President Obama's proposal
Capital gains and dividends are now untaxed for couples with incomes below $68,000. For everyone else, the tax rate is 15 percent. This option, proposed by President Obama, would raise the rate to 20 percent for households making roughly $250,000 a year and above.
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Reasons Against Obama's Proposal
The White House is missing the big picture. None of its plans address the two big problems that are hurting our economy: excessive government spending, and the uncertainty that their policies are creating for small businesses. The bill to get passed by the house is very unlikely.
Danielle Andrus."Obama To Propose Capital Investment Tax Breaks That Could Save 200 Billion Dollars" Advisor one. September 7,2010
Key Quote: "The AP noted that even if the proposals were approved, it's unlikely that they would have much effect on the economy by November, although an anonymous source told the agency the expanded tax breaks could benefit "several million people and 1.5 million businesses"
"Daniel Michael Andrus is an Australian politician. He is the current Australian Labor Party leader and Leader of the Opposition in Victoria. The member for the Legislative Assembly seat of Mulgrave since 2002, Andrews has served as a parliamentary secretary and minister in the Steve Bracks and John Brumby Labor governments.(Wikipedia)
John Boehner."GOP on Offense Against President Obama’s Job-Destroying Budget Proposal." February 15, 2001.
Key Quote: Speaker Boehner: President Obama’s budget is “spending the future.” “House Republicans today are speaking out in mass against President Obama’s new 2012 budget proposal, attacking the plan for spending, taxing and borrowing too much while making it more difficult to create jobs and doing little to address the country’s deficit. … ‘The president’s budget isn’t winning the future, it’s spending the future,’ Boehner said. ‘Our goal is to listen to the American people and liberate our economy from the shackles of debt, over-taxation, and big government.’”
"John Andrew Boehner is the 61st and current Speaker of the United States House of Representatives. A member of the Republican Party, he is the U.S. Representative from Ohio's 8th congressional district, serving since 1991. The district includes several rural and suburban areas near Cincinnati and Dayton, and a small portion of Dayton itself. Boehner previously served as the House Minority Leader from 2007 until 2011, and House Majority Leader from 2006 until 2007. As Speaker, Boehner is second in line to the presidency of the United States following the Vice President.
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Reasons in Favor for Obama's Proposal:
Dean Zerbe "A mixed review for Obama's tax proposal." Forbes Magazine. February 2, 2009.
Key Quote:The administration proposed making permanent this year's estate tax law, which exempts $3.5 million of each estate from tax. This may not be what some small-business owners wished for. After all, under President Bush's tax cuts the estate tax was supposedly going to disappear next year--for one year. But it could have been worse; in 2011, under current law, the estate tax exemption would have reverted to $1 million. Moreover, having certainty is of great importance for family planning and peace of mind.
Dean Zerbe- Mr. Zerbe is the National Managing Director for Alliantgroup, a Houston-based.-- a Houston-based provider of tax services to business -- www.alliantgroup.com. Dean was formerly tax counsel to the Senate Finance Committee.
For returning rates to Clinton-era levels $32 Billion
This option would return rates to their level under President Bill Clinton: 10 percent on capital gains for low-income households and 20 percent for everyone else, while dividends would again be taxed at the same rate as ordinary income.
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Alan Viard "Returning Rates to Clinton era" Wednesday, September 15, 2010
Key quote: The president defended his proposal by saying that, for high-income taxpayers, “the tax rates would just go back to where they were under President Clinton.”
Alan Viard was a senior economist at the Federal Reserve Bank of Dallas and an assistant professor of economics at Ohio State University prior to joining AEI. He has also worked for the Treasury Department's Office of Tax Analysis, the White House's Council of Economic Advisers, and the Joint Committee on Taxation of the U.S. Congress. He was recently named by Tax Notes as a nominee for 2009 Tax Person of the Year. Mr. Viard is also a member of the board of directors of the National Tax Association.
Why we should not Return to Clinton-era taxes
Jed Lawson "So-called deficit hawks rule out returning to Clinton-era tax rates", Daily Kos, March 22, 2001
Key quote: "I know it's fashionable to say that spending is the reason our deficits have exploded, but the truth is that the Bush tax cuts are biggest reason deficits have increased—and it's not even close. Other than TARP and the slowdown in GDP growth in the last year of the Bush presidency, the Bush tax cuts account for virtually all of the debt accumulated during his presidency. And if you aren't willing to talk about getting rid of all of the Bush tax cuts and returning to Clinton-era tax rates, you aren't serious about deficit reduction."
Jed Lawson- Journalist for the Daily Kos
Individual Income Tax Due in 2008,
Bush Law versus Clinton Law
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For taxpayers who take the standard deduction and have no children
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Taxpayer
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Tax That Would Have Been Owed under Clinton-Era Tax Law
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Tax Owed under Current Law, with Bush Tax Cuts
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Single, income of 30,000
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$3,157.50
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$2,756.25
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Single, income of 50,000
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$7,262.50
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$6,606.25
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Married, income of $50,000
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$5,085.00
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$4,012.50
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Married, income of $60,000
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$6,585.00
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$5,512.50
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Single, income of $75,000
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$14,262.50
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$12,856.25
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Married, income of $75,000
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$9,426.50
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$7,762.50
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Single, income of $125,000*
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$29,378.50
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$26,472.25
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Married, income of $125,000*
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$23,426.50
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$19,462.50
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*This chart does not take into account the Alternative Minimum Tax
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