[Vision2020] Fw: [Spam 6.40] LIKE A GATHERING STORM

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From: "Crapo News Release (Crapo)" newsclips at crapo.senate.gov
Date: Wed, 04 Jun 2008 10:08:22 -0700
To: 
Subject: [Spam 6.40] LIKE A GATHERING STORM

FOR RELEASE 	      		CONTACT:           Susan Wheeler (202)
224-5150
Week of June 8, 2008	                           Laura Thurston
Goodroe (202) 224-7500

			LIKE A GATHERING STORM...
	Guest opinion submitted by Idaho Senator Mike Crapo

It's coming.   In less than the time it takes to get a bachelor's
degree, serve a military tour or complete high school, taxpayers earning
$30,000 to $80,000 will see increases in their tax liability from $1,600
to $2,300.  At the end of 2010, the tax relief enacted in 2001 and 2003
will expire, absent changes to current tax policy by Congress.  The
writing is on the wall-those tax cuts will very likely not be made
permanent next year or the following.  Some taxpayers are already
starting to prepare for this financial disaster, much as they would for
natural disasters.  Planning for this includes visiting with personal
and business tax and financial advisors on the upcoming changes to the
U.S. tax code.  

The tax increases coming in tax season 2011 mean a nearly 200 percent
tax increase for families.  
	* Due, in part, to the reinstatement of the marriage penalty
tax, 48 million 	married couples will see an average tax increase
of $3,007.
	* On average, 12 million single women with dependents will see
their taxes go 	up $1,091.
	* About 18 million seniors will see an average tax increase of
$2,181.
	* A whopping 27 million small business owners (the backbone of
Idaho's 	economy) will see an average tax increase of $4,066.
	
If Congress continues on its current path, we can expect the following:
The death tax will be fully reinstated (the maximum tax rate will revert
from 45 percent in 2007-2009 to 55 percent).  The maximum tax rates on
dividends will increase from the current 15 percent to 39.6 percent.
The rate on long term capital gains will jump from 15 to 20 percent.
It's relevant to point out that almost 75 percent of those who benefit
from the reduction in the top marginal tax rate are small business
owners; not only will the tax rate increases hit this bedrock of our
economy very hard in three short years, the uncertainty plays havoc
today, compromising vital business expansion that results in investment
in human capital (jobs), research and development.  

Some in Congress want to see an increase in tax revenue; never mind that
income tax revenue over the past five to seven years has gone against
all prior predictions of catastrophic losses, actually bringing record
tax revenue to the federal coffers.  Some in Congress must believe that
adding six million Americans to the income tax roles and removing
eligibility for the child tax credit for low-income families with one or
two children will result in increased tax revenues.  Many economists
disagree:  absent the tax relief of 2001 and 2003, the 60 percent of
federal income taxes currently paid by the top five percent of income
earners would drop to 57 percent.  I could be wrong, but I suspect that
this tax burden shift won't be very popular with a large number of
potential lower income American taxpayers.  

Another critical point that must be made is this:  Much of the tax
relief that American families and businesses have experienced over the
past five to seven years is in the areas of investment.  Investment is,
simply, planning for the future.  When you tax this, you invoke a
penalty on planning ahead.  People-middle income Americans-will be
penalized for saving and preparing, in their personal life and in their
small businesses.  

Come 2011, Americans, particularly families and small business owners,
would do well to be prepared for this devastating hit to their
hard-earned income.  Get ready:  The time is coming for the federal
government to tell YOU the best way to spend even more of YOUR
money-much more.  

WORD COUNT:  599

To link directly to this news release, please go to:
http://crapo.senate.gov/media/newsreleases/release_full.cfm?id=298729&&

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Subject: [Spam 6.40] LIKE A GATHERING STORM
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