Taxes: A Question for Kerry Supporters

[ddollevoet]

During the second debate, Kerry was asked to look into the camera and say that he will not raise taxes on households making less than $200K per year.

Ten minutes later he was talking about repealling the Bush tax cut which was implemented to help the middle class.

Quite simply, as a middle class american, won't I pay more taxes under Kerry than under Bush?

[GWB]

Yes. Kerry means more taxes for the middle class.

The word for the Day:

LIBERAL

[MelchyBeau]

He was talking about repealing the tax cut for those making over 200k. The middle class will not be affected by it.

Melch

[adios]

[ QUOTE ]
He was talking about repealing the tax cut for those making over 200k. The middle class will not be affected by it.

[/ QUOTE ]

There are no households in the middle class making over 200K? Where are the boundaries btw between rich, middle class and poor households?

[elwoodblues]

[ QUOTE ]
Where are the boundaries btw between rich, middle class and poor households?

[/ QUOTE ]

Good question. Without agreed upon boundaries, the right will always say that Kerry will tax the middle class - the left will always say that Bush's tax play affected the wealthy disproportionately.

[texaspimp]

It baffles me that so many people claim that the middle class will not be affected!

As a small business owner, if my taxes go up, I have one of two options. One is to raise prices. The second is to cut expenses. The number one business expense is usually labor. If I decide to fire one or more people, just to keep my net income static, did that affect the middle class? I guess we would have to asked the people I laid off.

Secondly, does anyone remember the exchange about healthcare during the second debate. I admit that I am paraphrasing, but Kerry was talking about not raising taxes and increasing healthcare benefits and lowering healthcare costs. He specifically mentioned taking catastrophic cases out of the system and paying for those cases with a "federal fund". Did something change since I went to school or is a "federal fund" still OUR TAXES????? Wanna bet that our taxes don't rise to fund the "federal fund"?

Good luck in the future!

[elwoodblues]

As a small business owner who chose the structure of his business, you have made a decision that your business income = your personal income. You didn't have to make that choice. It's kind of disingenuous to now claim, "but wait, it isn't really my personal income..." If you don't want your business income to count as personal income, change the structure of your business.

[adios]

[ QUOTE ]
As a small business owner who chose the structure of his business, you have made a decision that your business income = your personal income. You didn't have to make that choice.

[/ QUOTE ]

No but that may be the best choice income wise from a tax perspective for him i.e. after taxes are paid this choice may provide the most income for him.

[Daliman]

[ QUOTE ]
It baffles me that so many people claim that the middle class will not be affected!

As a small business owner, if my taxes go up, I have one of two options. One is to raise prices. The second is to cut expenses. The number one business expense is usually labor. If I decide to fire one or more people, just to keep my net income static, did that affect the middle class? I guess we would have to asked the people I laid off.

Secondly, does anyone remember the exchange about healthcare during the second debate. I admit that I am paraphrasing, but Kerry was talking about not raising taxes and increasing healthcare benefits and lowering healthcare costs. He specifically mentioned taking catastrophic cases out of the system and paying for those cases with a "federal fund". Did something change since I went to school or is a "federal fund" still OUR TAXES????? Wanna bet that our taxes don't rise to fund the "federal fund"?

Good luck in the future!

[/ QUOTE ]

Ok, let's say you make 300k a year in profit at your company, a good chunk of change. Now, under Kerry, that will equal $3,800 more in taxes, which you were paying before anyways. Did you hire MORE people or cut prices when Bush lowered your taxes? Cut prices;hell no. Hire more people? Doubtful, since his cuts couldnt have saved you enough to hire much more than extremely part-time positions unless you make WELL over 200K, which means you shouldn't be bitching anyways.

I love how Bush keeps saying how 3.8% tax aboe the current level over 200k and ONLY the $$$ made over 200k costs american smallbusiness jobs, but when it really comes down to it, if you are making significantly more than 200k, you're not much of a "small" business.

What this all comes out as is, "Well, i make 500k a year, so if Kerry is re-elected, i'll pay an additional $11,600 in taxes that I was paying 2 years ago anyways. To make up for my shortfall in income, I will fire one of my single-mother employees who works 40 hours a week making $6.00 an hour. God bless America"

Doesn't sound very American, does it?

And I don't even want to get STARTED on all the income lost by reservists who are among those in the guard ijacked into this BS war. I know 2 of them myself who are small business owners, one whose business failed since his deployment, and another whose business is struggling. Great job, GWB.

[sam h]

[ QUOTE ]
There are no households in the middle class making over 200K? Where are the boundaries btw between rich, middle class and poor households?

[/ QUOTE ]

The boundaries are subjective. But since in 2001 (last year I can quickly find data), the 95th percentile for households fell around 150K, it would be pretty difficult to argue that 200K was middle class.

Of course, lots of people - like my parents for instance - make that much and still think of themselves as middle or upper middle class. But that's just because they have trouble accepting the fact that they are in the upper class.