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Yesterday, Feb. 1, at 4:00 pm, Reuters published an article on the back door taxes on the middle class imposed by Obama. White House minions protested, so at 8:07 pm last night, pusillanimous Reuters withdrew the article, saying: ”The story Backdoor taxes to hit middle class has been withdrawn. A replacement story will run later in the week.” See here.
This is exactly the sort of anti-democratic anti-liberty measures that took place in totalitarian systems, Nazi and Communist. The government’s censorship of the press/media was conducted via pre- as well as post-publication censorship. In the latter case, after something is published, the government objects and brings pressure upon the news medium to retract the “offensive” story. The Reuters case is an example of the latter.
Here is the article:
"By Terri Cullen – Mon Feb 1, 4:09 pm ET
NEW YORK (Reuters.com) –The Obama administration’s plan to cut more than $1 trillion from the deficit over the next decade relies heavily on so-called backdoor tax increases that will result in a bigger tax bill for middle-class families.
In the 2010 budget tabled by President Barack Obama on Monday, the White House wants to let billions of dollars in tax breaks expire by the end of the year — effectively a tax hike by stealth.
While the administration is focusing its proposal on eliminating tax breaks for individuals who earn $250,000 a year or more, middle-class families will face a slew of these backdoor increases.
The targeted tax provisions were enacted under the Bush administration’s Economic Growth and Tax Relief Reconciliation Act of 2001. Among other things, the law lowered individual tax rates, slashed taxes on capital gains and dividends, and steadily scaled back the estate tax to zero in 2010.
If the provisions are allowed to expire on December 31, the top-tier personal income tax rate will rise to 39.6 percent from 35 percent. But lower-income families will pay more as well: the 25 percent tax bracket will revert back to 28 percent; the 28 percent bracket will increase to 31 percent; and the 33 percent bracket will increase to 36 percent. The special 10 percent bracket is eliminated.
Investors will pay more on their earnings next year as well, with the tax on dividends jumping to 39.6 percent from 15 percent and the capital-gains tax increasing to 20 percent from 15 percent. The estate tax is eliminated this year, but it will return in 2011 — though there has been talk about reinstating the death tax sooner.
Millions of middle-class households already may be facing higher taxes in 2010 because Congress has failed to extend tax breaks that expired on January 1, most notably a “patch” that limited the impact of the alternative minimum tax. The AMT, initially designed to prevent the very rich from avoiding income taxes, was never indexed for inflation. Now the tax is affecting millions of middle-income households, but lawmakers have been reluctant to repeal it because it has become a key source of revenue.
Without annual legislation to renew the patch this year, the AMT could affect an estimated 25 million taxpayers with incomes as low as $33,750 (or $45,000 for joint filers). Even if the patch is extended to last year’s levels, the tax will hit American families that can hardly be considered wealthy — the AMT exemption for 2009 was $46,700 for singles and $70,950 for married couples filing jointly.
Middle-class families also will find fewer tax breaks available to them in 2010 if other popular tax provisions are allowed to expire. Among them:
Sales tax: Who but the rich would spend more in sales tax than state and local tax? It does not target the middle class.
College tuition: This was put into place with the stimulus bill and may expire after 2 years. Let me make sure I am being clear: Obama's stimulus put this tax credit into play for 2009 and 2010.
Unemployment benefits tax: Started by Reagan, suspended by Obama in 2009 for 2009 income. Again, part of Obama's response to the economic mess left by his predecessor.
I'm glad the administration spoke up about these kind of lies and misrepresentations. Yah, freedom of speech is wonderful but enough with the lies and propaganda. The article was poorly written, slanted, and at best lied through omission. This is not a news article. It is propaganda.
NJ