Friday, December 10, 2010
Who's Going To Work for the Working Man
After the Mid-Term success of voting out numerous Socialist Democrats and then Pelosi immediately trying to nullify our votes in the future by passing the "Dream Act", the answer to Who's Going to Work for the Working Man is the Senate who stopped the Dream Act.
Keep the heat on.
Tuesday, September 7, 2010
Remove Obama and Holder from Office and Prosecute Them
As Holder and Obama use all means necessary to go after Law Enforcement Agencies who attempt to enforce the law protecting American Citizens against illegal drug cartel and illegal allien activity, it is clear that these two individuals must be removed from office and prosecuted for aiding and abetting criminal activity.
Monday, August 30, 2010
Socialists: Adding Insult to Injury
The Socialist Democrats know who pays the taxes. It's the people who work. The people who make up the Tea Party. They are the ones the Socialist Democrats are going to hammer with taxes. When the tax payer complains, they call the tax payers Tea Baggers, the Mob at the Town Hall meetings.
All I can say is, Socialist Democrats are fools. They are very foolish for doing so. For without the tax payer, they are nothing. And the tax payer is not about to sit back and take what the Socialist Democrat tries to impose on them.
All I can say is, Socialist Democrats are fools. They are very foolish for doing so. For without the tax payer, they are nothing. And the tax payer is not about to sit back and take what the Socialist Democrat tries to impose on them.
Wednesday, June 2, 2010
PC: The Theology of the Liberal and MSM
What drives Main Stream Media, Barack Obama the President of the United States , Eric Holder and the Justice Department of the United States and the Democratic Party? "Political Correctness". Not the U.S. Constitution. Not the laws on the books. PC is the Theology of today's so called "elite" in power in America.
We have been warned for years now. Here is what others have said during the last 20-40 years leading up to this, the most PC Administration in American history.
~ “The notion of political correctness has ignited controversy across the land. And although the movement arises from the laudable desire to sweep away the debris of racism and sexism and hatred, it replaces old prejudices with new ones. It declares certain topics off-limits, certain expression off-limits, even certain gestures off-limits.
“What began as a crusade for civility has soured into a cause of conflict and even censorship”~
President George H. W. Bush , 1991, University of Michigan
~"A great historian says the story of the human race and of nations is always the same. It is from slavery to struggle, to freedom, to dedication, to prosperity, then to indolence and indifference and debt and default and dole and scarcity and poverty and back to slavery. And we’re seeing that cycle today in our own and beloved America. There is a disintegration and a devastating attack against the free system that has blessed our forefathers, for which they paid their life, and has blessed us and brought us to a prosperity beyond any which the world has ever known.
And we are departing from those principles, and are now looking with favor upon the coercion of the individual and upon the building of a socialist welfare state, and upon the concentration of power in the hands of the few..."~
Dr. W. A. Criswell March3, 1976
The Obama Administration is the first administration that no longer adheres to the laws on the books. They go only in accordance to what can be defined today as the laws of Political Correctness. This is the dangerous, catastrophic challenge facing America at this moment.
Tuesday, May 11, 2010
New 1099 Law - Foundation For VAT
Obamacare – stalking horse for a VAT?
By: Mark Tapscott
Editorial Page Editor
05/06/10 3:26 PM EDT
Slowly but surely the word is spreading that buried deep within Obamacare’s 2,400 pages are all kinds of unpleasant surprises for individual Americans and their families as they seek medical care and insurance coverage.
But did you know Obamacare is also a stalking horse for imposing a European-style value-added tax (VAT)on Americans? CNN’s Money desk is raising alarms, though not of an approaching VAT kind:
“But under the new rules, if a freelance designer buys a new iMac from the Apple Store, they’ll have to send Apple a 1099. A laundromat that buys soap each week from a local distributor will have to send the supplier a 1099 at the end of the year tallying up their purchases.
“The bill makes two key changes to how 1099s are used. First, it expands their scope by using them to track payments not only for services but also for tangible goods. Plus, it requires that 1099s be issued not just to individuals, but also to corporations. Taken together, the two seemingly small changes will require millions of additional forms to be sent out.”
