I* think it's decent. And I'm not afraid to say so. He's linking the amount to the rate of inflation after this point. Why can't he do that for the child tax credit, huh?
Fourth, he's accelerating the tax cuts which are putting us back in deficit spending. Smart. Real smart. We need more holes in the wallet like we need more holes in the head.
Fifth, and this is the centerpiece of the plan, he's eliminating taxes on stock dividends.
Say WHAT?!?
He feels it's double taxation, see, because corporations are already taxed. He seems to feel it's important because half of the population owns stock.
Of course, most half of us have small amounts in 401(k) plans. Where the stuff already isn't taxed.

Equitable, huh? Nobody will be taxed on dividends whether they have earn them or not.

I'm getting steamed about this. Really steamed. I'm starting to wonder if I should run for public office. This shit has gotta stop.

Comments

[greendalek.livejournal.com]

Well, what's stopping you? (Besides having every aspect of your life under the press microscope, I mean...)

Marriage penalty

[cheshyre]

I've been busy with classes lately, so haven't been following the news so closely.
Have they actually eliminated the marriage penalty, or just accentuate the tax penalty against singles.

Only about half of taxpayers are actually penalized by marriage. The other half (such as myself and xiphias) actually did better taxwise by getting married than we did as singles.

See http://groups.google.com/groups?selm=8m477m$alf$1@nntp9.atl.mindspring.net for an old post I made with some numerical stats about the marriage penalty.

[xiphias.livejournal.com]

I found myself yelling at the radio, "ARE YOU A FUCKING MORON OR ARE YOU JUST EVIL??"

As it turns out, I am, in fact, one of the "millions of Americans" who would benefit from the elimination of taxes on dividends. I would recieve approximately 65 cents a year.

[bikergeek.livejournal.com]

Corporations don't pay taxes. They simply pass the cost of higher taxes onto their purchasers in the form of higher prices. Raise taxes on a corporation like, say, General Motors, and the result is that you pay an extra $50 for your new car.

[jadasc.livejournal.com]

He feels it's double taxation, see, because corporations are already taxed. He seems to feel it's important because half of the population owns stock.

You know, I lose 30% of my check to federal and state taxes... and then I pay sales tax on every single thing I buy! It's double taxation, I tell ya.