Bush Tax Cut Shell Game by Obama

Posted on December 3, 2010

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Anyone who thought after the November elections “shellacking” Obama and the Dems would ‘see the light” and extend the Bush tax cuts was dead wrong. It seems the dems want to play shell games and make deals with the Bush cuts. Unless these tax cuts are extended now many middle class American families will pay over 4000 dollars in New taxes in 2012.

The lasted Dem wants to extend all tax breaks in the expiring stimulus package.

The gambit by the Obama administration throws a curveball into the negotiations. While the lame-duck session has been consumed by proposals over how to avert the looming expiration of the Bush-era cuts, to this point, few have focused on the Dec. 31 expiration of a slew of tax provisions from President Obama’s stimulus plan.  

But senior administration officials said Thursday that those provisions are worth $150 billion a year — and they want them extended temporarily. Treasury Secretary Tim Geithner and White House budget director Jacob Lew, the administration’s representatives in the Bush tax cut talks, have delivered that message to the other negotiators, the officials said. 

“If you believe it’s harmful that taxes go up in a recession … you certainly believe that’s true for middle-class households,” one official said. 

Though the stimulus cuts haven’t gotten much attention in Congress, the White House had previously pushed for some of the provisions to be extended. According to Fox News the gambit by the Obama administration throws a curveball into the negotiations. While the lame-duck session has been consumed by proposals over how to avert the looming expiration of the Bush-era cuts, to this point, few have focused on the Dec. 31 expiration of a slew of tax provisions from President Obama’s stimulus plan. 

“If you believe it’s harmful that taxes go up in a recession … you certainly believe that’s true for middle-class households,” one official said. 

The best-known of those is the Making Work Pay credit that gave up to $400 to individuals and up to $800 to families through adjusted withholding in their paychecks

The law also included a change to the child tax credit. Under the old law, some low-income families got a refundable credit worth 15 percent of their income over $10,000. That threshold was changed slightly over the years but was lowered all the way down to $3,000 in the stimulus. The maximum credit is $1,000 per child. 

It may sound like a technical change, but the Center on Budget and Policy Priorities estimates that low-income families with 7.6 million children would lose the credit entirely if the change is not extended. 

There was also a change to the earned income tax credit, a provision for low-income workers. The stimulus increased the income cap after which the credit value starts to decline — plus it added a category for families with three children. 

MORE…...foxnews.com/

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