What tax deal could mean for you
December 7th, 2010
12:07 PM ET

What tax deal could mean for you

The White House is working to get Democrats to support a last-minute deal on taxes that President Barack Obama hammered out with Republican leaders.

The compromise would extend the Bush-era tax cuts for two more years, keeping income tax rates at their current levels for everyone, as Republicans insisted. Obama and other Democrats wanted tax rates to rise only for individuals earning more than $200,000 a year and for families making $250,000 or more a year.

If the deal goes through, here's what it will mean for you:

Payroll taxes – Wage earners will have extra money in their paychecks with the lowering of the payroll tax from 6.2% to 4.2%. Someone earning $50,000 a year would pay $1,000 less in Social Security contributions next year. Someone earning $100,000 would pay $2,000 less. The payroll tax rate would go back up to 6.2% in 2012.

Income taxes - Not much to see here - at least in terms of your wallet. The compromise would extend the Bush-era tax cuts for two more years, which basically means the income tax rates will remain exactly the same for the next two years at their current levels for everyone.

White House fact sheet on agreement

Individual tax breaks - Low- and middle-income tax filers will see an increased value in credits for two years if they file for an earned income tax credit, the child credit or a revamped tax credit for college costs.

Unemployment benefits - The package would leave in place for 13 months the option to file for extended federal unemployment benefits. In some states, especially where job loss is extremely high, it can be up to 99 weeks.

Estate taxes - The estate tax exemption, which lapsed this year, would be would be set at $5 million and the top rate would be set at 35%.

CNNMoney.com: Tax cut deal and surprise stimulus - the cost

If a deal can't be reached:

Taxes will go up for everyone, since the current rates set under President George W. Bush expire automatically at the end of 2010. Democrats control both houses of Congress, but the Republicans will take control of the House of Representatives in January, and the Democratic majority in the Senate will be smaller than it is now.

The estate tax would return in 2011 with a $1 million exemption level and a top rate of 55%.

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Filed under: Finance • Taxes
soundoff (596 Responses)
  1. Publius 13

    The silence coming from the TEA parties is deafening. What about their #1 concern, responsible fiscal policy?

    December 7, 2010 at 1:47 pm | Report abuse |
  2. postedbygeorge

    The $250,000 tax base is a Net Income, not gross. Anyone who makes $250,000 and pays taxes on $250,000 will soon be out of business, because they are extremely uneducated. Realistically to pay taxes on $250,000, an income would probably be around $1,000,000. The ability to be earning over $250,000 depends on politicians conning people into believing that things, like the Bush Tax cuts are good, while those who are aware of the con, use the tools handed to them. If the Bush Tax cuts were a good thing and were supposed to help the economy, why are they still needed? Because only the people that were not conned took advantage and support the politicians that support the con. Bush Tax Cuts, reverse WMD, instead of exploding, the economy imploded. The voting public can initiate a recall of any employee that was elected into office. Who were the employees that actively sought to extend the Tax Cuts and where against the elimination of the 1099 joke? The employers of deficient employees have the right and obligation to fire these inept employees. If the voting public kept a better eye on our employees they would do a better job and they would not bombard us with their "I can do a better job" political advertising at election time, or "employment catwalk".

    December 7, 2010 at 1:47 pm | Report abuse |
  3. kasm

    Aceryder and all you other whiners who don’t know anything about federal wages; I suggest you go to opm.gov to see our wages and wage increases every year then you can actually see what we are talking about before taxes.

    The only people who receive the type of wages that are assumed are federal are : politicians, their aides, and government civilian contractors.

    Go cry your own rivers..."wah! I didn't get my 7% raise this year! Wah! "

    SHUT UP!

    December 7, 2010 at 1:48 pm | Report abuse |
  4. Anthony

    Tax cuts are the worst thing to do when the country is deeeeep in debt! How can a government that is over a trillion dollars in debt operate cutting their primary source of income and still keep spending? Especially when the only benefit to most of the people in the country will be an extra $800. The only people who will benefit from this IS the rich who have been spending money regardless of the state of the economy. Then of course CNN plays all of the news clips of Obama stating during the campaign that he would allow the tax cuts to expire in a critical manner while they say that these tax cuts are a good thing. The tax cuts are a BAD IDEA and I believe that President Obama should stand firm against the GREEDY REPUBLICANS and their backers and make them pay their fair share of the taxes. Their had free run to make enough money to last 10 lifetimes during the Bush administration it's time for a change. Anyone who agrees with the republican tax policy who makes less than 100K per year just because it's the republican thing to do, I hope you stash that $800 annual benefit for FOOD. Because the deficit effects all of us in some ways but the wealthy are much better protected. Just remember who pushed for the tax cuts to be extended when this comes back to bite us really hard.

