21 | December | 2012 | The Homa Files

Archive for December 21st, 2012

To grow the economy and employment, revamp the payroll tax system.

December 21, 2012

It seems that all of the fiscal cliff attention is obsessively focused on upping income taxes (oops, I meant raising “revenues”).

Specifically, ideas are being floated to change marginal rates, eliminate deductions and close loopholes. All without dampening employment.

Yeah, right.

If the goal is really to raise tax revenue and boost employment, I suggest that the Feds look someplace else – at the payroll tax system.

For more background details, see our prior post Background: Here’s a way to raise tax revenues & create jobs.

Keep reading for the details …

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Encore: Those %#@! Bush Tax Cuts

December 21, 2012

This Homa FIles brief was originally posted July 23, 2008. It’s long, … loaded with with pivotal facts.

Since expiration of the Bush tax cuts looks increasingly likely, I thought they’re worth another look — just as background

On the 2008 campaign trail, candidate Obama broad-brushed all of the Bush tax cuts as “for the wealthy”.

Now, OMB estimates that extending the Bush tax cuts in their entirety would cost $3.7 trillion over 10 years … of that amount over 80% goes to folks making less than $200,000 – $250,000 annually.

In other words, over 80% of the Bush tax cuts for the wealthy went to Obama-defined “non-wealthy” folks — some of whom pay income taxes, and many of whom don’t.

* * * * *

Summary: We’ve all heard the rants about the cuts in the top bracket rate, capital gains rate, dividend taxes, and estate taxes.

But, when was the last time that your heard anybody mention the new 10% bracket, larger and refundable child and earned income credits, negative income taxes, elimination of the marriage tax penalty, or expanded college benefits?

Here are the details of the Bush tax cuts …

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