Monday, December 26, 2005

The Alternate Minimum Tax Is DC's ATM Machine


By Elaine Meinel Supkis

Otherwise eager, the tax cutters in Congress can't muster the moxie to cut taxes to the middle class. The contempt they have for the average voter never ceases to amaze me. The ones benefitting from tax cuts are only 2% of the population! Amazing.

From Yahoo:
The alternative minimum tax is becoming even stickier — and could entangle even more taxpayers next year.

Congress is expected to recess for the holidays without an agreement on how to limit the effect of the AMT for 2006. While the AMT is expected to affect about 4 million taxpayers for 2005, that number will swell to about 21.6 million for 2006 unless Congress acts to lessen the impact.

Congress has said it will do so next year, making it retroactive to Jan. 1, but it's still unclear exactly how that will play out, since other initiatives, like extending cuts on capital gains and dividends, loom in the background.
They never ever index anything the poor or middle class uses. Never. When forced to index Social Security of be hounded out of office, they did so but after a few years, rigged the statistics by leaving out all those things the elderly must pay for due to being on a fixed income and not likely to be buying the stuff young people buy, now Social Security falls further and further behind, this year being a huge insult to all retired people since the hike was less than the health care deductions so everyone had a net LOSS. Congress scrambled to make it the same as last year but no hike to make up for the huge inflation in essentials.

So it is with the taxes: the GOP cheerfully and without much debate, in the teeth of a flood of red ink, drowning in red ink, cuts taxes to the rich, the corporate, the oil barons and Wall Street. But facing the rising wrath of the middle class which has seen the tax cuts of 2001 burn in the bonfire of government created inflation as the Fed pumps money and hides the results by refusing to publish any more M3 stats....Well!

Welcome to hell, dear Middle Class America! You all thought the fires and pitchforks would be reserved for Welfare Queens. Well, your welfare irks the GOP and they will crown you all with a crown of thorns. As they rip apart your wealth, simultaneously decreasing the value of your house and cars while reducing the value of the dollar, we will all kiss our pretend prosperity goodbye.

As a very long range bad news forecaster, well known at economic sites as the Cassandra of the Titanic, I assure everyone, in this matter, I will have the last bitter laugh as everything I have put on the web for years comes true, one item after another. Lord help us this doesn't end up in the Apocalypse as desperate middle class Americans run from one side of the ship to the other screaming at the lifeboats leaving, rowed by our politicians, desperately rowing away with the rich, to far shores, anywhere, as bombs rain down on our heads and the cities burn with riots and insurrections.

Yup.

I have seen this happen to other lands. We have seen world wars and we know they can and do happen and that economic mayhem causes them as great empires teeter and fall in flames.

The fact that Congress can't just gaily go off cutting taxes they need while cutting taxes their owners don't want to pay, we end up bankrupt. Congress will pass this tax cut and "save" the middle class....by bankrupting America. Will the last taxpayer, probably a waitress somewhere, please turn out the lights as you leave, OK? We won't be able to afford the electric bill.

Grazias.
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Previous Similar Articles
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Inflation Roars and Worker's Unrest Increases
Budget Cutters Swing Axe at the Poor
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