President Bush's tax panel has released new proposals for changes to the tax code. So far, I'm not seeing anything to get excited about. Of course they've found new ways to screw the wealthy, because we all know that it's their "duty" to give everything they worked to earn back to the people who like to sit around, watch soaps and spit out babies.

Some of the proposed changes would include:

Eliminate the alternative minimum tax
The AMT is a parallel tax system originally intended to ensure the wealthy pay their fair share of taxes by eliminating many of the deductions and credits they get under the regular income tax system.

But because the income-exemption levels have never been indexed to inflation, by 2010 the AMT threatens to catch more than 30 million taxpayers, mostly from middle-income households. The estimated cost of repealing the AMT is $1.3 trillion over 10 years.

The panel was instructed to come up with proposals that are revenue-neutral, meaning they would have to produce the same revenue as expected under the current system. As a result, the panel had to take a hard look at the tax breaks offered under the current system to see where they could make up for that lost revenue, while at the same time ensuring a new tax code was fairer and more growth oriented than the current one.

So, basically, they are simply moving this tax upward in the pay scale. So once again, if you make more, they're going to take more away.

Alter homeowners' tax breaks
The panel recommended lowering the mortgage interest cap, which is the amount of a loan on which home owners would receive a tax break for interest paid, from $1 million to the average regional housing price in the range of $227,000 to $412.000.

The deduction would be converted to a credit equal to 15 percent of interest paid on mortgages up to the interest cap. A credit is a dollar-for-dollar reduction of the taxes you owe, while a deduction only reduces your taxable income by a percentage equal to your top tax rate.

Generally speaking, the higher your mortgage loan and the higher your tax bracket, the more likely it is that you'll see less of a tax break than you would under the current system.

And once again a Socialist's dream. Tax you on your mortgage based on how much you pay and how much you make.

Reduce the marriage penalty
All tax brackets, family credits and taxation of Social Security benefits for couples would be double those of individuals. Under the current system, some married couples filing jointly end up paying more in taxes than single taxpayers with the same income because of the way various deductions, creidts and tax brackets are structured.

Now this I can get behind. But why stop there? Why not eliminate the marriage penalty altogether? If it's wrong, it's wrong. It's not just a little bit wrong, in a certain bracket.

Reduce tax breaks on employer-provided health insurance
When you work for a company, your employer typically foots a large portion of your health-insurance premiums. That money, which is not reported on your W2, is tax-free to you.

The panel recommended capping the amount of tax-free money that may be used to pay for health insurance to $5,000 for single coverage or $11,500 for family coverage.

Now hold on just a minute there, hoss. Maybe I'm misunderstanding that, but are you talking about taxing me for money that my employer pays for my health care? Or are you just talking about taxing my employer for the good thing that he's trying to do for me and my family? Either way it's a crappy deal. Kentucky politicians have already managed to make health insurance in Kentucky so high and so complicated that nearly no one will carry it. If you now start taxing the money we use to buy it, you're going to totally screw us out of health care. Small companies like the one I work for will simply not be able to afford to pay it anymore, so I'll end up losing what little I've got. How exactly again does that qualify as taking care of your constituitients? Oh, I get it now. When you do this, I'll go broke trying to pay for healthcare, and I'll be forced out of my job because my employer is broke too. Then I can take advantage of your wonderful welfare system that you've set up with the money you just stole from me and my employer! Oh wow! I can't wait!

Repeal the federal deduction of the state and local tax deductions
Under the proposals, taxpayers would no longer be allowed to deduct the state and local taxes they pay on wage income, investment income, and property.

Former Senator John Breaux of Louisiana, who is the panel's vice chair, on CNBC Tuesday morning explained part of the panel's reasoning this way: "If people in California want to pay extra taxes to have their trash picked up, people in Texas shouldn't have to subsidize it."

That's right, just because your state and local governments take your money doesn't mean you don't still owe it to the federal government. After all, they've got to have their piece of the pie too.

Reduce the number of tax brackets
Under the panel's first proposal, which is a streamlined version of the current income tax, the number of tax brackets would be reduced from 6 to 4. They would be: 15%, 25%, 30% and 33%.

Under their second proposal, which combines the income tax with a progressive consumption tax, there would be only three tax brackets: 15%, 25% and 30%.

In the long run, this would probably end up screwing me. But I'd certainly like to see more on this than the proposed percentages that they want to steal from me. Where are they planning on dividing these brackets? Will most of America fall into that 25% bracket? If that's the case, then my taxes are going to go up quite a bit.

So basically, what I'm reading is that you can kiss those nice little tax breaks that Bush gave you last term goodbye. Then you can prepare yourself to bend over and take it. Because everything I'm seeing here looks like a bunch of liberal appeasement programs planned to give the goverment plenty of pork to work with.

When are the American people going to say that we've been screwed enough? When are we going to realize that the current welfare system is a sham? When are we going to demand that our "leaders" get their spending under control and stop stealing our hard earned money? I say the time is now. If we don't get this situation under control immediately, than it is going to get much worse much faster. Conservatives were able to rally together and stop the nomination of Harriet Miers, why can't we rally together and start demanding that our elected officials begin acting like the conservatives they ran as? These proposals haven't been passed into law yet. It's not to late to change them. Write your congressman. Start lobbying. Take control.

Quotes in this article courtesy CNN

Posted by: Drew at 10:30 AM | Comments (14) | Add Comment
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