    December 7, 2010 at 1:49 pm | Report abuse |
    • Samantha

      Your right and it's even worse when the richest 5% of the country aren't paying their share of taxes.

      December 7, 2010 at 1:52 pm | Report abuse |
  5. sally

    It is outrageous that millionaires should get this tax break continued! Social Security recipients will not receive any cost of living increases, federal workers will have their wages frozen and the super rich will get a break! I don't want to hear any more hypocritical yap from the Republicans about the deficit...they are the biggest contributors to it with their senseless wars in Iraq and bloated defense spending.

    December 7, 2010 at 1:51 pm | Report abuse |
    • NYC Kristen

      You are SO right! It's ridiculous when anyone mentions cuts to defense, and the Republicans go wild and flip out. Well, the wars we are in are creating a giant sinkhole of debt. They are wars we should not have even started. I'm sorry but we aren't going to be able to fix the world's problems, or fight "Terrorism" which is really an opinion based on who you are talking to. They are cutting back on National Parks, Federal workers, and so many things that make our country great. This country is going down the drain rather quickly, and it's quite frightening. It's a shame we can't trust our leaders, even those who were once so inspiring.

      December 7, 2010 at 3:51 pm | Report abuse |
  6. JRR

    None of this matters. Holding the tax rate where it is, is fine for now. The real problem is creating jobs and lowering unemployment. Tax breaks or increases on the wealth will have little effect either way. I get sick of people saying that they won't hire people if their personal income is taxed hire. That's garbage! I have owned by own business and the primary factor affecting hiring is demand. Not to mention there are many everyday expenses that can be legally paid for by the company, and that never shows up on your personal income. I am not a fan for taxes period, but there needs to be a bit more unbiased discussion.

    December 7, 2010 at 1:51 pm | Report abuse |
    • Aeromechanic.

      You're right. If tax breaks created jobs, where are they now? Demand is what creates jobs, case closed.

      December 7, 2010 at 2:37 pm | Report abuse |
    • dale

      Well put, I'm also a small business owner. I support not raising taxes on anyone, how anybody can think that the answers to our deficits and unemployment is to give more of our hard earned money to these lying, stealing, over-spending manipulators (The Federal Government) is a good idea has got to be nuts!!!!! In addition, to extend unemployment benefits for additional 13 months is ridiculous! If you can't find a job in two years, you aren't looking hard enough!

      December 7, 2010 at 2:51 pm | Report abuse |
    • jreynozo

      So, do you believe that increasing taxes will increase demand, decrease demand, or have no effect? I cannot speak for everyone, but I can tell you if I have less money in my pocket, I will spend less which will decrease my demand for goods and services. I suspect that this would be true for most others as well and if that is the case, then yours and other businesses would have less demand because everybody is making less and I would suspect that would mean that businesses would have to decrease overhead due to the lower demand caused by increased taxes.

      Please let me know if my logic is faulty.

      Regards – John

      December 7, 2010 at 2:55 pm | Report abuse |
    • Nathan

      Important to note–raising taxes on people in the middle and lower income brackets would decrease demand (less disposable income), HOWEVER raising taxes on upper income individuals does not have the same effect–the super wealthy already buy what they want, they do not spend their money on consumer goods the way other Americans would.

      Extending lower income tax breaks for 2 years is a good thing for consumer spending–the same cannot be said of upper income individuals who may invest the money (and only pay 15% taxes on that income) and save without spending. It's a problem when people are rewarded for speculation and not hard work and earned income.

      December 7, 2010 at 3:22 pm | Report abuse |
    • Joel

      John:

      "So, do you believe that increasing taxes will increase demand, decrease demand, or have no effect? I cannot speak for everyone, but I can tell you if I have less money in my pocket, I will spend less which will decrease my demand for goods and services."