Curiously enough, though, the CNN writer doesn’t seem to understand what this change in tax law is really all about, settling instead for the government spin that it was needed to help generate new revenue to pay for Obamacare:
“Why did these tax code revisions get included in a health-care reform bill? Welcome to Washington. The idea seems to be that using 1099 forms to capture unreported income will generate more government revenue and help offset the cost of the health bill.”
The IRS estimates that the federal government “loses” about $300 billion in annual revenues as a result of business transactions that aren’t reported and therefore don’t boost the amount of taxable income that is reported. “Using 1099s to document millions of transactions that now go un-tracked is one way to begin to close the gap,” according to CNN.
But there’s the essential fact that puts this hidden surprise in Obamacare into perspective – The 1099 can be used to track and report to government millions more transactions that go into the creation, marketing and selling of all products and services. It thus becomes the paper trail for the government’s imposition and collection of a VAT.
With a VAT, government gets to tax a good or service at every stage from its production to it sale, but to do so, it first has to track all of the constituent transactions. Once that is possible, it opens up vast new opportunities for government to collect taxes to help pay for government benefits. That’s why the European welfare states all went to VATs decades ago.
It’s also a key reason none of the European economies grow as quickly as the free market economies in North America and Asia, or create new jobs as quickly, or generate entrepreneurial opportunities.
For more analysis of the Obama administration’s drive for a VAT, see last week’s Examiner editorial on the tax-hike charade.
By: Mark Tapscott
Editorial Page Editor
05/06/10 3:26 PM EDT
Slowly but surely the word is spreading that buried deep within Obamacare’s 2,400 pages are all kinds of unpleasant surprises for individual Americans and their families as they seek medical care and insurance coverage.
But did you know Obamacare is also a stalking horse for imposing a European-style value-added tax (VAT)on Americans? CNN’s Money desk is raising alarms, though not of an approaching VAT kind:
“But under the new rules, if a freelance designer buys a new iMac from the Apple Store, they’ll have to send Apple a 1099. A laundromat that buys soap each week from a local distributor will have to send the supplier a 1099 at the end of the year tallying up their purchases.
“The bill makes two key changes to how 1099s are used. First, it expands their scope by using them to track payments not only for services but also for tangible goods. Plus, it requires that 1099s be issued not just to individuals, but also to corporations. Taken together, the two seemingly small changes will require millions of additional forms to be sent out.”
Curiously enough, though, the CNN writer doesn’t seem to understand what this change in tax law is really all about, settling instead for the government spin that it was needed to help generate new revenue to pay for Obamacare:
“Why did these tax code revisions get included in a health-care reform bill? Welcome to Washington. The idea seems to be that using 1099 forms to capture unreported income will generate more government revenue and help offset the cost of the health bill.”
The IRS estimates that the federal government “loses” about $300 billion in annual revenues as a result of business transactions that aren’t reported and therefore don’t boost the amount of taxable income that is reported. “Using 1099s to document millions of transactions that now go un-tracked is one way to begin to close the gap,” according to CNN.
But there’s the essential fact that puts this hidden surprise in Obamacare into perspective – The 1099 can be used to track and report to government millions more transactions that go into the creation, marketing and selling of all products and services. It thus becomes the paper trail for the government’s imposition and collection of a VAT.
With a VAT, government gets to tax a good or service at every stage from its production to it sale, but to do so, it first has to track all of the constituent transactions. Once that is possible, it opens up vast new opportunities for government to collect taxes to help pay for government benefits. That’s why the European welfare states all went to VATs decades ago.
It’s also a key reason none of the European economies grow as quickly as the free market economies in North America and Asia, or create new jobs as quickly, or generate entrepreneurial opportunities.
For more analysis of the Obama administration’s drive for a VAT, see last week’s Examiner editorial on the tax-hike charade.
Wednesday, May 5, 2010
Costly IRS Mandate Slipped into Health Bill
By Chris Edwards at Cato
Most people know about the individual mandate in the new health care bill, but the bill contained another mandate that could be far more costly.
A few wording changes to the tax code’s section 6041 regarding 1099 reporting were slipped into the 2000-page health legislation. The changes will force millions of businesses to issue hundreds of millions, perhaps billions, of additional IRS Form 1099s every year. It appears to be a costly, anti-business nightmare.
