I read a very interesting article by CNN Money. While the Republicans fight for the wealthy, Obama's Making Work Pay tax credit is ending at the end of the year and it's really not being talked about.
This will have an impact on the economy. This is one of the reasons the economy didn't plummet into another Great Depression. What I found interesting was that Chuck Marr noted most people have no idea they received this per paycheck credit and Roberton Williams says it won't be extended because stimulus is a "bad word".
Stimulus is a bad word when it comes to helping folks who truly need it and the folks who's spending saved this economy from a worse fate.
It's a good word when helping the financial institutions who sent this country into the Great Recession because, let's face it, bailout funds are a form of stimulus for the super wealthy.
I want to believe that the middle class tax cuts will continue and those at the top are left to expire, but have no faith Democrats will stick together and do the right thing.
Democrats panicked into error not addressing this before the mid-term elections, but many Democrats were to concerned they weren't acting enough like Republicans.
http://finance.yahoo.com/...
Are you ready to give up $30 a month?
That's what may come out of your paycheck if -- as expected -- the Making Work Pay tax credit expires at the end of the year.
The credit was enacted last year as part of the Recovery Act to put more cash in people's pockets. For the past two years, it has boosted paychecks by up to $400 for single filers and $800 for joint filers by reducing the tax withheld and giving a credit for that amount. That's $33 or $67 a month.
Taxpayers who make $75,000 or less are eligible for the full credit, while higher earners can receive partial credit. More than 90% of working Americans have been helped by the tax break.
Now they will feel the pain when the credit goes away.
Republicans are fighting to extend the Bush cuts for everyone -- including higher income Americans. But Obama, who has promised not to raise taxes on the middle class, is pushing to preserve the cuts only for family income up to $250,000.
"The most curious aspect of the tax debate is the obsession with taxes at the high end," said Chuck Marr, director of federal tax policy at the left-leaning Center on Budget and Policy Priorities. "But when almost every middle and lower class American is going to face higher taxes, nobody's talking about it."
But if the extension isn't passed, the 110 million families that received higher paychecks in 2009 and 2010 will owe more taxes than they did during those two years.
"Most people may have no idea they received it and no idea that it's going away," said Marr. "But what you can be certain of is that they'll have less money and they'll spend less -- and this is a terrible time for the economy to lose $60 billion of spending."