      The question is – where is the money most likely to help? If unemployment benefits are extended, the people who have no money to spend will have money to spend. I guarantee you, most of that money will get spent. If tax breaks are given to people like myself, that money mostly goes into the bank. I buy something when I see something I want. I don't bother checking my bank account, because I know I've got enough. It's a question of whether I want something and whether I think it's a fair price. Give me $10K, and I'll maybe spend $100 more. Give someone with no money $10K, and I guarantee you most of that will get spent.

      Sure – long term giving money to people who can't find jobs encourages them to not find jobs. How about we worry about that once the jobs exist? Once they exist, absolutely, cut off benefits.

      December 7, 2010 at 3:51 pm | Report abuse |
    • chicago2010

      Lower taxes for those making a lot of money make no difference in economy today. Many studies showed it. Why? In simple terms, you would either buy more Corola's with higher taxes or you can buy the same number of Jaguars with lower taxes. All in all, you create the same number of jobs who make different luxury. Back in days, there was no luxury. You either had a car or you did not have one. Now, you still have a car, but kind of car that makes a difference in your lifestyle. And I am not sure Jaguar workers make so much to create huge demand compared to Corola workers. It is all the same. Just names are different. And this is why until some level it is zero sum game. It creates demand for luxury product but does not create jobs.

      December 7, 2010 at 4:42 pm | Report abuse |
  7. John W

    Really i think you are all missing the point. Politicians have been selling the politicis of diviseness for some time. This is no different that selling antisemitism or racism. The point is to pick out a class, make them the villian, and try to get people to support you to get that villain

    The person who said people should be honored to pay more taxes must be crazy. The person who said no one wants to pay more taxes is correct. This isnt rocket science folks.

    Also true that we need to pay for what we get from our government. We can't just keep voting for stuff and then finding a scapegoat group to pay for it (let the slaves do the work for the farm).

    We are all in the same boat and the same country folks. We should set a limit, say 25k or something arbitrary below which folks pay no taxes. The rest should be flat out taxed at the same rate, be it 21, 25, 30 percent, what ever it takes to cover the costs. No one is special, no one is hated. No deductions, no exceptions. The corporate thing is a different issue.

    If you want a new program, say national health care, then the government can tell you exactly what percentage they expect everyone taxes to rise. Then if you want it, you pay for it.

    I grant this isnt the progressive tax code we all know and love(?), but the issue of class warfare and stalemate seems to me to be more critical. Our fellow citizens are in the final analysis no different that us. Some make more, some make less. Get used to it. Most arent evil millionaires bent on the destruction of the country.

    December 7, 2010 at 1:52 pm | Report abuse |
    • FatSean

      Your troll is weak.

      The wealthy get more benefit from our socialistic infrastructure and programs. They should pay a proportionally higher percentage.

      To compare this belief with racism? Bad troll!

      December 7, 2010 at 2:22 pm | Report abuse |
    • Chris

      I couldn't have said it better myself. I, too, am sick of stupid Americans engaging in class warfare. The politicians have us right where they want us. As I say in life, SIMPLIFY! Perhaps thinking outside the box for a change and installing the "Fair Tax" and see what happens. What the politicians are trying now doesn't work for the country as a whole, and we are all going to suffer in the end. Wake up Dems and GOPers, liberals, and conservatives! Stop drinking your prefered party's kool-aid.

      December 7, 2010 at 2:32 pm | Report abuse |
    • Doug

      Respect your call for fairness, John. However, the real problem is not the progressive tax structure but rather all the loop holes and exemptions. The millionaires are not paying their share. If that sounds like "class warfare" that's not my intention. If I'm paying an effective tax rate of 20% after my deductions on my 100k income, I would think it's fair that banking execs pay at least 20% on their 10+ million. The effective tax rate of the country is about 15% (federal revenue divided by GDP). Somebody's not paying and I know who. That's not class warfare to call that out.

      December 7, 2010 at 2:35 pm | Report abuse |
    • Brad

      "The wealthy get more benefit from our socialistic infrastructure and programs."

      Nice try Sean. Talk about trolling – you are either a troll or living in a completely upside down world.

      December 7, 2010 at 2:36 pm | Report abuse |
    • Nathan

      Wealthy people DO take more advantage of the infrastructure paid for by taxes, just like property laws were created to benefit those with property, not those with nothing.

