Kathie Obamadovich, the hack columnist for the Des Moines Register, had a column yesterday ("President Strives To Deflate His Critics") about Obama's campaign appearance amongst a selected crowd of gay clapping seals in Ottumwa and said this:
He also brought something a bit sharper. He directly worked to deflate the criticism that has been floating his way - criticism from the tea party over high taxes, for example.
"We passed 25 different tax cuts last year to help people make ends meet," Obama said. "So when you hear people hollerin' about tax cuts, we've cut taxes."
So what about those alleged 25 different tax cuts last year?
These are the "tax cuts" in the "fake stimulus" bill that Obama signed on February 17, 2009:
1. "Making Work Pay" Tax Credit (Sec. 1001, Page 195). In tax years 2009 and 2010, the Making Work Pay provision will provide a refundable tax credit of 6.2 percent of earned income up to $400 for individuals and up to $800 for married taxpayers filing joint returns.That seems legit enough, although that comes out to $2.19 a day for a married couple, and it was passed during a year in which America had a nearly $2 trillion deficit.
2. Increase in the Earned Income Tax Credit (Sec. 1002, Page 198). Go to the stimulus bill for all the details, but it essentially expands this benefit for the working poor.EITC isn't a tax cut. It's welfare.
3. Increased Eligibility for the Refundable Portion of Child Credit (Sec. 1003, Page 199). In 2009 and 2010, families who don’t earn enough to pay income tax would be eligible to claim the $1,000 child credit.Child tax credits aren't a tax cut. It's welfare.
4. "American Opportunity" Education Tax Credit (Sec. 1004, Page 199). Increases the Hope Scholarship Credit to $2,500.You've got to be enrolled in college and meet certain income guidelines.
5. Refundable First-time Home Buyer Credit. (Sec. 1006, Page 202). This extended and increased the first-time home buyer tax credit from $7,500 to $8,000.You have to be a first-time home buyer, and then home sales aren't exactly setting the world on fire. Then what happens to the market once it expires?
6. Temporary Suspension of Taxation of Unemployment Benefits (Sec. 1007, Page 203). This exempts from taxable gross income the first $2,400 of unemployment benefits.Doesn't help working people, and complicates things for unemployed people.
7. Tax Credits for Energy-Efficient Improvements to Existing Homes (Sec. 1121, Page 208). This provides up to a $1,500 tax credit for qualified energy efficiency improvements.You have to spend a huge amount of money to qualify for this tax credit, which is really little more than a government-sponsored rebate.
Again, you have to spend a huge amount of money to qualify for this rebate.
8. Sales Tax Deduction for Vehicle Purchases (Sec. 1008, Page 203). This allows people to write off state and local sales taxes related to the purchase of a new vehicle costing up to $49,500.
9. Premium Credits for COBRA Continuation Coverage for Unemployed Workers (Sec. 6432, Page 348)
COBRA ain't cheap, as anybody who has been unemployed would know.
10. Economic Recovery Credits to Recipients of Social Security, SSI, Railroad Retirement and Veterans Disability Compensation Benefits (Sec. 2201, Page 336). This was a $250 payment for senior citizens, disabled veterans and disabled people living on Social Security benefits.An extra 68 cents a day for non-workers!
11. Computers as Qualified Education Expenses in 529 Education Plans (Sec. 1005, Page 202). This allows college students to write off the expense of computers and software, provided it's for educational purpose and not for games.How much money do you think this saved low-income, debt-ridden college students? And do you write off the purchase of a $500 computer for the child's or the parents' tax rate? What does it matter?
12. Plug-in Electric Drive Vehicle Credit (Sec. 1141, Page 212). Allows purchasers of plug-in electric vehicles to write off up to $5,000 of their purchase (depending on the power of the battery).I love this one. It gave a huge boost to the luxury golf cart market last year.
13. Tax Parity for Transit Benefits (sec. 1151, Page 219). This relates to an increased exclusion amount for commuter transit benefits and transit passes.
14. Health Coverage Tax Credit Expansion (Sec. 1899, Page 309).More complex stuff.
Here are the Small Business Tax Cuts:
1. Extension of Enhanced Small Business Expensing (Sec. 1202, Page 221). This is a temporary increase in limitations on expensing some depreciable business assets.
2. 5-Year Carryback of Net Operating Losses for Small Businesses (Sec. 1211, Page 221).
3. Extension of Bonus Depreciation (Sec. 1201, Page 220). This extends by a year election to accelerate the AMT and Research Credits in lieu of bonus depreciation.
4. Exclusion of 75% of Small Business Capital Gains from Taxes (Sec. 1241, Page 228).
5. Temporary Small Business Estimated Tax Payment Relief (Sec. 1212, Page 222).
6. Temporary Reduction of S Corporation Built-In Gains Holding Period from 10 Years to 7 Years (Sec. 1251, Page 228).
I don't understand any of that.
Finally, Other Business Tax Cuts:
And I don't understand any of that, either.
1. Advanced Energy Investment Credit (Sec. 1302, Page 231). This relates to properties designed to reduce greenhouse gas emissions, such as those that produce energy from the sun, wind, geothermal deposits, fuel cells, microturbines, or an energy storage system for use with electric or hybrid-electric vehicles.3. Work Opportunity Tax Credits for Hiring Unemployed Veterans and Disconnected Youth (Sec. 1221, Page 223). This is a tax credit to provide incentive to businesses to hire unemployed veterans and "disconnected youth." That latter term is defined, in part, as young adults "not readily employable by reason of lacking a sufficient number of basic skills."
2. Tax Credits for Alternative Refueling Property (Sec. 1123, Page 211). This is a temporary increase for alternative fuel vehicle refueling businesses.
4. Delayed Recognition of Certain Cancellation of Debt Income (Sec. 1231, Page 224).
5. Election to Accelerate Recognition of Historic AMT/R&D Credits (Sec. 1201, Page 220).
There you have it. The 25 tax "cuts" according to President Obama and what Katie Obamadavich at the Des Moines Register did not tell you in full.
What is the matter with those angry, racist, spitting, and violent teabagging Republicans? Those Nazis! Those Klansmen! Those ungrateful jerks living in Aztlan!
Listen up, the Great Obama has given you tax cuts. Be grateful and obedient to The Won, or else we'll call out the S.W.A.T. team!