Skip to main content

I'm a jumper, here's why.

1. I think that the only thing the GOP wants is:
a. Low capital gains tax rates
b. Low dividend rates
c. No estate taxes
d. Low corporate tax rates
e. eliminating regulations
f. Low individual tax rates

(in that order)

That's really the only thing they care about. The real true only thing that the people who give serious money care about. Everything else, abortion, religion, gay marriage, regulations, the deficit, reforming entitlements, etc. etc. It's window dressing. The only thing the Adelsons and the Kochs are about is the corporatocracy.

So what happens when the Bush tax cuts expire on December 31?

Well, everything resets to pre 2001 rates.

The Bush Tax Cuts: How did they change the tax code?

The tax cuts enacted between 2001 and 2006 contain a host of large and small changes to the tax code that phase in at different rates and expire at different times. The tax cuts of 2001, 2003, 2004, 2005, and 2006 built on one another, with many of the bills passed after 2001 serving to extend provisions in earlier bills. Most provisions are now scheduled to expire at the end of 2010.

The 2001 tax cut was especially sweeping. Its two most prominent changes were a phased-in reduction in income tax rates and a reduction and eventual repeal (at the beginning of 2010) of the estate tax. It also provided a wide range of tax breaks for education, families with children, married couples, and contributions to certain kinds of savings accounts.
The 2002 tax cut addressed a different part of the tax code, significantly but temporarily reducing the tax burden on new business investments. Its main provision has already expired.
The 2003 bill cut taxes on dividends and capital gains and accelerated the schedule for phasing in most of the other tax cuts enacted in 2001.
The 2004 tax cut extended various provisions from the 2001 and 2003 tax cuts that were scheduled to expire before 2010, so that they remain in force through 2010.
The 2005 tax cuts indexed the alternative minimum tax for inflation for one year ("patched" it, in tax parlance), eliminated the income restrictions on Roth Individual Retirement Accounts (IRAs) in 2010, and extended the reduced rates on dividend and capital gains income.
The 2006 tax cuts made certain aspects of the 2001 tax act permanent, including the raised annual contribution limits to IRAs, tax-free withdrawals from qualified tuition savings accounts, and the savers’ credit, and permanently extended rules governing education-based tax credits.

So what is most important to the Republicans? I say let's jump of the cliff and see what they're willing to trade to get back up.

My guess is that they will trade tax rates for the wealthy for the estate tax and low capital gains rates, because the real money boys don't earn money by working, they make their money make money.

EMAIL TO A FRIEND X
Your Email has been sent.
You must add at least one tag to this diary before publishing it.

Add keywords that describe this diary. Separate multiple keywords with commas.
Tagging tips - Search For Tags - Browse For Tags

?

More Tagging tips:

A tag is a way to search for this diary. If someone is searching for "Barack Obama," is this a diary they'd be trying to find?

Use a person's full name, without any title. Senator Obama may become President Obama, and Michelle Obama might run for office.

If your diary covers an election or elected official, use election tags, which are generally the state abbreviation followed by the office. CA-01 is the first district House seat. CA-Sen covers both senate races. NY-GOV covers the New York governor's race.

Tags do not compound: that is, "education reform" is a completely different tag from "education". A tag like "reform" alone is probably not meaningful.

Consider if one or more of these tags fits your diary: Civil Rights, Community, Congress, Culture, Economy, Education, Elections, Energy, Environment, Health Care, International, Labor, Law, Media, Meta, National Security, Science, Transportation, or White House. If your diary is specific to a state, consider adding the state (California, Texas, etc). Keep in mind, though, that there are many wonderful and important diaries that don't fit in any of these tags. Don't worry if yours doesn't.

You can add a private note to this diary when hotlisting it:
Are you sure you want to remove this diary from your hotlist?
Are you sure you want to remove your recommendation? You can only recommend a diary once, so you will not be able to re-recommend it afterwards.
Rescue this diary, and add a note:
Are you sure you want to remove this diary from Rescue?
Choose where to republish this diary. The diary will be added to the queue for that group. Publish it from the queue to make it appear.

You must be a member of a group to use this feature.

Add a quick update to your diary without changing the diary itself:
Are you sure you want to remove this diary?
(The diary will be removed from the site and returned to your drafts for further editing.)
(The diary will be removed.)
Are you sure you want to save these changes to the published diary?

Comment Preferences

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site