      Wealthy people are also given advantages in interest rates (both paid and earned) and in the legal system (if you can afford the best lawyer...). Fact is, there is nothing "equal" about this country.

      As stated before, with loopholes and the capital gains tax many wealthy individuals pay less than middle class Americans. They can afford the accountants and investors.

      What nobody seems to mention is that, since Ronald Reagan the wealthiest 1% of our country has gone from having 10% of the wealth to 25% of it. Meanwhile the same "businesses" everyone defends (because they know a Mom&Pop that need defending) are largely corporations that outsource jobs (it's cheaper to pay someone in a third world country with lower standard of living!) to improve the bottom line.

      Class warfare is a reality–but not because the poor are rising up against the rich, but because the rich have been underpaying, overworking, physically endangering, outsourcing and maximizing their own salary and profit WITHOUT REGARD FOR WHAT IS GOOD FOR THE COUNTRY. You MUST understand–corporations work for profit, nothing else. They are not "American," they are often Multi-National and their goal is maximizing profit at any cost.

      Don't feel sorry for the guy driving a Bentley, he doesn't feel sorry for you.

      December 7, 2010 at 3:35 pm | Report abuse |
    • sweet2th

      I agree with you on your point that we can't just keep asking for things and expect the people(slaves) who work in state and federal government to do it for free. People have this notion that if you work for the government you're getting a free ride. Just like in any job, services are provided for a price. The people who receive the services government workers provide are closer to getting a free ride than the government employee. Govt. employees get paid less pay than the private sector in hopes of receiving a pension if they live long enough. If you want less govt. spending then stop demanding services that cost money.

      December 7, 2010 at 3:39 pm | Report abuse |
    • maureen C

      Well Said! people living in the new york area are killed with state, local and property taxes, and our problems are only getting worse. that 250K threshold isn't rich in this area. Besides the AMT takes care of the majority of us anyway. It's becoming a scary state of affairs in this country- blame those that have a little more – While the aristrocrates in our govt have all the power, and significant wealth; ie Clintons, Pelosi , Reid, to name a few; are pitting the peasents beneath them agianst each other – to fight for the crumbs. I agree set a flat tax – then cap it ! Set term limits – no special interests, no secret ballots or passing legislation in the back rooms like Obama care. Less is more .

      December 7, 2010 at 3:49 pm | Report abuse |
    • Bill E

      Well said and I agree totally with your remarks

      December 7, 2010 at 5:13 pm | Report abuse |
  8. Michael

    Do you all know that now 1% of the richest people have 25% of all income in the entire country. In 1976, 1% had only 9%. And you are saying that there should be no tax hikes for the richest??

    December 7, 2010 at 1:53 pm | Report abuse |
    • jreynozo

      Did you know that the top 1% of income earners pay 37% of all the taxes in the United States and that the top 5% of income earners pay more than 50% of the total revenue the government takes in annually? Did you know that under the current tax code that nearly 47% of all American households pay no Federal Income Tax at all and in fact the bottom 20% of income earners had an average tax rate of NEGATIVE 6.6%? For clarification sake I will state that this only includes Federal income taxes, not Social Security taxes (FICA which is a true regressive tax by the way), Medicare taxes, sales taxes, local taxes, or state taxes.

      I like numbers.

      Regards – John

      Regards – John

      December 7, 2010 at 3:10 pm | Report abuse |
    • TCP

      That is PRECISELY what we are saying. Close the loopholes. That is all. You can "raise" the taxes on the "rich" all you want. As long as there are loopholes guess what?...

      December 7, 2010 at 3:14 pm | Report abuse |
    • Nathan

      jreynozo – the top 1% also controls 43% of the country's financial wealth. So how is paying 37% of it anything to be astounded by? I think the more important part is that 50% of the families in this country live on less than $26,000 a year...and you want them to give the same percentage to taxes as the one living on $26,000 a month!

      The argument is borderline delusional–"ohhh, the rich pay so much in taxes it's unfair! but i don't mind that they control a higher percentage of the wealth and have every other advantage one could possibly imagine." They have more speech (which can somehow now be measured in dollars...) and many laws don't apply to them (maybe they know the county sheriff, or maybe they can pay robert shapiro to confuse and obstruct).

