Bill Clinton’s tax increase of 1993 is the culprit for millions of taxpayers.
When President Clinton and the Democrat Congress raised the rates on the AMT, in 1993, they also failed to index for inflation. Only 300,000 taxpayers, paid the AMT then.
If we were to go back to the rates prior to the tax increase, only 2.6 million taxpayers would be subject to the tax, next year, according to the Joint Tax Committee, (JTC).
Most of those 2.6 million are in the top 2%. Among the other 20 million plus, most are in the broad middle class, some well down the ladder in the middle class.
Beware of Democratic Spin
Since the Bush tax cuts, middle class families have saved an average of $2,000 a year, despite the never-ending Democrat falsehood of tax cuts for the rich.
However, because the 1993 tax increase failed to index for inflation, the AMT will now put the bite on millions of taxpayers for whom it was never intended.
The spin by Democrats, attempts to portray the Bush tax cuts, including the millions saved by the middle class, as having something to do with why more taxpayers will be paying the AMT.
If congress takes no action, those who become subject to the AMT for the first time, will still pay a lower tax because of the Bush tax cuts, after the addition of the AMT.
When Democrat spin starts, which it surely will, don’t be deceived.
Recall, that right up until his election, Bill Clinton promised a middle class tax cut.
Immediately upon taking office, he fulfilled that promise by raising gas taxes, income tax rates, Medicare payroll taxes, and taxes on many social security recipients.
If the Democratic congress would roll back the AMT rates to the pre-Clinton years, and index those rates, about 20 million taxpayers, mostly middle class would escape a tax that was never intended for their level of purchasing power.
The original AMT was instituted due to Democrat hysteria in 1969 upon learning that 21 millionaires had paid no tax.
We’ve heard reference many times to the law of unintended consequences. Most of these laws come from feel good Democrat proposals that postulate about victims and inequality.
Democrats made many promises to the middle class in 2006; will actions speak louder than words?
Mobility scooters may soon have an increase in their prices after a change in their tax classifications to leisure vehicles by Brussels.
This new decision will puts mobility scooters in the same class as gold buggies and racing cars. This will result in extra import duties payable for mobility scooters made outside the European Union.
Age Concern have urged ministers to fight the move, which is likely to add £200 to the average £2,500 cost of the scooters, as importers pass on the duty charge.
Manufacturers also fear that it may also lead to a change in their zero rating for VAT.
“Classifying all mobility scooters as leisure vehicles is ludicrous. They can be a vital tool to keep older people independent and mobile. A mobility scooter can make the difference between someone staying in their home or ending up in a care home.
“If scooters are to be made affordable for those who need them, the UK Government must put pressure on the EU to totally rethink this policy." Gordon Lishman, director-general of Age Concern.
Both Michael Mcnesby Mcnesby & Jason Tate are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Michael Mcnesby Mcnesby has sinced written about articles on various topics from Global Warming, Recent Graduate and tax. Mick McNesby is a former tax advisor, consultant and negotiator. He was a frequent guest on political talk shows in Atlantic City, N.J., discussing the benefits of the lower cost of government. He can be visited at. Michael Mcnesby Mcnesby's top article generates over 4400 views. to your Favourites.
Jason Tate has sinced written about articles on various topics from Aging, tax and Shopping. . Jason Tate's top article generates over 880 views. to your Favourites.