Under current law, businesses are required to issue 1099s in a limited set of situations, such as when paying outside consultants. The health care bill includes a vast expansion in this information reporting requirement in an attempt to raise revenue for an increasingly rapacious Congress.
In a recent summary, tax information firm RIA notes the types of transactions covered by the new 1099 rules:
The 2010 Health Care Act adds “amounts in consideration for property” (Code Sec. 6041(a) as amended by 2010 Health Care Act §9006(b)(1)) and “gross proceeds” (Code Sec. 6041(a) as amended by 2010 Health Care Act §9006(b)(2)) to the pre-2010 Health Care Act categories of payments for which an information return to IRS will be required if the $600 aggregate payment threshold is met in a tax year for any one payee. Thus, Congress says that for payments made after 2011, the term “payments” includes gross proceeds paid in consideration for property or services.
Basically, businesses will have to issue 1099s whenever they do more than $600 of business with another entity in a year. For the $14 trillion U.S. economy, that’s a hell of a lot of 1099s. When a business buys a $1,000 used car, it will have to gather information on the seller and mail 1099s to the seller and the IRS. When a small shop owner pays her rent, she will have to send a 1099 to the landlord and IRS. Recipients of the vast flood of these forms will have to match them with existing accounting records. There will be huge numbers of errors and mismatches, which will probably generate many costly battles with the IRS.
Tax CPA Chris Hesse of LeMaster Daniels tells me:
Under the health legislation, the IRS could be receiving billions of more documents. Under current law, businesses send Forms 1099 for payments of rent, interest, dividends, and non-employee services when such payments are to entities other than corporations. Under the new law, businesses will be required to send a 1099 to other businesses for virtually all purchases. And for the first time, 1099s are to be sent to corporations. This is a huge new imposition on American business, costing the private economy much more than any additional tax that the IRS might collect as a result.
There appears to have been little discussion before this damaging mandate was slipped into the health bill and rammed through Congress, but a few business groups did raise concerns. Here’s what the Air Conditioner Contractors of America said:
The House bill would extend the Form 1099 filing requirement to ALL vendors (including corporate) to which they pay more than $600 annually for services or property. Consider all the payments a small business makes in the course of business, paying for things such as computers, software, office supplies, and fuel to services, including janitorial services, coffee services, and package delivery services.
In order to file all these 1099s, you’ll need to collect the necessary information from all your service providers. In order to comply with the law, you would have to get a Taxpayer Information Number or TIN from the business. If the vendor does not supply you with a TIN, you are obligated to withhold on your payments.
Private transactions are the core of a market economy, and the source of America’s growth and prosperity. Now the federal government is imposing a vast new web of red tape on perhaps billions of these growth-generating private exchanges.
For what purpose? So the spendthrift Congress can shake a few extra bucks out of private industry? The business sector is the generator of America’s high living standards, but most federal legislators just see it as a kitty to be raided or a cow to be milked dry.
I’m stunned that there wasn’t a broader debate before such a costly mandate was enacted. If it goes into effect, it will waste vast quantities of human effort in filling out forms, reworking computer systems, collecting and organizing data, and fighting the IRS. The struggling American economy can’t afford anymore suffocating tax regulations. This mandate is a giant deadweight loss. It should be repealed.
Tuesday, April 27, 2010
Obama's Censorship Campaign
The most important tool that Obama knows he must have in place to gain power is through censorship. Censorship is critical for Obama to be able to add weight to his quest for power to "fundamentally change" America. His "public" appearances are invitation only. No opposing views are allowed during these highly orchestrated appearances. His party, the now "Socialist" Democratic Party, control the content presented to the American people through Main Stream Media. Barack Hussein Obama has personally attacked Fox News, Rush Limbaugh, Shawn Hannity and others that oppose his policies, and has encouraged others to isolate them.
All of this is new in America. A nation that is accustomed to Free Speech, is now for the first time in this nation's history, seeing the attempted radical implementation of censorship across the board. Obama will talk one talk, but walks a completely different walk. The walk down the path of V.I. Linen, Joseph Stalin, and others with the intent of forcing the taking of control of key areas of both society and the personal lives of all Americans.
