The Democrats are going to raise your taxes (in 2011)

During the just-concluded campaign, President Bush and other Republicans did what they could to convince voters that Democrats would raise taxes after the election. Voters didn’t seem to believe them or care, and the soon-to-be leaders of the Democratic House and Senate have been doing their best to emphasize that tax raising isn’t on their agenda (unless you consider the minimum wage to be a tax on employers of low-wage workers).

Here’s a prediction for you, though: The Democrats are going to raise your taxes in 2011. Maybe they’ll be politically astute enough to convince voters that it’s really George W. Bush reaching back from retirement on the ranch to raise rates on top earners, capital gains, and dividends. But the effect will be the same. Your taxes will go up (and by “you” I mean Fortune and CNNMoney.com readers, who make a lot more money and are far more likely to own stocks than the average American).

This will come about because of the weird way Bush and the then-Republican Congress designed the big tax cuts of 2001 and 2003. Most of the cuts will expire on Dec. 31, 2010 unless Congress votes to extend them. Then there’s the estate tax, which barring Congressional action will disappear completely in 2011 2010, prompting a rash of mysterious deaths of elderly rich people in the waning months of that year, and then reappear in full force in 2012 2011.

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  1. Layer Seven

    I suppose the tax cuts must be in a “lock box” so that the cuts cannot be repealed before they expire.

    Not.

    Your taxes are going up, and soon.




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