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Thursday, October 7, 2010

Democrats leave everyone hanging

Most people know by now that Congress adjourned without even considering the issue of the tax rates for this and next year. the Democrats who run both the House and the Senate decided that they would rather put off any vote on tax issues until after the elections so that their members would not have to make clear where they stand on the issue of raising taxes during a recession. It is worth, however, taking a look at where this leaves the country.

The Democrats like to portray the issue as whether or not the rich will get tax breaks, and they claim that this pertains only to those who make over $250,000 per year. This is an out and out lie. Right now, the alternative minimum tax is scheduled to raise taxes substantially on about 32 million people for 2010. That's correct, because Congress left town without considering the annual correction to the AMT, there are approximately 25 million more tax returns that will be subject to the AMT this year than had the correction been passed. Those 25 million returns cover about 40 million people who earn less than $160,000 per year. these folks will see their taxes rise substantially if nothing is done. so the Democrats, who supposedly care about the middle class, have left about 15% of all the people in the country in position to pay higher taxes. And this is not the richest group in the country; indeed, the AMT change does not affect the ultra-wealthy.

The Democrats fail to act is also causing a major upset with regard to families with students in college. The Democrats also failed to renew the tax exemption for a portion of college tuition that has been in place for years. So, here too, the Democrats are leaving millions of families struggling to pay for outrageously high college tuitions without the help that the Democrats claim they want to give.

And this cannot be blamed on Republicans, although the Democrats will surely try to do so. The Democrats have not even come forward with a bill that would make these tax changes. The Democrats have not allowed any Republican proposal for taxes to be brought forward for a vote either. Since the Democrats control the agenda in both houses of Congress, it is impossible for them to blame Republicans for the Democrats' spineless refusal to bring forward any tax bill for a vote.

The truth is that the Democrats care more about their own power and preserving it than they do about the higher taxes that will hit many millions of middle class voters due to the inaction of the Democrats.

There is a good reason why the Democrats look like they are losing control of Congress. Simply put, they do not deserve to stay in control.

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