Under Stalin Marxism-Leninism was upheld as a "scientific" doctrine, and thus served as the yardstick by which truth was measured. Anything which ran counter to that doctrine, including social scientific reports, fictional works, and historical accounts, were deemed "unscientific," "irrelevant," "bourgeois," or otherwise unworthy of being published. It should be noted that Marx himself opposed censorship as "bad, even when it delivers good products." Yet under Stalin, the need for extensive censorship was underscored by alleged presence of enemies of the state, whose noxious ideas had to be weeded out. It was, overall, a paternalistic rationale, in which state censors decided which material could safely be absorbed by the presumably simpler and weaker minds of the masses.
The nature of the Cold War, particularly during Stalin's time, would well justify some degree of censorship by the Soviet Socialist Government. But the excessive and arbitrary nature of censorship under Stalin reveals his pathological suspicion and distrust of the masses...
Soviet Socialists first took control of all "Health Care" and then took control of banks, the same path that Obama and the Socialist Democrats are following.
From the days of Obama's campaign to today during his "rule", control of how he is seen and what he says, even to the point of having to read directly from a teleprompter, is all a part of the selling of an ideology, over and above anything else, including the U.S. Constitution. For the purpose of all of this excessive orchestration is for one purpose, and that is Socialism first, the party second, and the “masses” are to be last.
Thursday, April 1, 2010
Constitutional Attorney Reviews The Health Care Law
A retired Constitutional lawyer has read the entire proposed healthcare bill. Read his conclusions and pass this on as you wish. This is stunning!
The Truth About the Health Care Bills
Michael Connelly, Ret. Constitutional Attorney
Well, I have done it! I have read the entire text of proposed House Bill 3200: The Affordable Health Care Choices Act of 2009. I studied it with particular emphasis from my area of expertise, constitutional law. I was frankly concerned that parts of the proposed law that were being discussed might be unconstitutional. What I found was far worse than what I had heard or expected.
To begin with, much of what has been said about the law and its implications is in fact true, despite what the Democrats and the media are saying. The law does provide for rationing of health care, particularly where senior citizens and other classes of citizens are involved, free health care for illegal immigrants, free abortion services, and probably forced participation in abortions by members of the medical profession.
The Bill will also eventually force private insurance companies out of business, and put everyone into a government run system. All decisions about personal health care will ultimately be made by federal bureaucrats, and most of them will not be health care professionals. Hospital admissions, payments to physicians, and allocations of necessary medical devices will be strictly controlled by the government.
However, as scary as all of that is, it just scratches the surface. In fact, I have concluded that this legislation really has no intention of providing affordable health care choices. Instead it is a convenient cover for the most massive transfer of power to the Executive Branch of government that has ever occurred, or even been contemplated If this law or a similar one is adopted, major portions of the Constitution of the United States will effectively have been destroyed.
The first thing to go will be the masterfully crafted balance of power between the Executive, Legislative, and Judicial branches of the U.S. Government. The Congress will be transferring to the Obama Administration authority in a number of different areas over the lives of the American people, and the businesses they own.
The irony is that the Congress doesn't have any authority to legislate in most of those areas to begin with! I defy anyone to read the text of the U.S. Constitution and find any authority granted to the members of Congress to regulate health care.
This legislation also provides for access, by the appointees of the Obama administration, of all of your personal healthcare direct violation of the specific provisions of the 4th Amendment to the Constitution information, your personal financial information, and the information of your employer, physician, and hospital. All of this is a protecting against unreasonable searches and seizures. You can also forget about the right to privacy. That will have been legislated into oblivion regardless of what the 3rd and 4th Amendments may provide...
If you decide not to have healthcare insurance, or if you have private insurance that is not deemed acceptable to the Health Choices Administrator appointed by Obama, there will be a tax imposed on you. It is called a tax instead of a fine because of the intent to avoid application of the due process clause of the 5th Amendment. However, that doesn't work because since there is nothing in the law that allows you to contest or appeal the imposition of the tax, it is definitely depriving someone of property without the due process of law.
So, there are three of those pesky amendments that the far left hate so much, out the original ten in the Bill of Rights, that are effectively nullified by this law It doesn't stop there though.
The 9th Amendment that provides: The enumeration in the Constitution, of certain rights, shall not be construed to deny or disparage others retained by the people;
The 10th Amendment states: The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are preserved to the States respectively, or to the people. Under the provisions of this piece of Congressional handiwork neither the people nor the states are going to have any rights or powers at all in many areas that once were theirs to control.
