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View Diary: Harry Reid rips John Boehner for skipping town as tax hikes loom (117 comments)

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  •  Good! I think that's just about the end of it. (19+ / 0-)

    Once again, the crazy nutcase GOP has saved Social Security from President Obama.

    Now we can go ahead and jump. Deficit no longer an issue and you just watch...the economy will hold up fine.

    •  I'm with you BBB! (9+ / 0-)

      I say let the cards fall where they may.  People will adjust or they will pass something with the new congress before any taxes are taken out of paychecks. Either way, you are correct, BBB, the economy will be just fine.

      We're not a bunch of whiny babies like them - we can suck it up and take it.  Although my husband was out of work for two years, we can take a tax rise and be proud that the dems didn't cave to a bunch of terrorists.

      being mindful and keepin' it real

      by Raggedy Ann on Thu Dec 27, 2012 at 08:02:31 AM PST

      [ Parent ]

      •  IRS is slow-walking this one (4+ / 0-)
        Recommended by:
        bear83, grrr, tb mare, schnecke21

        The IRS has said (forgot where I saw this) that they are not rushing to issue new withholding tables until Congress makes up its mind, because they figure there will be a new bill passed eventually (likely retroactive to Jan. 1) and there's no reason for employers and payroll services to go through a double switcheroo.

        I would guess they won't issue anything until at least the end of January, and then give employers until the end of February to implement the new withholding.

        The extra 2% for FICA and Medicare may kick in on Jan. 1, but for many workers that's minor compared to the income tax bite.

        •  How does that work, though? (0+ / 0-)

          Come January, the new withholding is the old withholding.
          Somebody's checks are going to be wrong.

          LG: You know what? You got spunk. MR: Well, Yes... LG: I hate spunk!

          by dinotrac on Thu Dec 27, 2012 at 08:36:53 AM PST

          [ Parent ]

        •  The income tax bite is basically $37.50 a month (4+ / 0-)
          Recommended by:
          bear83, Frank Palmer, marzook, dfe

          for most workers, caused by the expiration of the 10% marginal bracket. For the median earner, the FICA expiration is ~$65-$70 a month.

          (That's $450 a year for income, $800 a year for FICA, FWIW)

          So you've got the importance of the two reversed.

          The FICA holiday needs to end (as all holidays must), but it should be a phased ending, and not coincident with a simultaneous income tax increase.

          All else being equal, I'd like to see all the income tax rates revert, with the exception of the 10% bracket.

          Non enim propter gloriam, diuicias aut honores pugnamus set propter libertatem solummodo quam Nemo bonus nisi simul cum vita amittit. -Declaration of Arbroath

          by Robobagpiper on Thu Dec 27, 2012 at 08:39:16 AM PST

          [ Parent ]

          •  Quite right (1+ / 0-)
            Recommended by:

            For most people the SS bite is larger than teh income tax bite. (46% of the population doesn't even pay income tax, although I don't know whether this change will affect that number.)

            The income tax gets (somewhat) more money, but that is becasue it is levied on the high-income individuals who get a  much larger share of the income than their share of the population.

            •  It doesn't change the number who make too (1+ / 0-)
              Recommended by:
              Frank Palmer

              little to pay income tax.

              The primary change for most workers in the Bush tax cuts was that the bottom bracket, which was previously taxed at 15%, was split into two brackets; tax on the first $9000 of taxable income (double that in a 2-earner household) was lowered to 10%, and the upper end of the old bracket remained 15%.

              If the 10% bracket expires, everyone making over $9000 in taxable income pays 5% more on the first $9000, ergo $450 more.

              If you make less than $9000 in taxable income, but more than zero, you pay half again what you previously did in total income taxes, up to $450 more.

              There were more changes to the upper brackets, but they don't affect people until they're well above median income.

              Non enim propter gloriam, diuicias aut honores pugnamus set propter libertatem solummodo quam Nemo bonus nisi simul cum vita amittit. -Declaration of Arbroath

              by Robobagpiper on Thu Dec 27, 2012 at 10:17:39 AM PST

              [ Parent ]

            •  It will hurt the bottom the most (0+ / 0-)

              The Earned Income credit will be gone and the dependent deductions greatly reduced. The elderly will find it hard to get care with the huge cut to provider payments for Medicare. Households above the median will certainly be hurt but most of their pain will be from the results of the economy tanking once all that money is removed from the economy. Those below the median will be hurting as soon as their tax bill rises.

        •  That would be my guess. (0+ / 0-)

          Thus my comment that we might not see a change in our paychecks right away.  And if not, I'll suck it up!

          being mindful and keepin' it real

          by Raggedy Ann on Thu Dec 27, 2012 at 08:55:29 AM PST

          [ Parent ]

      •  Raggedy Ann - What about those of (4+ / 0-)

        us who rely on a UI check?  How long until the benefits are reinstated? How long will it be? Obviously, you and your husband are sucking it up. I'm not.

        •  Well, he finally got a job (3+ / 0-)
          Recommended by:
          cyeko, Minnesota Deb, Just Bob

          in November.  We've spent the last 3 paychecks catching up and, hopefully, will use the next check for the last catching up.  He was self-employed, so no UI for us during his downtime.  The economic downturn of 2008 really wreaked havoc with our business.

          I'm sorry that I forgot about the UI people.  I hope for the best because, how can you suck it up - you are already sucking it up, right?  This is the part that really pisses me off - they don't care who gets hurt in the process.


          being mindful and keepin' it real

          by Raggedy Ann on Thu Dec 27, 2012 at 09:24:40 AM PST

          [ Parent ]

    •  Off the curb we go (1+ / 0-)
      Recommended by:

      full speed ahead as far as I am concerned.  We have to stop the hostage taking.

      The thing about democracy, beloveds, is that it is not neat, orderly, or quiet. It requires a certain relish for confusion. Molly Ivins

      by MufsMom on Thu Dec 27, 2012 at 09:39:16 AM PST

      [ Parent ]

    •  Um, unemployment compensation (4+ / 0-)

      The unemployment compensation extension expires for 2,000,000 families Jan. 1.

      The reason that you don't mind the drop off the fiscal cliff is that you're going to land on the soft bodies of workers (and their kids) who went over before you.

      •  I'm not willing (1+ / 0-)
        Recommended by:

        to dismantle social security to get unemployment benefits for anybody, including some members of my own family. If that's the choice, no thanks.

        We don't have to give away the farm to get a bushel of corn.

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