The Bush Tax Cut....

[korkscru]

Hello all GREEKCHATTERS (Sisterfriends and brotherfriends)!!

I've been listening to the news and reading the papers concerning this tax cut that has been approved. According to Bush this cut is supposed to benefit the American citizens in the long run. According to the new SPEAKER OF THE HOUSE, this tax cut will ultimately do much damage.

Now I'm not a Bush fan (we can go on and on about this TEXAS PUPPET), but I AM an advocate for having more money in my wallet, if feasible. I've got mixed thoughts about this thing. I guess that it's because I see the pros and cons of THIS particular issue (And guess what? American Government and Economics were NOT my strongest subjects--in high school or college).

What are you all thinking about this and how do you think that we (specifically African-Americans and the poor and middle classes) will be effected by it in the future?

[Kimmie1913]

I have not yet taken the time to look at the tax cut in detail. What I have read indicates there will be a $300 refund to single people who filed 2000 taxes, a $500 refund to single parents and a $600 refund for married couples. There is an increase in credit for education anf a cut in the estate tax. There is also a gradula increase in the contribution to IRA's and I believe 401k's. The other biggest piece of this is a reduction in the tax rate for the HIGHEST tax bracket. That is the aspect of he plan that concerns me. Okay so everyone gets a little cas back this year. Next year the cut would be a cut for that tax bracket. The education credit will hel[ middle class aprents. But the estate tax cut and the cut in the highest tax bracket does not seemingly serve serve the larger American population.

Anyone out there more versed on this tax cut?

[korkscru]

This is what I meant when I said that I see the pros and cons of this particular issue, Kimmie1913. I agree that although the population will get a little "cash back" (and I'm ALL for that), I'm wondering who is benefiting from this cut?

Now I was able to pull up this "Tax Cut Checklist" on TIME.COM. After reading this my impressions are that, yes, the WEALTHY are going to benefit from this cut rather than any of the other population.

My insticts tell me that Bush and his "maggots" certainly make this cut seem like peaches and cream (right now). But in the future, there will be a lot of regrets.

The Senator from Vermont who just left the Republican party was quoted as saying that he knew that Bush would be a "one-term" president. I believed from the beginning that he bullied and cheated his way into the presidency (with the help of many).

In the long run (as a matter of fact it has ALREADY begun), I believe that people will see Bush for who he REALLY is.

[Sterling]

The long term effects of this plan is horrific. After his term of office(please let it only be 1 term) the deficit will be even more in the trillions. The budget that Clinton was successful in balancing, will be unbalanced once again. I pray that before we run to cash that check, we ask God to give us an extra blessing in the coming years for the hardship we will have to endure.(smile)

[Kimmie1913]

Tha is what I felt. That the money back was a ploy to blind the masses to the real evil being done with this whole thing. And, the money currently coming in to support to government is what is effectively being cut. I am not an advocate of big government but I am an advocate of government actually doing what it is supposed to do. I think there is too much waste in government spending BUT simply cutting the money without imporoving the way the spending occurs is not exactlty solving the problem either.

This is just one more excample of the Bush agenda of sucking up to the rich cronies who got his trfling @$$ in office.

[Kimmie1913]

Here is some info on the tax cut from CNN.com

The compromise tax cut worked out by House and Senate:

• cuts the top income tax rate from 39.6 to 35 percent
• doubles the $500 child tax credit
• eliminates the federal tax on large estates
• provides marriage penalty tax relief
• gives $300 rebates for single taxpayers and $600 for joint filers
• raises contribution limits for IRAs from $2,000 to $5,000
• raises contribution limits for 401(k) plans from $10,500 to $15,000.


"An analysis of the bill by the accounting firm of Deloitte & Touche found that a married couple with no children and $60,000 in taxable income will find only $100 of tax relief -- after their initial $600 refund this year -- over the next 10 years.

A married couple with two children, $400,000 of taxable income and average itemized deductions, however, will pay $13,989 less -- 11 percent -- in 2010 than they did this year. At $1 million in income, the tax burden will drop $47,557, or 13.3 percent. "

Read the whole article at http://www.cnn.com/2001/ALLPOLITICS/...cut/index.html



[This message has been edited by Kimmie1913 (edited May 31, 2001).]

[12dn94dst]

This Article is from CNN-AllPolitics.com: http://www.cnn.com/2001/ALLPOLITICS/06/07/tax.primer/

Here is a primer on the federal tax rebate that will result from the tax cut signed into law Thursday by President Bush. Information comes from congressional offices and the U.S. Department of the Treasury.

Who will get the rebate?
Every American who filed a 2000 tax return is eligible. Those who had absolutely no tax liability (their tax bill was 0, or they got a rebate from the government) will not get a rebate check. In order to get the full amount of the rebate, a single taxpayer must have had at least $6,000 in taxable income for 2000. A married couple filing jointly must have had at least $12,000 in taxable income for 2000 in order to get the full amount. (see below)

When will people get the check?
The government will start sending out checks in late July. They will send out nearly 100 million (98 million) checks. The checks will go out over a 10-week period. The Treasury Department will use the last two digits of people's Social Security numbers to determine the order of mailing. Those with 00 at the end of their SS number will be first in line. Those with 99 will be last to get their checks. All of the checks to regular filers will go out before the end of this fiscal year, September 30. For late 2000 filers, there will be some checks that go out after September until December.

