Serious Question: If tax cuts are not extended, taxes would increase by $3,000 or $300 on middle?

[jsamuel]

I have been hearing from WH officials that if we don't extend the tax cuts, that it would raise taxes on average families by $3,000. However, when the Bush tax cuts were originally passed, Democrats claimed that they only cut taxes by $300 for the same people.

Which is it? It can't be both.

[RC]

1. Well, when they were cut, I didn't notice much of a change.

And I was paying almost $4000 in federal taxes. I think I would have noticed it it had saved me $3000.
The correct answer it $300.

[jsamuel]

2. so the WH is inflating the numbers?

I certainly hope they have a good explanation for how they arrived at their numbers.

[BrklynLiberal]

4. Does that surprise you?

[pnwmom]

10. The agreement doesn't just cover the tax rate extension.

It includes a reduction in the Social Security payroll tax rate as well as extensions of certain tax credits that many Americans use and are about to expire.

[BrklynLiberal]

14. Reducing the SS payroll deduction will guarantee that the repukes will win the argument that

SS is unsustainable..and they will dismantle it.

What should have been done was to remove the cap from SS income..and let everyone pay to the max.In th elong run that would guarantee SS for everyone..and avoid the cuts in SS that are in the offing.

[pnwmom]

11. The agreement also lowers the Social Security payroll tax that

individuals pay, and extends certain income tax credits that are about to expire. So the $3,000 isn't just about the income tax rate extension -- it includes these other amounts, too.

[BrklynLiberal]

3. It will affect taxes that you file in 2012 for 2011, not the ones this coming April for 2010

http://answers.yahoo.com/question/index?qid=20101117061408AAErRqg

[BrklynLiberal]

5. Who Gets What If Tax Cuts Are Extended

http://www.ritholtz.com/blog/2010/09/who-gets-what-tax-cuts/

The NYTimes graphic department has your Sunday morning chart porn regarding the extension of tax cuts. Its an illustration fueled by data from the Tax Policy Center, a nonpartisan research organization.

The graphic shows how much Americans have gotten so far broken down by income groups. And it calculates that extending all of the Bush Tax Cuts for the next decade will cost another $2.7 trillion (through 2020).

Here is a guide to who will get what if the cuts are extended, and who got what from the last seven years of cuts:

[jsamuel]

6. it doesn't separate married and individuals

is that on purpose? does it not matter?

[jsamuel]

7. anyway, so the someone making the Median income would have to pay $750 more if the tax cuts expire.

Thanks

[pnwmom]

12. But this agreement would do more than just extend those tax rates.

It would also lower the S.S. payroll tax rate and extend some tax credits that are set to expire.

[aquart]

8. It ain't the taxes, it's the expenses.

Everything we have to pay for is going to go up. Every state and local fee, everything we eat or wear or buy.

That tax cut is going to end up a dead loss to the middle class.

[pnwmom]

13. This agreement will lower the S.S. payroll tax that individuals pay,

at least for the coming year. It will also extend some tax credits (that were put into place to stimulate the economy) that were set to expire.

[pnwmom]

9. The agreement covers a few different kinds of measures, including

a reduction in the part of the Social Security payroll tax that individuals pay and some tax credits that are about to expire. So it isn't just the extension of the income tax rates to consider, it is the effect of these other reductions or extensions, too.