The mammoth (1400 plus pages) stimulus agreement is out. Among several arguments for those supporting it is the idea that there is about 30% in tax cuts within the bill. Yet, a close examination of these so called tax cuts shows just how miniscule it all is.
1) The tax rebate.
It will be $400 per individual $800 per couple for anyone making $70,000 and less. It gets better though. They rebate will start happening in June. Starting in June each individual that is eligible will see a $13 reduction in their tax burden per week. This will continue until the end of the year when that reduction is $8 per week. That will continue until the $400 is paid out. For anyone to write this atrocity without laughter is itself a laugh. This so called tax cut is nothing more than window dressing to get the public to believe the Democrats are at all serious about tax cuts. Not only is this tax cut $400 but it is split over about six months and works out to $50 monthly.
Let's put this in perspective. President Obama has called this the worst crisis since the Great Depression. He has proclaimed that without swift action this will turn into a catastrophe. Then, he turns around and makes policy that everyone making less than $70,000 yearly receives an extra $13 weekly for a few months. Then, that $13 weekly turns into $8 weekly until it runs out. It runs out until all these folks receive a grand total of $400. Does the language match the Dollar amounts?
2) The AMT
This is in fact not even a tax cut at all. All it is, is a stop gap to make sure that millions of middle class tax payers aren't hit with the Alternative Minimum Tax. There is no tax cut here. All that's here is a measure to make sure that millions aren't whacked with a tax increase they don't expect.
3) The housing credit
This was supposed to be $15,000 for anyone purchasing a property this year. Instead, there is only a $8000 credit for first time homebuyers, and this credit goes away at the end of August.
4) The car credit.
For car buyers, they can deduct the sales tax on their income tax. In other words, the sales tax on cars this year is subsidized.
That, folks, is the sum total of the so called tax cuts in this bill.
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