Tax rebate schedule (Source: Internal Revenue Service)

Date mailed Last 2 digits of Social Security #
============ =================
July 20..................00-09
July 27..................10-19
August 3...............20-29
August 10.............30-39
August 17.............40-49
August 24.............50-59
August 31.............60-69
September 7..........70-79
September 14.........80-89
September 21.........90-99


How much will the rebate check be?
Most singles will receive about $300. Single parents will receive about $500. Couples will receive about $600. But some taxpayers will receive less. These figures are MAXIMUM amounts. No one will get more than these amounts.

How is it calculated?
The rebate is equal to 5 percent of a person's taxable income for the year 2000 ... with ceilings set at the figures above ($300 for singles, $500 for single parents, $600 for couples). That's why some people will get a little less. For example, someone whose taxable income (after deductions, etc.) gets down to $5,000 will only get a $250 check. And again, anyone with ZERO tax liability will get no check.

Why is this check coming?
The tax bill the president is signing immediately creates a bottom income tax bracket of 10 percent, effective retroactively to the beginning of this year. That means the first $6,000 of a single's income or the first $12,000 of a couple's income is suddenly going to be taxed at 10 percent (instead of the old 15 percent rate). Because this change is retroactive, the government will owe everybody who already paid some of those taxes (through withholdings from their paychecks from January until now) some money back. The Treasury Department points out that this is not officially a "rebate" ... it's an "advance payment" to taxpayers of money they would have gotten back from the government as a rebate when they filed their tax returns next April (for 2001).

When will people hear from the IRS?
In mid-July, the Treasury Department says every taxpayer will get a letter informing them of the check that's coming.

What do people have to do to get their check?
Nothing. As long as a taxpayer filed a 2000 return, he is eligible. The Treasury Department says no one should call the IRS or the Treasury Department. They say the government knows where to find you.

What about late filers?
Those who filed for an extension and haven't filed a return for 2000 yet better hurry, according to a Treasury spokesperson. The sooner they file, the sooner they'll get the tax credit and therefore a rebate check. If they don't receive a check before December 2001, they would be able to apply the credit to next year's tax return, when they file next April.

What if you've moved since filing your 2000 return?
Taxpayers who've moved should file an official change of address form with their local U.S. Post Office.

Is there a website where taxpayers can find out more about their checks?
There is a website with lots of information -- www.irs.gov. It won't tell taxpayers exactly how much their check will be for, but it will tell people when the checks are going out. (The exact amount will come in that letter from the IRS in mid-July). On the IRS website there are fact sheets about general questions.

[This message has been edited by 12dn94dst (edited June 07, 2001).]

[AKA2D '91]

AKA2D clicks her heels

You mean I'm really gettin' sumin back from Uncle Sam? I must be dreaming! Say it ain't so! Say it ain't so!

AKA2D counts the days until July 27th

It ain't much, but I'll take it!

Thanks Uncle Sam!

[12dn94dst]

More on the tax rebate from the IRS website. If this isn't enough to confuse you, nothing will. IF I read this correctly, everyone who filed a return will receive a refund. It does not matter if you recieved a refund or had to pay additional taxes.
http://www.irs.gov/ind_info/apinfo/index.html

[DST Love]

Originally posted by 12dn94dst:
Hey Soror, where are you getting that EVERYONE will receive a refund? From the site you indicated, it says that if you had a tax liability (owed), you get a refund.

like i said: "IF i read it right." apparently I didn't. sorry

I am SO SORRY SOROR!! I clicked the wrong icon. I DID NOT mean to edit your message. Please forgive me?


[This message has been edited by 12dn94dst (edited June 08, 2001).]

[Kimmie1913]

Hey Sorors- Here is an illustration of how the refunds are t be calculated. My source is the irs website at www. rs.gov that has already be referenced in this thred.

They direct you to the appropriate lines on your tax return form to determine what your rebate will be.
Thier site says this:

If you filed single or married filing seperately and made less than $6,000, your rebate will be 5% of your taxable income. If you paid less to the government than what 5% of your taxable income equals, you will get back all you paid but not more than you paid.

If you filed single or married filing seperately, made $6,000 and up your refund will be $300 as long as you paid more than $300 in taxes. If you paid less than $300, you will get back all you paid but not more.

If you filed head of household and made less than $10,000 than you will receive back 5% of your taxable income up to %500 as long as you paid $500 or more in taxes. If you paid less than $500, you will receive back all you paid. If your taxable income was more than $10,000 you will receive $500 as long as you paid more than $500 in taxes.

For people filing married, the taxable income thrshold is $12,000 in taxable income. Less than $12,000 the refund is 5% and above $12,000, the refund is $600. Again, this is all bound by how much you paid in taxes.

For everyone, if you paid less than your calculated refund, you will only get back what you paid. (ex. I would get $250 based on 5% of my income but only paid $200 in taxes. I can only get the $200 back, not more) Also, if you get back less than the $300, $500 or $600 max. you could have qualified for, you can get a credit on your 2001 taxes for what ever you did not get this year. (Example- if I only get $200 of my possible max of $300 this year, I get a $100 credit next year.) Also, if you did not pay taxes this year, you can apply your credit to your taxes in 2001.

I hope that was clear. Let me know if it was not and I will edit for clarity. Also, the irs site is very good at breaking this down.

Just trying to help my sisters out!

#3 Baltimore Metropolitan Alumnae Sp 99

[c&c1913]

I got my rebate today and it is already spent !

[Shawniedst3]

My check came in the mail right before I went on vacation. So, you know that check was spent! I was more surprised when I came back and discovered that the state made a direct deposit into my account. Which meant, I got money from the state too.

[MaMaBuddha]

i received a lousy $5.90 from the gub-erment.