      Why speak up for someone who's never cared to speak up for you? They don't create jobs out of the goodness of their heart, they do so when they know hiring can make them more money. And, contrary to tinkle down economics (error mine), that comes from increased demand and consumer spending. For now, they're fine selling to other growing economies in Asia.

      December 7, 2010 at 3:50 pm | Report abuse |
    • Joel

      John:

      Did you know that Exxon paid no tax to the US government last year despite having record profits?

      Let's close off the loopholes.

      December 7, 2010 at 3:55 pm | Report abuse |
  9. Fricsaid

    I just can't wait to see what the heII is said when unemployment stays the same. Guess what you $250k and then some a year. You pretty much spend what you want to spend. The average Joe cannot. Until money is put into the pockets of middle-class america, we are not coming out of this recession any time soon. There are many things I use to buy and no longer cannot because the multi-billion dollar company that I work for hasn't given me a raise in 3 years. And when "average Joe" can't spend money on the goods that you make, guess what, you're going to start to loose money. I ask the rich, how much is enough?

    December 7, 2010 at 1:54 pm | Report abuse |
    • Chris

      Enough with the 'class' system. We are all Americans and dividing us into classes is toxic and non-productive.

      December 7, 2010 at 2:43 pm | Report abuse |
    • Glug Glug Glug

      you're a dope if you think rich people are worrying as much about you as you are about them

      December 7, 2010 at 3:50 pm | Report abuse |
    • Nathan

      I bet "forget the class system" was the same line kings and aristocrats used in the middle ages. We live in the 21st century, where we respect individual rights and understand EVERYONE'S wealth creates a growing economy, not just Bill Gates and Warren Buffet.

      And by the way, both Bill and Warren advocated letting tax cuts expire for the wealthy. We seem to respect them as businessmen and their humongous bank accounts, but don't care to listen when it doesn't suit our political persuasion...

      December 7, 2010 at 3:56 pm | Report abuse |
    • Brian

      So what happens when they raise taxes on the rich. Do the rich just eat that cost because they think they already have enough? NO, they pass that cost on by cutting jobs or not giving you that pay raise. We are not giving them a tax cut we are maintaining the levels we currently have.

      December 7, 2010 at 5:03 pm | Report abuse |
    • Bill E

      You want to steal my money and give to someone else? Who or what gives you the authority to take anything at all away from me and my family because we make more than 250k per year? And who are you to say that ALL of us need to have some skin in the game...and that means paying some tax. You want to complain because you dan't have as much as I do, WORK HARDER. That means getting off your butt and go to work...you don't like what you're making now, you do something about it....I LIVE OFF THE FRUITS OF MY LABOR.....NOT YOURS!

      December 7, 2010 at 5:20 pm | Report abuse |
  10. REEKO

    When you consider all taxes including payroll tax which is only on the first 100k earned low income and middle class folks pay a MUCH HIGHER tax burden as a percentage of theiir income. For these hard working Americans an extra $1,000 a year can mean whether or not they get to take a family vacation or do some work on their homes. The blood sucking lawyers and backstabbing bankers and souless insurance exectutives give their tax cuts to Rove and Freedom Works so they can keep the gravy train rolling. How many of you are convinced right now that wealthy white christian men are victims in this country? They seem to be doing a great job convincing people of that but when you look around who has all the power and influence? Half of us are a bunch of schmucks.

    December 7, 2010 at 1:54 pm | Report abuse |
    • Samantha

      Yes and the blood suckers are majority Republicans.

      December 7, 2010 at 2:04 pm | Report abuse |
    • Fernando

      sorry Samantha, the majority are the rich democrats.do some real research and you will see the truth

      December 7, 2010 at 2:34 pm | Report abuse |
    • Chris

      Samantha, stop drinking the kool-aid. Dems and 'blood sucking' republicans have you by the balls. Neither party gives a crap about you. Wake up, fool!

      December 7, 2010 at 2:45 pm | Report abuse |
    • REEKO

      Yes, it was the Republicans who wanted to save the tax breaks for the wealthy Democrats and the democrats who wanted to save the tax breaks for the middle class republicans. You are a genius. I can't believe we didn't see through that cleaver ruse from the beginning.

