AEIdeas

The public policy blog of the American Enterprise Institute

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Discussion: (19 comments)

  1. Jon Murphy

    Honestly, I am not as worried about the capital gains and corporate tax hikes as I am about the planned FICA and AMT hikes.

    FICA will go up 2% at the end of the year, meaning an additional $1,001 in taxes for the average middle-class worker. Also, Medicare Tax is due to rise 0.9% (or $450 per year). Additionally, the Alternative Minimum Tax due will be some $3,700. Considering the average tax return is $3,000, it means tax payers are going to be scrounging for cash. Basically, the Middle Class will have some $5,151 in additional taxes to pay this year.

    1. Jon Murphy

      Sorry, that should be “In 2013″, not “this year.

      1. displaced maneiac

        fiscal year (started in September)

  2. Max Planck

    Everyone (besides Boehner and Jimmy P.) acknowledges that the Ernst study is a crock, and why are we listening to them anyway as an arbiter in this debate?

    BTW, Jon, FICA is not “going up.” That was a temporary goose in the midst of a recession, a gift no one could keep. It’s high time the funding was restored.

    1. Jon Murphy

      Yes. Yes it is going up. The rate was cut, and now it will rise again. That is a tax going up. Doesn’t matter if the cut was temporary. The rate is rising. The average working man will have to pay $1,001 more in FICA next year than he did this year. I don’t care how you want to sugar coat it: it’s a tax hike. Whether or not you think higher taxes on the Middle Class are needed, it is a tax hike. Plain and simple.

    2. Everyone acknowledges that maxie boy is a walking crock except maxie boy

      Then again maxie boy can’t seem to figure out that taxation is theft

      1. Jon Murphy

        Apparently he can’t tell when one number is larger than another, either.

    3. ‘…a crock’? How so? And, ‘…everyone’?
      A link would be helpful here.
      Please provide details. Thanks.

    4. Is it your point, then, that tax rates in other developed countries are actually higher?
      Or that tax rates don’t matter?

  3. Todd Mason

    Last time I looked, the S&P 500 companies were holding $1 trillion in cash. So which is the problem: capital formation or stirring up enough demand to put it to work?

    1. James Richard Tyrer

      Perhaps they are also considering what their after tax return on investment will be.

  4. Since Boehner is preoccupied with trying to roll over for Obama on income taxes and Obama is too cunning to actually accept yes for an answer, we can pretty much rest assured that every tax cut scheduled to expire will do so.

  5. Anyone else catch this CNBC story?

    Wealthy Dump Assets Amid Worries About Going Over ‘Cliff’

    Fearing an increase in capital gains and dividend taxes, many of the rich are unloading stocks, businesses and homes before the end of the year.

    Wealth advisors say that with capital-gains taxes potentially going to 25 percent from 15 percent, and other possible increases in the dividend tax, estate tax and other taxes, many clients are selling now to save millions in taxes.‘…

    I wonder what the ramifications of this might be?

    1. Bryan Farris

      Mickey Mouse-branded lightsabers, for one…

      1. Mickey Mouse-branded lightsabers, for one“…

        And that means what farris?

  6. We need to get rid of those dastardly tax loop holes for the rich

    Ha! Ha! Ha! Ha!

  7. patriot1775

    Flat tax, Flat tax, Flat tax. Need I say more

  8. Ed Schofield

    As a business owner, I can tell you what has had the economy stalled for the last 6 years. From the moment the Dems took control of both houses of Congress in 1006, they have promised to eliminate the “Bush tax cuts” (all of them), with the result that business owners cannot know with any certainty what their taxes (business costs) will be, even in the short term. It is now November 13th, 2012, and I do not know what my taxes will be just six weeks from now. How can I plan? How can I hire anyone if I have no idea what my costs will be. The Dems, still in control, have promised to raise my taxes. I would be stupid to expand and hire under those conditions.

    1. Ed Schofield

      Sorry. Should be 2006, not 1006.

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