Update – If you want to study the 1986 tax code a little more throughly than that provided in the named link below, try Cornell’s LII / Legal Information Institute’s look at the 1986 tax code HERE, or the IRS page HERE.
Seriously, if the Democrats want any hope of passing Democratic measures and want the public to clearly understand who is representing what, NOW NOW NOW is the time to introduce single item measures. Such action reduces the possibility of hidden pork barrel type additions, and allows adequate time for reflection on the measures both from Congress and from the public. It simplifies all kinds of things, like paper use, reenactment and modifications. Clear, up and down votes on single measures is THE WAY TO REENGAGE PUBLIC SYMPATHY by showing clearly how the battle is being fought and who is on what side.
Consider the example of our current legislation entitled H.R. 4853 or the “Middle Class Relief Act of 2010” a prime example of negotiation gone wrong.
H.R 4853 is currently an 18-page pdf document. It’s fairly straightforward, however, someone who was familiar with the Internal Revenue Code of 1986, tax code prior to the BushCo era interventions should read it and give us advice. While it substitutes 25% for 28% and 28% for 31% in two tax brackets, for example, it doesn’t’ specify what the brackets are. So, it appears these could be movable. Take a look on the last page of the 2009 Tax Tables HERE ,to see where this might apply.
It discusses rates on capital gains and dividends, but makes no comment on funds derived from 401Ks, or IRAs and pensions. Since this is where most regular folk have actually invested, I think again a review of the 1986 tax code by someone familiar with it, would be helpful.
Update – it appears that funds derived from capital gains and dividends, withdrawn from 401K’s etc, would continue to be taxed at the taxpayer’s current or retirement rate, rather than some lesser tax as is proposed and has been done for non sheltered capital gains and dividends. The problem with this set up, as I see it is, pension fund holders cannot as easily opt out and speculative earnings are driven by others outside that can dip in and out. The pension fund canard that suggests the retiree comes out ahead because they withdraw at a lower tax rate simply doesn’t hold for most people. Folks can easily wind up with say a 21-25% percent taxable rate on their withdrawals, while those who just bought and sold stocks pay a 15% or proposed 20% rate.
Its’ truly distressing that in a year when Social Security has to go begging, and the housing market has tanked, the small business proportion of the bill allows for an increase of the phase-out expensing of depreciable assets from $200,000 to $500,000, cost of living adjustments, and rounding of limitations by the $1000s, and $10,000’s.
A little lollipop for the Republicans is at the end of it, wherein it states that the ALT extension is effective in 2010, or anytime after December 31, 2009.
I encourage folks to read the below related bills for a better understanding of how unemployment insurance has anything to do with airplanes and airports. A hint, if you are a 99er you are screwed and about to enter the realm of the invisible. If you make it a year however, you might be eligible for Obamacare.
H.R 4853 entrains thirteen different related bills. They are:
H.RES.1745, “Providing for consideration of the Senate amendment to the bill (H.R. 4853) to amend the Internal Revenue Code of 1986 to extend the funding and expenditure authority of the Airport and Airway Trust Fund, to amend title 49, United States Code, to extend authorizations for the airport improvement program, and for other purposes, and providing for consideration of motions to suspend the rules.”
H.R.1512, the “Federal Aviation Administration Extension Act of 2009”. It already became public law re: 111-12.
H.R.3607, the “Fiscal Year 2010 Federal Aviation Administration Extension Act”. It already became public law re” 111-69.
H.R.4217, the “Fiscal Year 2010 Federal Aviation Administration Extension Act, Part II”. It became public law re 111-116.
H.R.4915, the “Federal Aviation Administration Extension Act of 2010”. Referred to the Senate Finance Committee-meaning, I guess, since it’s still in committee, it can’t be voted on. So, I don’t know how it was supposed to be included in today’s vote.
H.R.4957, the “Federal Aviation Administration Extension Act of 2010”. It already became public law re: 111-153.
H.R.5147, the “Airport and Airway Extension Act of 2010”. It already became public law re: 111-161.
H.R.5611, the “Airport and Airway Extension Act of 2010, Part II”. It apparently already became public law. (See 111-972.)
H.R.5900, the “Airline Safety and Federal Aviation Administration Extension Act of 2010”. It already became public law re: 111-216.
H.R.6190, the “Airport and Airway Extension Act of 2010, Part III”. It already became public law re: 111-249.
H.R.6467, the “Middle Class Tax Relief Act of 2010”.
H.R.6473, the “Airport and Airway Extension Act of 2010, Part IV”. It was received in the Senate on 12/2/10.
S.3187, the “Federal Aviation Administration Extension Act of 2010”. It was returned to the Senate re: H. Res. 1653.
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