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Monday, March 26, 2007

Joint Tax Committee Releases Description of Tax Provisions in President's Budget, Projects $333 Billion Tax Increase from Proposed Standard Deduction for Health Insurance

Blue_bookThe Joint Committee on Taxation today released Description of Revenue Provisions Contained in the President's Fiscal Year 2008 Budget Proposal (JCS-2-07):

This document, prepared by the staff of the Joint Committee on Taxation, provides a description and analysis of the revenue provisions modifying the Internal Revenue Code of 1986 (the “Code”) that are contained in the President’s fiscal year 2008 budget proposal, as submitted to the Congress on February 5, 2007. The document generally follows the order of the proposals as included in the Department of the Treasury’s explanation of the President’s budget proposal. For each provision, there is a description of present law and the proposal (including effective date), a reference to relevant prior budget proposals or recent legislative action, and an analysis of policy issues related to the proposal.

On page 301, the Joint Committee projects that the President's proposed standard deduction for health insurance, coupled with repeal of the exclusion for employer-paid health insurance, self-employed health insurance deduction, and itemized medical deductions, would result in a $333 billion tax increase over 10 years.

http://taxprof.typepad.com/taxprof_blog/2007/03/joint_tax_commi_4.html

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Comments

Bush can take his tax increase proposal and
stuff it where the sun don't shine!!!

Either the White House is with the American people or they are against us.

Posted by: carol | Mar 26, 2007 6:39:05 PM

Why not? The American people have proven that they are little more than a cowardly bunch of whimpering pussies that would rather sit on their ever expanding backsides and watch T.V. and make excuses as to why they should let someone else handle any confrontation with the so call authorities. They will still be bitching and crying as they are led to the camps Kellogg, Brown and Root are being paid $383 million to renovate. At least there they won't get in the way of those of us that prefer to fight rather than head for the litter box.

Posted by: John | Mar 26, 2007 7:10:50 PM

You can deduct lunches at strip clubs, but you can't deduct medical expenses. Unfreaken' believable.

Posted by: Kelly | Mar 26, 2007 8:40:49 PM

Like father, like son.

Posted by: Rob | Mar 26, 2007 11:51:55 PM

Just more public looking of the American people by the criminal Republicans and Democrats. They are looting in public because they know the jig's up and the time for looting will soon be past. When the US attacks Iraq, China will dump their dollars onto the money markets, causing a crash that will drop the dollar down to 1/100th its current value. This will of course cause a complete collapse of the US government and US society, plunging Americans back into the 18th century, both in terms of lawlessness and in access to technology. All those plasma TVs will be fitting monuments to the past as Americans will no longer be able to afford the electricity to power them. In the words of the Great Decider, "Bring it on!"

Posted by: Doug@usa.com | Mar 27, 2007 12:13:27 AM

John hits the nail on the head!
Martial Law is on the way... goodbye freedom! If they would put free cable TV that had football and the home shopping network featured around the clock in the camps, the pussy americans would gladly walk in without a fight. Oh... let's not forget... news and gossip about TV stars would have to be shown too because it's so important.

Posted by: Dave | Mar 27, 2007 2:24:33 AM

This discussion ignores the reality that the activities which actually do generate 'taxable income from sources within the United States,' as identified in Subchapter N, Chapter 1, Subtitle A, of Title 26, are NOT activities in which most Americans engage.

It takes a minimum of FIVE statutes to establish liability for federal income tax (the fifth listed below being NECESSARY for liability).

1. Section 1 - Imposition of Tax
2. Section 63 - General definition of 'taxable income'
3. Section 61 - General definition of 'gross income'
4. ONE of the following:
a. Section 861 - General definition of 'income from sources WITHIN the US"
b. Section 862 - General definition of 'income from sources WITHOUT the US"
c. Section 863 - General def. of 'income from sources partly within & partly without US
5. An OPERATIVE section of the Internal Revenue Code. These sections, which actually describe the ACTIVITIES which generate 'taxable income' are found in Parts II-IV of Suchapter N. Examples include Section 911 which identifies the foreign income of Americans as taxable and Section 871 which identifies the domestic income of foreigners as taxable.

THERE IS NO OPERATIVE SECTION that identifies the activities of the average American as being taxable. The sad and disturbing reality is that most Americans HAVE NEVER owed or actually paid federal income tax, but instead have been the subjects of extortion.

Posted by: Ken | Mar 27, 2007 5:51:57 AM

Americans are so stupid peed-ons. They expected cheap gas by using credit to fund the Iraq and Afaghistan invasions. Now that the pirating has not worked and the credit has to be paid and the hired crooks term is up---the bill needs to be paid. 333 $billion are you guys kidding,how about in the $trillions ?
Remember the %2.1 trillion missing in 2002. It to needs to be paid. Like in Detriot houses are going for the price of used cars. And you idiots want Hillary in---Goof balls !

