Dave already mentioned this, but here's some more detail on what happened with the votes to let tax rates rise in the Senate today. Sen. Jim DeMint, R-S.C., put two amendments to a vote:(1) a permanent extension of the current marginal income tax rates with instructions to offset as necessary through spending reduction
and
(2) a permanent extension of individual income tax rates for small businesses with instructions to offset as necessary through spending reductions. Both amendments went down by a vote of 58-42 earlier today. A statement from DeMint's office notes how significant these impending tax increases are:By defeating DeMint's amendments today, Democrats approved tax increases on all marginal tax brackets that will rise significantly on individuals, families, and small business to their pre-2001 levels, which were five tax rates of 15%, 28%, 31%, 36%, and 39.6%. According to analysis by the Wall Street Journal, an individual in South Carolina making $40,000 next year will pay about $400 more in federal income taxes. A South Carolina married couple earning a combined $80,000 will see their federal income tax rise by nearly $2,200. A married couple earning $160,000 next year could pay $5,500 more to Washington.
Also, the Obama tax hikes are set to significantly increase taxes on small businesses earning more than $200,000. The IRS has noted that most small businesses file taxes as individuals making more than $200,000 per year, with around 30 million tax returns reporting small business income in 2008. According to the Small Business Administration, small businesses employ over half of the nation's private sector workforce, more than 60 million Americans. 21.6 million of those jobs are provided by small businesses with less than 20 employees. Also worth mentioning here: Democrats already voted to raise the capital gains tax and the death tax in June and July, respectively. |