BzaDem (1000+ posts) Sun Dec-05-10 09:53 PM
Original message
A family of 4 making 40k/year total would lose about 2500/year if all the tax cuts expired in 2011.
Edited on Sun Dec-05-10 10:23 PM by BzaDem
The tax rate change alone would be around $1k, changes in the child tax credit would be another $1k, and changes in the earned income tax credit would be over $500.
So that's about a 6.25% pay cut.
What about a family of 4 at the poverty line, making 22k/year only? They would lose about $1400 for the child tax credit, and 600 for the earned income tax credit, which is a total of $2k.
That's about a 10% pay cut.
And this is assuming the resulting deal would ONLY extend the Bush tax cuts (and not Obama's tax credits). If the resulting deal extends the Obama tax credits in the stimulus, the difference between "deal" and "no deal" would be closer to 4k for both families.
Just some food for thought before you state that going back to the Clinton tax rates would be fine in this economy. Perhaps this is a reason Obama doesn't want to let them expire for everyone? Maybe he's not a corporatist wall street rich sellout etc etc etc?
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x9698107Tuesday Afternoon (1000+ posts) Sun Dec-05-10 09:56 PM
Response to Original message
1. link? Graph? Chart?
Edited on Sun Dec-05-10 09:56 PM by Tuesday Afternoon
I thought it was 3%
No link, not true. Too lazy to do research.
BzaDem (1000+ posts) Sun Dec-05-10 10:19 PM
Response to Reply #1
8. There are various calculators.
Edited on Sun Dec-05-10 10:22 PM by BzaDem
A Republican organization has http://www.mytaxburden.org /.
The Brookings institution and urban institute has http://calculator.taxpolicycenter.org , which also includes Obama stimulus tax credits being extended (versus none extended). Using this, the families in question would lose even MORE (3.5k-4k, instead of just 2-2.5k) if all the tax cuts expired.
onehandle (1000+ posts) Sun Dec-05-10 09:56 PM
Response to Original message
2. I just want to go back to the FDR rate on the top 2%.
Pay off the deficit in just a few years with cash to spare.
It wouldn't even come close . Stooooopid DUmmie.
AlabamaLibrul (639 posts) Sun Dec-05-10 09:57 PM
Response to Original message
3. I just want them to raise the min wage
Yeah, right. Even during a decent economy, that only hurts the lower income people. In this economy it drive unemployment way higher.
Lucinda (1000+ posts) Sun Dec-05-10 10:04 PM
Response to Original message
4. Well, I may be wrong
Edited on Sun Dec-05-10 10:08 PM by Lucinda
but I think the point in letting them expire is to use them as a tool. If they all expire, we push for middle class cuts, and bash the Reps for dragging their feet. They can't afford to piss of their base, so they get passed without any real damage done.
Why do DUmmies hate those that provide jobs?
bluestate10 (205 posts) Sun Dec-05-10 10:04 PM
Response to Original message
5. Such a family is likely drawing some type of public assistance that will be cut.
Your model family is likely drawing some type of public assistance. You're talking Mississippi level income. Public assistance is going to get cut to the bone once tax cuts are retained, the budget deficit and federal debt have to be cut somehow. Take away as much as $300 per month in public assistance (food stamps, school lunches, Medicaid) and that family of four comes out behind by 50%.
DUmmie has reading comprehension problems. The OP was just based on income, not welfare.
BzaDem (1000+ posts) Sun Dec-05-10 10:05 PM
Response to Reply #5
6. Nope. Public assistance does not at ALL depend on the tax cuts. It will or will not be cut
Edited on Sun Dec-05-10 10:06 PM by BzaDem
completely independently of the extension of the tax cuts.
Lasher (1000+ posts) Sun Dec-05-10 11:03 PM
Response to Reply #6
14. There is no way you could know that.
As a matter of fact it is much more logical to suppose that there will be attempts to justify cuts in social services by citing perpetuation of Bush tax cuts.
You mean like the Dems have cut TANF to get ObamaCare funded?
