The president commented at a rally earlier this week that he was bemused when he saw the Tea Part tax protests “You would think they’d be saying thank you, that’s what you’d think”. Meaning that the protesters should have thanked him for the payroll tax relief that was given to wage earners of an average few hundred dollars factored over the past year in their paychecks. Actually I would venture a guess that most of the Tea Party protesters took the time to research the tsunami of new and proposed taxes coming down the road for them in 2011.
Last Wednesday Senate Budget Committee Chairman Kent Conrad (D-North Dakota ) Announced a budget plan to cut the budget deficit from this years almost Trillion and a Half dollars to about 550 Billion in 2014. The budget plan could threaten approx 30 million US taxpayers with increases of over $3,500.00 a year or more because they will be caught up in the AMT (Alternate Minimum Tax) since this tax is not indexed for inflation and the usual past yearly fixes are currently not being considered. Congress will have to look hard to find an additional $100 Billion a year in revenue to achieve the stated budget deficit reduction results they promised.
Also the Bush tax cuts enacted in 2001 and 2003 are due to expire at the end of this year And even though the President has hinted that he will try to extend these cuts for people Making under $200,000 a year but the pressure to let them expire for everyone will be hudge by his party to pay for new social spending.
It also seems the dreaded Cap & Trade tax scheme might be coming alive again Like some cheesy zombie from some Hollywood B Movie. Some congressional this could be advanced and passed through the reconciliation process like the recently passed healthcare reform legislation to bypass any Republican filibuster. The taxes in this proposed legislation would affect approx 95% of the US population. The smallest estimates from the CBO (Congressional Budget Office) puts the yearly hit on taxpayers of approx between $700 -1500.00 a year, other private analysts put it over $2,000.00 a year. This tax would also be regressive targeting the middle & lower classes disproportionately. It would also affect the Midwest and south most in terms of huge Electric rate increases since on average 80% these areas get power from coal plants. Even in 2007 then Senator Obama stated in an interview “Electric Rates Would Necessarily Skyrocket under my (Cap & Trade) Plan”. The Northeast (Including this writer) would be hit hard because of the huge increases in home heating oil. Some estimates put a gallon of gasoline under this plan to rise from an average of $3.00 per Gallon (April 2010) to Approx $7.00 a Gallon in 2016.
The proposed bill would also trample on States rights by setting up Federally Mandated Inspections of homes that are up for sale. Under the all existing homes sales are conditioned upon an energy audit and a new energy rating assessment and energy labeling program. People like myself who have older homes will find it very costly at the least and extremely difficult at best to sell their home, this would decrease the value all homes. This is another way the Federal Government to in my opinion Unconstitutionally abuse the “Commerce Clause” to extend its power. On new homes being built new mandatory regulations and civil penalties for homebuilders. It will require that every state accept current costly building codes that are currently in affect in CA. If a state refuses to enact these codes the federal government may assess penalties. This bill not only is ludicrous on its economic impact but usurps local & state rights.
I think the Tea Partiers know what’s coming down the road and this President is annoyed They are calling him out on it.
Just my opinion-D.B.