SUBSCRIBE | NEWSLETTERS | MAPS | VIDEOS | BLOGS | MARKETPLACE | CONTESTS
TRY BACKPACKER FREE!
SUBSCRIBE NOW and get
2 Free Issues and 3 Free Gifts!
Full Name:
Address 1:
Address 2:
City:
State:
Zip Code:
Email: (required)
If I like it and decide to continue, I'll pay just $12.00, and receive a full one-year subscription (9 issues in all), a 73% savings off the newsstand price! If for any reason I decide not to continue, I'll write "cancel" on the invoice and owe nothing.
Your subscription includes 3 FREE downloadable booklets.
Or click here to pay now and get 2 extra issues
Offer valid in US only.


» Welcome Guest
[ Log In :: Register ]

 

[ Track This Topic :: Email This Topic :: Print this topic ]

reply to topic new topic new poll
Topic: The fiscal "cliff", unemployment benefits,, estate taxes, tax cuts and tax increases< Next Oldest | Next Newest >
 Post Number: 1
Dennis The Menace Search for posts by this member.

Avatar



Group: Members
Posts: 10736
Joined: Apr. 2007
PostIcon Posted on: Dec. 31 2012, 3:20 pm  Skip to the next post in this topic. Ignore posts   QUOTE


Some 2.1 million jobless Americans are receiving their last federal unemployment checks this week
if Congress doesn't extend the deadline to file for extended benefits.

And another 1 million who exhaust their state benefits in the first quarter of 2013 will never see
a federal unemployment payment, according to the National Employment Law Project, an advocacy group.

Lawmakers are down to the wire to extend federal jobless benefits -- of up to 47 weeks -- that Americans
can receive after exhausting their six months of state payments. The law expires on Wednesday.


http://money.cnn.com/2012/12/31/news/economy/unemployment-benefits/


Apparently they are close to a deal based on the following


The Democrats agreed to raise the income threshold for tax increases to $450,000
a year (couples) from the prior $250,000. The Republicans are insisting on $550,000
threshold. This is a massive tax cut for almost the entire country relative to the
rates that will otherwise take effect on January 1. (So agree on $500,000 already and
call it a day.)

* However, to the Republicans' chagrin, the Democrats insist on raising capital gains
and dividend taxes to 20% on households over $250,000 and reducing some of the allowable
deductions. Importantly, this, too, is a massive tax cut relative to the scheduled changes,
which would boost dividend taxes to 40% on incomes over $250,000.

* The Democrats conceded on the estate tax: They'll keep the threshold for taxable estates
at $5 million, with a 35% rate over that level. This, again, is a massive tax cut over current
law, in which the threshold will drop to $1 million with a much higher rate.

* The Democrats' offer would permanently protect middle-class households from the Alternative
Minimum Tax. No details on how this would work.

* On the spending side, the Democrats' offer would delay the "sequester" (automatic spending
cuts) until 2015. This would cost an estimated $200 billion. But it would avoid the cuts to
the military budget that the Republicans are so desperate to avoid.

* The Democrats would also extend unemployment benefits for a year, extend farm subsidies for
a year, and avoid a 27% cut in Medicare payments to doctors. The Republicans say they want
offsets to these with spending cuts.



http://finance.yahoo.com/news....45.html


--------------
politics is the art of taking advantage of mass stupidity and ignorance
Offline
Top of Page Profile Contact Info 
 Post Number: 2
Dennis The Menace Search for posts by this member.

Avatar



Group: Members
Posts: 10736
Joined: Apr. 2007
PostIcon Posted on: Dec. 31 2012, 3:22 pm Skip to the previous post in this topic. Skip to the next post in this topic. Ignore posts   QUOTE

I don't know about the rest of the forum posters but I find it disgusting that in order to
get a deal on unemployment benefits(especially those who have been unemployed a long time and
thus in a far far far more vulnerable state than those making over 250K and those who would be
affected by the estate tax. Many time over more vulnerable) Republicans must get a deal that
raises the income threshold for tax increases to at least $450,000(if not higher) and on the
estate tax(which Republican propagandists call the "death tax").  Its not the fact that in order
to pass something compromise is needed but the mentality behind holding unemployment benefits
hostage just to extract something for people who not only aren't struggling but are being
extracted IMO simply because are part of the Republican donor class.