      December 7, 2010 at 3:04 pm | Report abuse |
    • Glug Glug Glug

      ok Chris, make up your mind...you say stop pushing class war and now you say rich democrats and republicans don't care about us....one or the other buddy

      December 7, 2010 at 3:53 pm | Report abuse |
  11. Charlie Everett WA.

    To MMR -

    Regarding your lawn man's business: If he grosses $420,000 year and pays his 10-man crew 2/3rds, then he's paying them $280,000, leaving him with $140,000 gross personal income. His personal tax is well below the $250,000 proposed by Obama. If he's having trouble filing a business tax, including expense deductions, I suggest he find a CPA. The service will enrich his business substantially.

    Any personal income at/under $250,000 for a couple would get the tax cut extension (a millionaire's first $250,000 would enjoy the same consideration). The national family average income for four people is between $50,000 and $60,000 year. Someone making $250,000 a year is earning 5 and 6-times the national average. I'd call that amount "rich."

    December 7, 2010 at 1:56 pm | Report abuse |
    • JRR

      Well said. I am not for pounding taxes on people, but we cannot pay for our system now. We either need to increase taxes, reduce spending or both. BTW, anyone who owns a small business should consult an accountant. It will make things much nicer.

      December 7, 2010 at 2:00 pm | Report abuse |
    • jreynozo

      @JRR

      I vote for reducing spending. Let's say that we cut Federal Spending 10% across the board. With nobody spared, not defense, not Social Security, not even my bridge to no where. How many people have had to deal with that kind of cut personally and managed just fine? It stinks, but we manage. I go with hamburger helper, beans and rice a little more than I would like, but I make it until I get back on my feet.

      Regards – John

      December 7, 2010 at 3:18 pm | Report abuse |
    • Bill E

      AND THIS IS A BAD THING? Who do you think pays to have all these people on unemployment? Obviously, NOT YOU.

      December 7, 2010 at 5:23 pm | Report abuse |
  12. Samantha

    FOR THE LIBERAL WHO DID NOT VOTE IN NOVEMBER YOU HAVE NOTHING TO SAY. STEP AWAY FROM YOUR KEYBOARD BECAUSE YOU WERE TO TRIFLING TO TAKE A MIN OF YOUR TIME AND VOTE SO NOW THE REPUBLICANS ARE GOING TO MAKE YOU WISH YOU HAD. I VOTED DID YOU?

    December 7, 2010 at 2:02 pm | Report abuse |
    • eric stanway

      Yes, I did. A straight Democratic ticket. Too bad cretins like yourself put these thugs back in office.

      December 7, 2010 at 2:53 pm | Report abuse |
    • Daver

      But the Dems get to hit the reset button in 2012 because of childish Rep games like this. If you're poor, unemployed, don't have health care, or you're gay, the Republicans are not your friend. That's how simple it will be to the average (uninformed, but hey, they're voting) voter in 2012.

      December 7, 2010 at 3:02 pm | Report abuse |
    • Sandra

      YES ! I did vote . I voted to get anyone out that was in.....Sooooooooooo Glad I did , I can already see our President is starting to listen that WE do not want Business as usual in Washington.

      December 7, 2010 at 3:14 pm | Report abuse |
    • Jim

      I concur. No Vote; No Opinion!

      December 7, 2010 at 3:27 pm | Report abuse |
  13. CorporateDrone

    Okay, class... time for a Pop Quiz!
    When unemployment drops next year - and it will - who deserves the credit? Republicans, or Obama?

    December 7, 2010 at 2:02 pm | Report abuse |
    • John

      Neither, but we will still call them Bush Tax Cuts.

      December 7, 2010 at 2:19 pm | Report abuse |
    • Mike

      Republicans can not take any credits for the economy coming out of recession (summer of 2009) and 20 months of consecutive economic growth – which includes private sector job growth. The Republicans said NO to everything. Obama and Dems were smart enough to get everything necessary to pass in the first 2 years. In the next 2 years, it will be about what gov't spending to cut. Obama will continue to pursue trade deals and new business investments, while the Republicants will try to figure out a way to ruin this country and blame it on Obama and the Dems.

      December 7, 2010 at 2:21 pm | Report abuse |
    • susie-q

      And the deficit will increase. who takes responsibility for that? Dems or Republicans?