Posted by: genrikh yagoda | Mar 27, 2007 5:57:57 AM

The IRS is the collection agency for the Fed. The The Fed is America's privately held,doesn't pay taxes,never been audited banker. It's not cheap to be the world's police force. These things are expensive. We have a choice of guns or butter. Guns have a better ROI.(at least for those that are involved in that business)

Posted by: Robert | Mar 27, 2007 7:50:54 AM

My parents were self-employed, and they paid double social security and got no deduction for their self-paid medical insurance for the whole family.

This "tax increase" merely evens the playing field. Socialists believe that health care should be free -- for them and people who vote like them. They are like small children who have no concept that goods and services are produced by someone who expects to get paid. They think that the only reason everything isn't free is because evil rich people are stealing from them. I wish you assholes lived in the wonderful old USSR, where everything was free, but the shelves were bare.

Posted by: E Pluribus Unum | Mar 27, 2007 8:00:58 AM

Just remember, you are either a U.S. Citizen or a citizen of one of the united states of America.

Which one are you? One is required to pay taxes, the other not.

Do you know the difference?

Posted by: sharpinchitown | Mar 27, 2007 8:43:17 AM

It feels wrong to defend this, because I can't stand the current administration and didn't ever vote for it, but if you'll read the document (sad to watch people complain about television and martial law that can't be bothered to go read two pages of the document in question), you'll see that the $333 billion is somewhat offset by the $1.8 trillion in tax cuts made on the previous page.

Its not wrong to help people pay for health care. If it were up to me, I'd probably save the $498 billion its going to cost over 10 years to repeal the estate tax and use that to provide better health care, but they don't let me manage the budget. I sure hope we can find someone to do the right thing in 2008!

Posted by: rob | Mar 27, 2007 9:12:45 AM

Anybody in favor of taxation for any reason is a slave begging for his chains. Repealing the estate tax was long overdue, it is evil and vile to tax people for their entire working life, then tax what they have been able to save and pass down.

It may not be wrong to help people pay for health care, but sending an armed government agent to my home to steal from me to pay for someone else's health care is no different than committing the armed robbery yourself.

Posted by: Henry the Eighth | Mar 27, 2007 9:38:27 AM

I want a taxation democracy. We would vote for taxes and how it gets spent. Congress can't seem to figure it out while they enjoy their comfy McMansions, private jets, and sheltered inner loop. They're supposed to make laws, not taxes (I know that taxes are law).

Posted by: Paul | Mar 27, 2007 10:08:07 AM

Henry, go spew your anarchistic stupidity somewhere else. Governments require money to run or there can be no government (what you seem to want). The only way to raise it is to tax.

As far as the estate tax, the point is to avoid a situation where a few families could keep building their estate until they are untouchable to the rest of society. Anyone who's estate is less than $5 million doesn't even qualify for the tax. It's a completely valid way to avoid a hereditary oligarchy.

Posted by: alan | Mar 27, 2007 10:28:19 AM

Please take more taxes from me and spend it on lots of big, scary bombs so the british (or french) don't have to save their own asses from the muslim hordes!

Corruption is rampant! :)

Posted by: Jaymazlle | Mar 27, 2007 10:30:41 AM

Taxation is always 'for the other guy'. We've heard it
a thousand times.

Since it was all collected at the point of a gun
http://djomama.blogspot.com/2006/11/gun-in-room.html,
how come there's so much yet to pay?
http://djomama.blogspot.com/2006/07/its-official.html

Who do you think is going to pay it?

Posted by: jomama | Mar 27, 2007 12:18:00 PM

"Repealing the estate tax was long overdue, it is evil and vile to tax people for their entire working life, then tax what they have been able to save and pass down."

It's funny that the same people who whine about the government taking a cut when dead millionaires pass on their wealth to the next generation are the same people who come out with the 'socialist' bullshit when people talk about making health care affordable. So... rich brats who never have to do a day's work in their lives when daddy kicks the bucket shouldn't have to pay a dime to the feds for the privilige, but minimum wagers must pay out the ass just to stay healthy enough to carry on working their 16-hr days? How do you get to be so spectacularly wrong?

Posted by: friedwire | Mar 27, 2007 12:55:49 PM

Dissolve the PRIVATELY owned Federal Reserve....let Uncle Scam actually take in all revenues instead of paying it to interest on the National Debt.....20% National Sales Tax, Dissolve the IRS, which is an illegal federal instition, anyway....Bam problem solved! Free you mindz and you ass will follow!!!!!!!!!

Posted by: Bill | Mar 27, 2007 1:56:44 PM

You folks voted for this idiot. Still satisfied with your choice? =/

Posted by: clanky | Mar 27, 2007 3:48:10 PM

The $trillion for our brilliant effort in Eye-rack (as 90% of us say it) has to come from YOU and ME. We voted them back in, so suck it up.

Posted by: LindeyB | Mar 27, 2007 9:25:08 PM

Bush, Iraq, along with everything Bush is up to has amounted to the word "swindle". We need to wake up before he has completly drained the USTreasury into the pockets of his enablers who are the only one's this pResident cares about.

Posted by: Davol | Mar 28, 2007 3:20:53 PM