Monday, October 11, 2010

Obama Tax Hikes Have Already Hit Us

By Douglas V. Gibbs

Whenever liberals debate about taxation, though the historical truth about the Democrat Party is tax hike after tax hike after tax hike, today's leftist proclaims that Obama has cut taxes. . . or at least he has for those making less than $250,000 per year.

Problem is, the argument is not true.

In reality, taxes have already been raised an average of $3,900 this year. You won't realize it, however, until you do your tax returns.

The bugger that is the topic of discussion is the Alternative Minimum Tax. Congress has failed to extend a "fix" for the AMT this year, which means taxes are going up for some families making less than $50,000 per year, and virtually all married couples earning between $100,000 and $500,000 a year.

According to the CBO, an estimated 4.5 million American households were subject to the AMT in 2009, and 27.2 million are now liable to pay the AMT for the 2010 tax year unless Congress acts before December 31.

The AMT was enacted in 1969, with the intention to impose taxes on high-income individuals who used deductions and loopholes to reduce or eliminate their liability under the regular income tax. However, the AMT has not been adjusted for inflation, so each year families at lower levels of income are also subject to the tax.

Each year special patches temporarily exempt millions of Americans from the tax. This year, however, Congress has failed to address the issue, and pass a "fix" for this year's AMT. If Congress fails to renew the “patch” before Dec. 31, according to the CBO, the 27 million Americans subjected to the AMT this year will see their tax bills rise by an average of $3,900.

So much for that $250,000 line between tax breaks, and tax increases.

-- Political Pistachio Conservative News and Commentary

23 Million Americans Hit by a Tax Hike, But They May Not Know It Yet - CNS News

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