      Guess what? It is definitely Republicans fault, but they will loudly say 'Obama didn't reduce it'.
      And those stupid 'conservatives' and 'independents' who are not even rich will shout it loud too.

      December 7, 2010 at 3:01 pm | Report abuse |
    • Sandra

      Easy answer..... the Republicans...
      Democrats can only yell Spend, Spend , Spend

      December 7, 2010 at 3:17 pm | Report abuse |
    • Bman

      Neither. The rate will continue to go up as people who have given up looking ,(not counted in the current rate) begin to start seaching again. Corporate America has purged the excess in their workforce and are reaping excessive profits. They will continue to be slow to hire until they have sucked thier current workforce dry. Then unemployment will go down. Easily 18-24 months away. Their is still way to much uncertainty in the marketplace to think otherwise.

      December 7, 2010 at 3:58 pm | Report abuse |
  14. krg

    Let's reflect..... An average doctor currently makes 200,000 a year. Let's say he is married filing jointly. He pays $51,000 in taxes. Now let's say that he pays a 40,000 malpractice insurance premium. After graduation a doctor has an average of $150,000 of debt, so he is paying probably 10,000- 20,000 a year to pay those loans off. So a guy who ate Raemen noodles for 6 years while going through medical school, is working 50+ hours a week is making about $90,000. If the tax cuts expire he'll lose another $10,000.

    December 7, 2010 at 2:02 pm | Report abuse |
    • Charlie

      Only $90,000.00 a year. Oh my! You mean he'll only be able to buy last year's BMW? What a horrible life.

      December 7, 2010 at 2:12 pm | Report abuse |
    • krg

      wow- you must not work at all to think 80,000 a year can support a family and a BMW.

      December 7, 2010 at 2:24 pm | Report abuse |
    • mgc florida

      so what abut the average guy who has college loans and is still paying them 10 years later but only makes 40,000 a year, what abut him???

      December 7, 2010 at 2:26 pm | Report abuse |
    • tommyh

      For the ramen eating doctor – allow him to deduct his college edu cost but apply the higher tax bracket.

      The first 5 years maybe tough but when he is 10 years into his career, he will likely make more than $200K a year!

      December 7, 2010 at 2:30 pm | Report abuse |
    • GM

      Since we live in a capitalist society there is not even the thought that everyone should make the same amount of money. What we have that is so precious though is that everyone has the same opportunity to make it big as everyone else! I started out in a lower middle class family and through hard work and determination have become Rich by the standards stated in these posts although I certainly don't have a million in the bank! Quite honestly I'm tired of funding all of "you" who didn't study in school and never made anything of yourself. If I could then you could too. So quit complaining about the evil rich people and get a better education and make something happen for yourself rather than waiting on the government to give you a handout!

      December 7, 2010 at 2:34 pm | Report abuse |
    • JMD

      I agree with you. I don't understand the mentality of we all need to be "equal" in pay. If you make $200k and have earned that from hard work and dedication, then so be it. Let's face it, those with higher incomes help keep the economy going. They can buy the expensive merchandise and travel which in turn, helps keep others employed.

      December 7, 2010 at 2:38 pm | Report abuse |
    • Scott

      Taxes are not paid on gross income, but rather adjusted gross income. The tax break of home ownership (which a doctor will have) reduces the gross by a good 25%. If kids enter the picture the breaks get higher. The $200,000 becomes more like $150,000 when adjusted, which equates to about $36,000 in taxes – or 18% of income. People in lower tax brackets can't afford a home and therefore don't get the tax breaks associated. Furthermore, payroll tax is only on the first $102,000 of income. So, essentially the $200,000 doctor with a home pays 21% in payroll and income taxes. A $40,000 a year worker without a home pays 20%. Where are the high earners being screwed? Same tax and one guy gets to afford his own home. The entire system comes as a package, it isn't an ala carte menu.

      December 7, 2010 at 2:40 pm | Report abuse |
    • Kyle

      Finally somebody who gets it, I thought this entire forum was welfare living dead beats in their mom's basement.