I could write many more pages about this legislation, but I think you get the idea. This is not about health care; it is about seizing power and limiting rights... Article 6 of the Constitution requires the members of both houses of Congress to "be bound by oath or affirmation to support the Constitution." If I was a member of Congress I would not be able to vote for this legislation or anything like it, without feeling I was violating that sacred oath or affirmation. If I voted for it anyway, I would hope the American people would hold me accountable.
For those who might doubt the nature of this threat, I suggest they consult the source, the US Constitution, and Bill of Rights. There you can see exactly what we are about to have taken from us.
Michael Connelly
Retired attorney,
Constitutional Law Instructor
Carrollton , Texas
Monday, March 15, 2010
$500 to $600 Per Month That LOWER Middle Class Families Will Pay
For a short while this morning an in-depth story was on www.yahoo.com before it was yanked that exposed the cost of health care to those who will have to pay for the cost of the program. A lower middle class family (husband and wife) making $66,000 per year will be required to pay $6,600 per year to the government to pay for the Obama health care program. That is over and above rising personal taxes that the government is now requiring American Tax Payers to pay. All current taxes and health care taxes will bring at a minimum a full 50% tax at the beginning on each family in America. As socialist health care costs increase due to the unionization of the industry by Obama's friends in the Unions during the years that will follow, the 50% tax burden on each family will not begin to cover the costs. Nationalization of American industry will then begin to cover "health care".
Monday, January 18, 2010
Per Diem Deductions: Another Way Congress Stealthily Raises 2010 Taxes on Workers
I was helping a business last night with their year end W2's when I went to the IRS on-line website to look at the specifics regarding Per Diem and 1099 rules. Last year, employees could deduct meals, hotel stays, mileage, etc., while working over 50 miles from home and staying at hotels during an out of town job. One of the expense deductions is the amount the employee can deduct per mile. In 2009 that deduction was 55 cents a mile. The amount an employee can deduct per mile in 2010 is now only 50 cents per mile. In other words, the amount workers can deduct for mileage when doing out of town work for a company is 10% less. That is a big drop. Obama and the Democrats wasted no time last year in changing the tax laws, making it harder for you to deduct work expenses so that they can tax more of your income.
Tuesday, January 12, 2010
Congress Raises 2010 Taxes Substantially
Congress Tinkers with Withholding Tax Tables for 2010
by SusanAnne Hiller
Recently, retired military have received e-mail messages notifying them of a withholding tax increase. The email states:
NO ANNUAL COST OF LIVING ADJUSTMENT (COLA) WILL BE ADDED TO MILITARY RETIRED PAY IN 2010.
DUE TO RECENT LEGISLATION YOUR FEDERAL WITHHOLDING TAX HAS CHANGED.
After much investigating and several discussions with the IRS, it appears the Democrats have played a “cash-flow trick” on working Americans and are taking more out of American’s paychecks across the board–all the while touting the Making Work Pay tax credit.
The trick, when looking at the new withholding tax tables for 2010 as compared to post-stimulus 2009, buries an increase in federal withholding taxes–for all income categories–basically giving the government an interest-free loan until current year taxes are filed next year. Some would blame the increase in withholding on the Making Work Pay tax credit being spread out over 12 months as compared to 2009, which was only over 9 months, but this would be impossible as some middle class wage categories carry an increase in the withholding tax of over $200 per pay period.
Unlike the middle class wage earners, who are going to see huge amounts taken out of their paychecks, unless they increase their exemptions on their W4 form, it’s an increase that most wouldn’t even notice–$10 or $20 in some cases. Here are some of the “highlights” of the new 2010 withholding tables:
1.) Congress has lowered the threshold to capture more wages that qualify to owe taxes–across the board. For example, in 2009 the withholding tax threshold began at weekly single wage levels of $138. In 2010, that same wage is lowered to $116. In short, instead of the taxable wage starting at $138, it is now down to $116–which changes the income threshold and taxes even poorer Americans.
For married couples, the change in the weekly base taxable wage changes from $303 in 2009 down to $264 in 2010. These lower wage thresholds can be seen throughout the new withholding charts for weekly, biweekly, semi-monthly, monthly, quarterly, semiannual, and annual, as well as daily and miscellaneous pay periods.