But its not just a matter of moral/ethics but economics. Unemployment benefits are many many
times more stimulative because like Food stamps(even more stimulative) and unlike so many tax
cuts(cuts on payroll tax cuts being somewhat of an exception), they are not saved but spent/used
immediately to get money circulated in the economy as fast possible. This isn't theory. There
has been research on this by non-partisan credible economist and organizations. For example Moody's
Mark Zandi, who was one of McCain's economic advisors for his 2008 campaign,



http://www.epi.org/publication/webfeatures_snapshots_20081022/

The CBO came to a similar conclusion


in brief, CBO found the following: A temporary increase in aid to the unemployed would have the
largest effect on the economy per dollar of budgetary cost. A temporary reduction in payroll taxes
paid by employers would also have a large bang-for-the-buck, as it would both increase demand for
goods and services and provide a direct incentive for additional hiring. Temporary expensing of
business investment and providing aid to states would have smaller effects, and yet smaller effects
would arise from a temporary increase in infrastructure investment and a temporary across-the-board
reduction in income taxes.


http://www.cbo.gov/publication/25106

Tax policy center too came to a similar conclusion in regard to Unemployment benefits

http://www.taxpolicycenter.org/briefin....ive.cfm

So to conclude unemployment benefits are both ethically and morally justified as well as being
the stimulative stimulus(along with with food stamps) yet look what must be extracted to even
consider extending unemployment benefits. Another sad commentary on our political process.


--------------
politics is the art of taking advantage of mass stupidity and ignorance
Offline
Top of Page Profile Contact Info 
 Post Number: 3
JimInMD Search for posts by this member.

Avatar



Group: Members
Posts: 3978
Joined: Feb. 2011
PostIcon Posted on: Dec. 31 2012, 3:37 pm Skip to the previous post in this topic. Skip to the next post in this topic. Ignore posts   QUOTE

I'd be thrilled if we can get the AMT fixed for good

--------------
"Your number one philosophy for personal security should be a life long commitment to avoidance, deterrence, and de-escalation."

The 3 Stupids Rule:

Don’t go to stupid places, with stupid people, to do stupid things.
Offline
Top of Page Profile Contact Info 
 Post Number: 4
Dennis The Menace Search for posts by this member.

Avatar



Group: Members
Posts: 10736
Joined: Apr. 2007
PostIcon Posted on: Dec. 31 2012, 3:49 pm Skip to the previous post in this topic. Skip to the next post in this topic. Ignore posts   QUOTE

yep

AMT is another important thing that needs to be done


--------------
politics is the art of taking advantage of mass stupidity and ignorance
Offline
Top of Page Profile Contact Info 
 Post Number: 5
ol-zeke Search for posts by this member.
Clear Creek
Avatar



Group: Members
Posts: 13064
Joined: Sep. 2002
PostIcon Posted on: Dec. 31 2012, 3:50 pm Skip to the previous post in this topic. Skip to the next post in this topic. Ignore posts   QUOTE

What would fixing the AMT mean?  Setting some figure and adjusting it for inflation annually?  How about $150K for singles, and $200K for couples?  After all, this was meant to prevent taxpayers from taking so many deductions as to offset their income beyond some "normal" level.  We need to find some way to pick an income level and then tie it to a consumer price index of some sort, and let it adjust itself for about 20 years before we tinker with it again.  

--------------
Everything I know, I learned by doing it wrong at least twice.

"I would rather wake up in the middle of nowhere than in any city on earth."  Steve McQueen
Offline
Top of Page Profile Contact Info 
 Post Number: 6
Old Frank Search for posts by this member.

Avatar



Group: Members
Posts: 1213
Joined: Sep. 2007
PostIcon Posted on: Dec. 31 2012, 4:03 pm Skip to the previous post in this topic.  Ignore posts   QUOTE

Very interesting post.  Sources seem to be relatively unbiased.

And, not very intuitive conclusions, I would have guessed differently. I probably would have come close to turning the chart upside down.


--------------
My favorite compliment: "GrandPa, I've seen other old men, and their faces are a whole lot cruddier than yours is".
Offline
Top of Page Profile Contact Info 
5 replies since Dec. 31 2012, 3:20 pm < Next Oldest | Next Newest >

[ Track This Topic :: Email This Topic :: Print this topic ]


 
reply to topic new topic new poll

» Quick Reply The fiscal "cliff", unemployment benefits,
iB Code Buttons
You are posting as:

Do you wish to enable your signature for this post?
Do you wish to enable emoticons for this post?
Track this topic
View All Emoticons
View iB Code



Get 2 FREE Trial Issues and 3 FREE GIFTS
Survival Skills 101 • Eat Better
The Best Trails in America
YES! Please send me my FREE trial issues of Backpacker
and my 3 FREE downloadable booklets.
Full Name:
City:
Address 1:
Zip Code:
State:
Address 2:
Email (required):
Free trial offer valid for US subscribers only. Canadian subscriptions | International subscriptions