Shoot 'Em Up Gunfight Over Taxes at O.K. Corral

You heard it first here: the showdown between Senate Democrats and Republicans over the extension of the Bush tax cuts will not be decided until after the November elections, when they return to the Senate on November 15th.   Since the Democrats lack the votes now, the Democrats will wait until after the elections and then attempt to pursue an extension of the Bush tax cuts for the middle class, while raising taxes on the wealthiest of Americans. Don’t hold your breath on that one.
 
Already the feud is brewing and drawing blood, with Republicans charging how the increase in taxes will devastate our economy, as if it is not devastated already. Here in my home state of Connecticut, the Republican Senatorial candidate, Linda McMahon—believe it or not, the former World Wrestling CEO, who has been seen on occasion in the past jumping into the wrestling ring and kicking a few big steroid boys in the groin (wish she would do that to all those big boys in the Senate if she wins)—is running ads for lowering taxes to boost the economy out of this depression, featuring video clips of John Fitzgerald Kennedy, when he proposed tax cuts back in the early 1960s. Linda, I knew Jack Kennedy; Jack Kennedy was a friend of mine….You’re no Jack Kennedy.
 
What the public may not recall is that the highest marginal tax rate back then was not 35% but 91%! And the Revenue Act of 1964 decreased the highest marginal tax rate down to 77%, still more than twice the highest marginal tax rate under Bush. So all this raucous between the Democrats and the Republicans is over a 4.6% increase up to 39.6% on those wealthiest Americans earning over $250,000...LOL!  Who cares!
 
If the Democrats prevail, the extension of just the Bush tax cuts for the middle class will only drive our country into $3 trillion dollars worth of more national debt over the next 10 years; whereas, if the Republicans prevail in the preservation of all of the Bush tax cuts, it will drive our country into $4 trillion dollars worth of more national debt over the same period (weren't the Republicans suppose to be the conservative party?). Max Baucus, the Democratic Senator of Montana, who chairs the Finance Committee, is proposing a bill which preserves the middle class tax cuts permanently but sidesteps the high-end tax rates and the massive $1 trillion Republican investment in AMT relief; however, the bill would allow corporations to receive a refund of a portion of their AMT credits if they invest during 2010 in capital equipment for use in the U.S.  (I like that provision; in fact, I love all investment tax credits:  JFK introduced an investment tax credit 50 years ago.)  His version of the bill would cost only $2 trillion over the next decade.
 
It’s unfortunate that the gunfight at the OK corral will not take place before the election, because it is certain to be a bloodbath. The Clanton Republicans would—and will, nevertheless—be firing their 45s at the Earp Democrats, charging that raising taxes on anyone right now would be bad for our economy. (I guess we’d be in really big doo-doo if the highest marginal tax rate had remained at 39.6%, huh?!) The Earp Democrats would be firing their buntline specials right back at those Clanton Republicans, shooting to kill, touting that it is immoral to preserve healthy tax cuts for the three million multi-millionaires, who have been rustling us poor, hard-working, honest folks over the past ten years. Isn’t it strange that it is now immoral to have these tax cuts for the rich when it wasn't 10 years ago? LOL!
 
This is old time, shoot 'em up, politics, the Earps versus the Clantons, the bad guys versus the badder guys.  A band of outlaws, a bunch of crooks.  I always liked the portrayal of Ike Clanton by Lyle Bettger, because he was pure evil...hey, just like all the gun slingers in Washington!  If I thought that they would actually shoot and kill one another, I'd tune in and watch it!  But since it's only high theater, I think I’ll pass and watch the reruns, instead, of “Everyone Loves Raymond”.  It's bloodier and funnier watching Deborah beat up Raymond every night.

Have a tax or an accounting question? Please feel free to submit it under “Comments” at Accounting, QuickBooks, and Taxes by the Barefoot Accountant. For information and assistance on any tax and accounting issue, please visit our website: Accountants CPA Hartford, LLC. 

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The Barefoot Accountant—is a Certified Public Accountant, Certified QuickBooks ProAdvisor,  operating an accounting, tax, and QuickBooks consulting firm in Berlin, Connecticut, Accountants CPA Hartford, Connecticut, LLC.  Bill has instructed graduate and undergraduate courses in Accounting, Auditing, and other subjects at the University of Hartford, Central Connecticut State University, Hartford State Technical College, and Purdue University. He also taught GMAT and CPA Exam Review Classes at the Stanley H. Kaplan Educational Center and at Person-Wolinsky, and is certified to teach trade-related subjects at Connecticut Vocational Technical Schools. His articles on tax and accounting have been published in several professional journals as well as on several accounting websites. William was born and raised in New Britain, Connecticut, and served on the City's Board of Finance and Taxation as well as its City Plan Commission.  Bill is a crazed animal lover, feeding birds, squirrels, chipmunks, skunks, possums, stray cats, and any two-legged or four-legged critter traversing through his yard.  His backyard in Berlin, Connecticut has been certified as a habitat suitable for wildlife by the National Wildlife Federation.

Bill also writes an Accounting, QuickBooks, and Tax blog:  Accounting, QuickBooks, and Taxes by the Barefoot Accountant.  For entertaining articles, please see his listing at The Amazing Brighenti.

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