Taxes

With all the "tea party" hype about cutting taxes it might be good to note that federal taxes under Obama have been cut. "The fact is, in the past year we have had more tax cuts than almost any time in our nation's history" says representative Steve Cohen (D-Tenn). Recent tax cuts include the following. First, $ 300 billion over 10 years as part of the economic recovery package; $ 232 billion to individuals almost all within the first two years. Second, Obama's Making Work Pay credit which gives $ 200 to $ 400 credits during 2009 and 2010. Third, the $ 1000 child tax credit "was expanded for more families". Fourth, "the working poor can qualify for as much as $ 5667 from the Earned Income Tax Credit". Fifth, there are credits for energy improvements, paying for college tuition, buying new cars and for buying new homes. This source states that "Americans are paying lower taxes this year, even with increases passed by many states to balance their budgets". Shortly after Obama took office, Congress cut individual federal taxes for this year by $ 173 billion while states have increased their taxes by $ 28 billion. The big issue might be the fact that the Bush II tax cuts expire in January and Obama and Congress want to renew only some of those cuts. The ones unlikely (at this time) to be renewed are the cuts for those making $ 200,000 a year to couples making $ 250,000. (Is it possible this is what all this tea party fuss over cutting taxes is all about?)

(Source: "Taxes are lower" by Stephen Ohlemacher of The AP. In The Virginian Pilot on 4/15/10).