The Middle Class Get (Secretly) Backdoor Taxed (Yeah It's a Dare)

Wednesday, February 03, 2010 , , , , 0 Comments

Do I have to start a petition
to have Obama Unicorn guy Dan Lacey
do unicorn JDA or what?

Apparently I'm not the only one who noticed what Reuters did there:

Come on, Reuters, take a chance.

Advisory: Backdoor taxes to hit middle class
Mon Feb 1, 2010 8:07pm EST

The story Backdoor taxes to hit middle class has been withdrawn. A replacement story will run later in the week.

Business Insider picked it up and credited the bust to Drudge Report. Not to nit-pick but I wrote it last night before I went to bed. Whatever. Even if I don't get credit for it, can I at least get some points for the fucking picture? Christ.

According to a Reuters rep, the [sic - article? post? note? whatever.] was withdrawn "due to significant errors of fact."

"The story was wrong on multiple points and should not have gone out," she emailed us. A formal withdrawal will issued will address specific points that were incorrect later today.

UPDATE: A White House offical told Talking Points Memo that administration aides appealed to Reuters to take it down.

Like I said, @cl5v5r sent it to me the night before and I set it for the morning (hours before Drudge) but who is paying attention?

date Mon, Feb 1, 2010 at 9:27 PM [broke ass Pacific time when I received it from him. Like I said, it was more dirty than scandalous. Who knew? Shame, Reuters!]
subject Advisory: Backdoor taxes to hit middle class

I'm not bitter.

The entire conservative media got all pissed off, I was just trying to be filthy? What gives, Reuters? That's a shitty excuse.

The Feb 1 story headlined “Backdoor taxes to hit middle class” is wrong and has been withdrawn. The story said lower-income families will pay more under tax provisions scheduled to expire Dec 31. The Obama administration’s budget calls for the extension of those tax provisions for households earning less than $250,000. There will be no substitute story.

Ominous words.

The plus side? The middle class has been eliminated.

You can't find the article on Canadian Yahoo either. Thankfully someone ran around and gave us all the missing article (which is as follows in case you missed it):

Update: an anonymous JDA reader gives us the original article (thanks, whoever the hell you are)

Backdoor taxes to hit middle class

By Terri Cullen – Mon Feb 1, 4:09 pm ET

NEW YORK ( --The Obama administration's plan to cut more than $1 trillion from the deficit over the next decade relies heavily on so-called backdoor tax increases that will result in a bigger tax bill for middle-class families.

In the 2010 budget tabled by President Barack Obama on Monday, the White House wants to let billions of dollars in tax breaks expire by the end of the year -- effectively a tax hike by stealth.

While the administration is focusing its proposal on eliminating tax breaks for individuals who earn $250,000 a year or more, middle-class families will face a slew of these backdoor increases.

The targeted tax provisions were enacted under the Bush administration's Economic Growth and Tax Relief Reconciliation Act of 2001. Among other things, the law lowered individual tax rates, slashed taxes on capital gains and dividends, and steadily scaled back the estate tax to zero in 2010.

If the provisions are allowed to expire on December 31, the top-tier personal income tax rate will rise to 39.6 percent from 35 percent. But lower-income families will pay more as well: the 25 percent tax bracket will revert back to 28 percent; the 28 percent bracket will increase to 31 percent; and the 33 percent bracket will increase to 36 percent. The special 10 percent bracket is eliminated.

Investors will pay more on their earnings next year as well, with the tax on dividends jumping to 39.6 percent from 15 percent and the capital-gains tax increasing to 20 percent from 15 percent. The estate tax is eliminated this year, but it will return in 2011 -- though there has been talk about reinstating the death tax sooner.

Millions of middle-class households already may be facing higher taxes in 2010 because Congress has failed to extend tax breaks that expired on January 1, most notably a "patch" that limited the impact of the alternative minimum tax. The AMT, initially designed to prevent the very rich from avoiding income taxes, was never indexed for inflation. Now the tax is affecting millions of middle-income households, but lawmakers have been reluctant to repeal it because it has become a key source of revenue.

Without annual legislation to renew the patch this year, the AMT could affect an estimated 25 million taxpayers with incomes as low as $33,750 (or $45,000 for joint filers). Even if the patch is extended to last year's levels, the tax will hit American families that can hardly be considered wealthy -- the AMT exemption for 2009 was $46,700 for singles and $70,950 for married couples filing jointly.

Middle-class families also will find fewer tax breaks available to them in 2010 if other popular tax provisions are allowed to expire. Among them:

* Taxpayers who itemize will lose the option to deduct state sales-tax payments instead of state and local income taxes;

* The $250 teacher tax credit for classroom supplies;

* The tax deduction for up to $4,000 of college tuition and expenses;

* Individuals who don't itemize will no longer be able to increase their standard deduction by up to $1,000 for property taxes paid;

* The first $2,400 of unemployment benefits are taxable, in 2009 that amount was tax-free.

Bend over, suckers!

(the "Bend over, suckers!" is mine in case that's not obvious)

Mostly I thought the "backdoor" reference was funny, I didn't realize this would become such an issue. Are we sufficiently outraged yet or can I stop yelling?

Beg and plead all you want, everyone should republish the article the White House cried to be pulled. It's the American thing to do. Bitches.

Another Black Conservative
A JDA favorite, Gates of Vienna also caught it.
We all need to be. Filth aside. Leave that to me, I'm totally on it.

(in my humble opinion, CT Patriot takes it a tad far. I'll just wildly speculate that the White House has "revenue neutral" motivations to request the Reuters assrape piece be pulled. LOL)

Jr Deputy Accountant

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.