      December 7, 2010 at 2:41 pm | Report abuse |
    • Scott

      GM and JMD:
      Do you have any idea on what % of the american population don't have higher education as an option regardless of how "hard" they work. There are a lot more factors than "hard work" that got people like you and me to where we are. I worked hard yes, but I see people work hard all over who just don't have the opportunities that I had. To accuse low earners of being lazy welfare recipients is absolutely DISGUSTING!

      December 7, 2010 at 2:49 pm | Report abuse |
    • Kyle

      Scott, are you saying they couldn't have stayed in the public school system, got good grades, apply to a college, finance it with debt, graduate, get a job, live fiscally responsible, pay off their loans, and now be in a higher bracket?? Yeah...that sounds like a lot of work for lazy welfare bums. Good point, not an option.

      December 7, 2010 at 2:55 pm | Report abuse |
    • jessica

      higher education is always an option... i was born to teenagers, grew up in the system, was adopted by a family with no intent to help me with school, made enough dumb mistakes to get pregnant myself at 19, and still went to college. The government, which you want to complain about so much, provides pell grants, loans, etc to make sure you have that option. I acquired a graduate level education as a single mother working full time. Don't say there are no means, cuz hard work and motivation always helps. it may not make you a millionaire, but it will get you out of Mcdonalds.

      December 7, 2010 at 3:11 pm | Report abuse |
    • TCP

      Here's a plan. Let's make the Ramen Eating Doctor give away his services at a greatly reduced rate in the name of "Public Option Healthcare". That'll fix it. Oh, and ps, your premise is utterly flawed. If that Ramen Eating 200K per year Doctor is actually writing a check to the IRS for 51K he is a fool and needs a MUCH better CPA!

      December 7, 2010 at 3:22 pm | Report abuse |
    • jreynozo

      @Jessica
      There you go with all of that "hard work, perseverance, dedication" propaganda that you evil conservatives are always blathering on about. Don't you know that people like me (non white Hispanic) are victims and can't survive without taking some of your hard earned money?

      By the way, I grew up with two high school drop outs for parents along with three sisters. My parents moved any place they could find work. Two of my sisters are Registered Nurses, my other sister is working on a law degree, and I will be graduating this December in Computer Information Science. Because we all applied "hard work, perseverance, dedication". I am a second generation American with a dad who migrated legally from Mexico.

      Regards – John

      December 7, 2010 at 3:30 pm | Report abuse |
    • mstallk

      He can deduct the malpractice premiums on his federal tax return. Everyone without an accounting degree or understanding of taxes leave this post now.

      December 7, 2010 at 3:31 pm | Report abuse |
    • jessica

      @jreynozo

      i guess you assumed that i am white? as well as accusing me as a conservative. For the record, I am also non-white hispanic and overall, i am quite liberal.

      And your comment about how you and your siblings were raised and the fact that you all made out ok:

      "Two of my sisters are Registered Nurses, my other sister is working on a law degree, and I will be graduating this December in Computer Information Science. Because we all applied "hard work, perseverance, dedication". "

      leaves me wondering, what is your point, because you just illustrated mine...

      December 7, 2010 at 3:44 pm | Report abuse |
    • Glug Glug Glug

      boy jessica, dim bulb today? heard of sacrcasm?

      December 7, 2010 at 3:59 pm | Report abuse |
    • jessica

      @glug glug glug

      no, sarcrasm is not ione i've heard, njot has the dictionary for that matter.

      Now if you mean SARCASM, then yes, i've heard of it. I guess i missed that.

      December 7, 2010 at 4:07 pm | Report abuse |
  15. MnSC

    Let the tax breaks lapse. Better yet, let those in the upper tax brackets have their tax break and in a year if 7 million people are
    not employeed they the weathy will have to pay off the national debt by themselves and the rest of us won't have to pay taxes.

    Let the unemployment benefits lapse. The republicans/tea party etc. will help you out.

    The conservatives are blaming everything their party did to ruin this economy on the guy that wasn't president. Yet, the guy has since tried to keep this country's head above water. And would you republicans/tea party members quit with the "debt we are leaving our children" nonsense as you don't give a rat's ass about anybody but yourself.

    December 7, 2010 at 2:04 pm | Report abuse |
    • Alan M.

      Does it matter if those 7 million are employed or not? They likely pay little if any tax. The top earners already have that responsibility.

      December 7, 2010 at 5:21 pm | Report abuse |
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