This across-the-board reduction in the initial wage threshold increases the number of wage earners who would have to pay taxes.
2.) Instead of seven (7) wage categories, there are now nine (9) wage categories. The new structure allows for direct taxation on the middle class with these wages broken out into smaller categories. The direct hit on the middle class withholding taxes can be seen on all of the new tables. Additionally, the IRS could not explain these changes.
Let’s look at the actual numbers for one category and compare them from 2009 to 2010:
2009 Biweekly, Single, Payroll Period, after subtracting withholding allowances
Not over $276: $0 in taxes
Over $276 – $400: 10% payroll tax
Over $400 – $1,392: $12.40 plus 15% of excess over $400
Over $1,392 – $2,559: $161.20 plus 25% of excess over $1,392
Over $2,559 – $6,677: $452.95 plus 28% of excess over $2,559 (Notice the large salary range)
Over $6,677 – $14,423: $1,605.99 plus 33% of excess over $6,677
$14,423: pays $4,162.17 plus 35% of excess over $14,423
Let’s look at the new numbers for 2010 Biweekly, Single, Payroll Period, after subtracting withholding allowances
Not over $233: $0 in taxes
Over $233 – $401: 10% payroll tax
Over $401 – $1,387: $16.80 plus 15% of excess over $401
Over $1,387 – $2,604: $164.70 plus 25% of excess over $1,387
Over $2,604 – $3,248: $468.95 plus 27% of excess over $2,604 (Notice the large salary range is gone)
Over $3,248 – $3,373: $642.83 plus 30% of excess over $3,248 (Notice the substantial increase and 30% tax rate on these wages)
Over $3,373 – $6,688: $680.33 plus 28% of excess over $3,373
$14,450: pays $4,169.99 plus 35% of excess over $14,450
These patterns of additional withholding can be seen throughout the new charts for the 2010 tax year for single and married persons. It appears that everyone earning a paycheck is affected, not just retired military; social security payments will remain the same.
Why would the Democrats tinker with the withholding taxes and, ultimately, cause more stress on Americans and businesses? Why would the Democrats create more wage categories and deliberately target the middle class with a huge withholding increase and 30% tax rate? Are the Democrats trying to backfill the deficits they created in 2009? Because taxpayers will have overpaid the federal government payroll taxes, will they be eligible to get back this additional withholding money in a tax refund when filing in 2011? Do taxpayers in the hardest-hit wage categories even realize that their paychecks are going to be significantly lower, unless they make the necessary changes?
Maybe there is a good explanation for the increase in the withholding taxes from 2009 through 2010, but I remain skeptical, because inherently, Democrats do not have the capacity to reduce taxes and typically make up the revenue somehow.
Get your calculators out and you do the math. Go here for 2009; start on page 4. Go here for 2010; start on page 39.
And you should remember this and the fact that House and Senate Republicans united against the stimulus bill, which may have been the trigger to all of this. And Obama and Congress should remember this from December 21, 2009:
Responsibility. Really?
by SusanAnne Hiller
Recently, retired military have received e-mail messages notifying them of a withholding tax increase. The email states:
NO ANNUAL COST OF LIVING ADJUSTMENT (COLA) WILL BE ADDED TO MILITARY RETIRED PAY IN 2010.
DUE TO RECENT LEGISLATION YOUR FEDERAL WITHHOLDING TAX HAS CHANGED.
After much investigating and several discussions with the IRS, it appears the Democrats have played a “cash-flow trick” on working Americans and are taking more out of American’s paychecks across the board–all the while touting the Making Work Pay tax credit.
The trick, when looking at the new withholding tax tables for 2010 as compared to post-stimulus 2009, buries an increase in federal withholding taxes–for all income categories–basically giving the government an interest-free loan until current year taxes are filed next year. Some would blame the increase in withholding on the Making Work Pay tax credit being spread out over 12 months as compared to 2009, which was only over 9 months, but this would be impossible as some middle class wage categories carry an increase in the withholding tax of over $200 per pay period.
