Yesterday President Bush rolled up his sleeves and told the truth about liberal inclinations to raise taxes and he did it in an amicable way:
President Bush accused Democrats on Tuesday of being “genetically disposed” to raise taxes, as he sharpened his rhetoric on the economy in an effort to rally Republicans to the polls next month.
Appearing here on behalf of GOP congressional hopeful Vern Buchanan, Bush mocked Democrats for what he described as their misplaced pessimism that tax cuts would not stimulate the economy. He said it was only one of many poor predictions by the Democrats and suggested they are making another mistake in their growing confidence that they might take the House next month.
“I think they may be measuring the drapes,” Bush said to titters within the crowd of GOP partisans. “If their electoral predictions are as reliable as their economic predictions, November 7th is going to be a good day for the Republicans.”
Speaking of raising taxes, make sure to take a peek in the extended section to read a list of tax cuts that Dems will do their best to “let expire” (read raise taxes) if they take control of Congress. The list was put together by the Republican Study Committee:
Ø Taxpayers in states with no state income tax will not be allowed to deduct their sales taxes from their federal income tax.
(Technically, this tax increase above has already occurred; however, since most tax returns for 2006 are not filed until the winter or spring of 2007, this increase can still be reversed without most taxpayers being affected by it.)
Ø The exemption for the Alternative Minimum Tax (AMT) will decrease from $42,500 to $33,750 for single filers and from $62,550 to $45,000 for married couples filing jointly.
Ø The standard deduction for couples as a percentage of the standard deduction for singles will decrease from 200% to 174%–reinstating the marriage penalty.
Ø The top end of the 15% marginal income tax bracket for couples as a percentage of the top end for singles will decrease from 200% to 174%–reinstating the marriage penalty.
Ø The section 179 small business expensing cap will decrease from $100,000 to $25,000, and the definition of a small business will decrease from $400,000 to $200,000.
Ø The child tax credit will decrease from $1,000 to $500.
Ø The marginal income tax rates will increase as follows:
–35% bracket will increase to 39.6%
–33% bracket will increase to 36%
–28% bracket will increase to 31%
–25% bracket will increase to 28%
–10% bracket will increase to 15%
Ø The 10% marginal income tax bracket will contract from covering the first $7,000 of income for singles and $14,000 for joint filers to covering only the first $6,000 of income for singles and $12,000 for joint filers.
Ø The personal capital gains rate will increase from 15% and 0% to 20% and 10%.
Ø Dividends will no longer be taxed at the personal capital gains rates, thereby increasing the double taxation of dividends by as much as 62%.
Ø The annual education IRA contribution limit will decrease from $2,000 to $500.
Ø The standard deduction for couples as a percentage of the standard deduction for singles will decrease from 174% to 167%–further increasing the marriage penalty.
Ø The top end of the 15% marginal income tax bracket for couples as a percentage of the top end for singles will decrease from 174% to 167%–further increasing the marriage penalty.
Ø The estate tax using the “stepped up” basis will return with a 60% maximum rate (including surtax) and $1 million exemption, after years of decreasing estate tax rates, increasing exemptions, and one year using the “carryover” basis to calculate the tax due.