Jul 11, 2012 No Comments ›› Toro520
Excerpted from CNS News:
(CNSNews.com) – President Barack Obama today proposed allowing the income tax rates enacted in the Bush tax cuts of the last decade to expire at the end of this year for people earning more than $250,000 and at the end of next year for everyone else.
Under current law, the lower tax rates will expire at the end of 2012. Under Obama’s proposal, they will expire at the end of 2012 for those making more than $250,000 and at the end of 2013 for Americans making less than $250,000.
“At the same time, most people agree, we should not raise taxes on middle class families or small businesses, not when so many folks are just trying to get by, when so many folks are digging themselves out of the hole that was created by this great recession that we had and at a time when the recovery is still fragile,” Obama said at the White House on Monday.
“That’s why I’m calling on Congress to extend the tax cuts for the 98 percent of Americans who make less than $250,000 for another year,” he said.
This tax proposal differs from the one Obama called for six months ago in his 2013 budget. In that document, Obama said that the lower Bush tax rates for Americans making less than $250,000 per year should be made permanent.
His proposal today does not make the current lower tax rates permanent–it gives those making under $250,000 only one more year at those rates before they would automatically snap up to the higher rates that prevailed before Bush cut them.
The tax increases Obama proposes for 2014 could impact hundreds of thousands of independent and small businesses.