Unlike the middle class wage earners, who are going to see huge amounts taken out of their paychecks, unless they increase their exemptions on their W4 form, it’s an increase that most wouldn’t even notice–$10 or $20 in some cases. Here are some of the “highlights” of the new 2010 withholding tables:
1.) Congress has lowered the threshold to capture more wages that qualify to owe taxes–across the board. For example, in 2009 the withholding tax threshold began at weekly single wage levels of $138. In 2010, that same wage is lowered to $116. In short, instead of the taxable wage starting at $138, it is now down to $116–which changes the income threshold and taxes even poorer Americans.
For married couples, the change in the weekly base taxable wage changes from $303 in 2009 down to $264 in 2010. These lower wage thresholds can be seen throughout the new withholding charts for weekly, biweekly, semi-monthly, monthly, quarterly, semiannual, and annual, as well as daily and miscellaneous pay periods.
This across-the-board reduction in the initial wage threshold increases the number of wage earners who would have to pay taxes.
2.) Instead of seven (7) wage categories, there are now nine (9) wage categories. The new structure allows for direct taxation on the middle class with these wages broken out into smaller categories. The direct hit on the middle class withholding taxes can be seen on all of the new tables. Additionally, the IRS could not explain these changes.
Let’s look at the actual numbers for one category and compare them from 2009 to 2010:
2009 Biweekly, Single, Payroll Period, after subtracting withholding allowances
Not over $276: $0 in taxes
Over $276 – $400: 10% payroll tax
Over $400 – $1,392: $12.40 plus 15% of excess over $400
Over $1,392 – $2,559: $161.20 plus 25% of excess over $1,392
Over $2,559 – $6,677: $452.95 plus 28% of excess over $2,559 (Notice the large salary range)
Over $6,677 – $14,423: $1,605.99 plus 33% of excess over $6,677
$14,423: pays $4,162.17 plus 35% of excess over $14,423
Let’s look at the new numbers for 2010 Biweekly, Single, Payroll Period, after subtracting withholding allowances
Not over $233: $0 in taxes
Over $233 – $401: 10% payroll tax
Over $401 – $1,387: $16.80 plus 15% of excess over $401
Over $1,387 – $2,604: $164.70 plus 25% of excess over $1,387
Over $2,604 – $3,248: $468.95 plus 27% of excess over $2,604 (Notice the large salary range is gone)
Over $3,248 – $3,373: $642.83 plus 30% of excess over $3,248 (Notice the substantial increase and 30% tax rate on these wages)
Over $3,373 – $6,688: $680.33 plus 28% of excess over $3,373
$14,450: pays $4,169.99 plus 35% of excess over $14,450
These patterns of additional withholding can be seen throughout the new charts for the 2010 tax year for single and married persons. It appears that everyone earning a paycheck is affected, not just retired military; social security payments will remain the same.
Why would the Democrats tinker with the withholding taxes and, ultimately, cause more stress on Americans and businesses? Why would the Democrats create more wage categories and deliberately target the middle class with a huge withholding increase and 30% tax rate? Are the Democrats trying to backfill the deficits they created in 2009? Because taxpayers will have overpaid the federal government payroll taxes, will they be eligible to get back this additional withholding money in a tax refund when filing in 2011? Do taxpayers in the hardest-hit wage categories even realize that their paychecks are going to be significantly lower, unless they make the necessary changes?
Maybe there is a good explanation for the increase in the withholding taxes from 2009 through 2010, but I remain skeptical, because inherently, Democrats do not have the capacity to reduce taxes and typically make up the revenue somehow.
Get your calculators out and you do the math. Go here for 2009; start on page 4. Go here for 2010; start on page 39.
And you should remember this and the fact that House and Senate Republicans united against the stimulus bill, which may have been the trigger to all of this. And Obama and Congress should remember this from December 21, 2009:
After years of irresponsibility, we are once again taking responsibility for every dollar we spend the same way families do. It’s true that what I’ve described today will not be enough to get us out of our fiscal mess by itself. We face a deficit that will take some tough decisions in the next year’s budget and in years to come to get under control. But these changes will save the American people billions of dollars. And they’ll help to put in place a government that’s more efficient and effective, that wastes less money on no-bid contracts, that’s cutting bureaucracy and harnessing technology, that’s more fiscally responsible and that better serve the American taxpayer.”
~President ObamaResponsibility. Really?
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