- Oct 12, 2009
- Reaction score
- New Jersey
- Political Leaning
- Libertarian - Right
Reuters said:June 14 (Reuters) - A Democratic plan to extend benefits for the jobless that would also more than double the tax rate for investment fund managers will likely get its first test on Wednesday in the U.S. Senate.
Majority Leader Harry Reid on Monday moved toward an initial vote on a $126 billion bill to extend unemployment insurance that ran out last month for hundreds of thousands of out-of-work Americans and renew a set of popular business tax breaks.
Under Senate rules, the vote on whether to limit debate on the legislation will likely occur Wednesday. Sixty votes are needed out of the 100-member Senate.
Over the next 10 years, the Senate proposal would increase direct spending by $126 billion and add $22 billion in funding to prevent a 21 percent payment cut to doctors in the Medicare program, the Congressional Budget Office estimated.
The total package adds about $80 billion to the deficit over that period, according to CBO.
The Senate version would tax 65 percent of fund managers' income at the higher rate. A tougher House version would tax 75 percent at ordinary income rates.
Currently, they only pay a 15 percent capital gains tax rate on this income, while ordinary income is taxed at a maximum of 35 percent. The top tax rate is set to rise to 39.6 percent in 2011, the year this legislation would take effect.
Republicans have offered a stripped-down alternative that would extend unemployment insurance for 30 days, but excludes the controversial tax-raising provisions. It also excludes a provision extending tax-exempt Build America Bonds, created in the stimulus plan last year.
Note: Bolded area's are my emphasis.
First, this is the famed "doc fix" President Obama has been asking for. This will:
1. Increase the deficit spending
2. Raise the highest tax rate from 35% to 39.6%
3. Will affect a majority of fund managers (ie. Wall Street) and increase capital gains taxes (ie. Populist "tax the rich")
4. Prevents a 21% payment cut to doctors payments to Medicare (Medicare which is approaching insolvency)
5. Will extend healthcare insurance to out of work Americans (think COBRA) by using the higher taxes to fund said insurance
- Is extending benefits the answer or is creating "jobs" what's being lost in this bill?
- Is this plan of "taxing the rich" going to further jobless rates or make the unemployed even more dependent on government?
- What is the exit strategy for the Federal budget, the unsustainable deficit and how does this bill help stop the U.S. from fiscally driving off the cliff?
Are we losing sight of the trees through the forest?