With One Pen Stroke, Bush Raises Taxes Twice
With One Pen Stroke, Bush Raises Taxes Twice
Eighteen years ago, President George H. W. Bush made his famous campaign pledge, “Read my lips: no new taxes.†(Bush Sr. broke this pledge when he signed the 1990 budget agreement.) Now, President George W. Bush is following in his father’s footsteps.
In 1999, he said he would “oppose and veto any increase in individual or corporate marginal income tax rates or individual or corporate income tax hikes.â€
But by signing the recently passed tax cut bill, he raised marginal income tax rates for Americans living abroad. (The bill also cut taxes for the wealthy and worsened long-term deficits.) The New York Times reports today:
In an effort to raise revenues, tax writers in Congress added a last-minute provision that retroactively increased taxes for Americans living abroad. … The change, which is retroactive to the beginning of 2006, is expected to raise taxes on Americans abroad by $2.1 billion over the next 10 years. …
Americans working overseas get a dollar-for-dollar credit for income taxes paid to foreign countries to offset their American income taxes. They also get to exclude $80,000 from the income they report to the I.R.S. The new law increased the exclusion to $82,400 this year.
But analyses by the accounting firms Ernst & Young and PricewaterhouseCoopers show that by adding provisions to how the exclusion is calculated, it raises the overall tax bill and marginal tax rates as well for some overseas Americans.
The Times reported last week that the bill also “tripled tax rates for teenagers with college savings funds.”
Perhaps these tax hikes are good policy. But President Bush has been insisting for years that any tax increase is bad policy. If he has reconsidered his position, he should be upfront about it.
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ThinkProgress should just make one giant page of all the times Bush has lied, and then let us know when a new lie has been added.
I fear, though, that the page would become to impossibly large to download.
May 30th, 2006 at 4:59 pmExpecting Bush to be upfront about anything is like expecting pigs to fly.
May 30th, 2006 at 5:01 pmTax cuts for the rich and corporations.
Tax increases for the young and working.
May 30th, 2006 at 5:05 pmTaxes, spending… the bottom line is the budget is a mess. What a cheese-dick move to raise taxes on people overseas to generate revenue.
May 30th, 2006 at 5:06 pmWe are becoming complacent about the lies of this president, and that is awful.
He can tell a lie on Thursday last and the Press Secretary can say on Tuesday that it was merely an artful use of language to not upset the markets.
Well Snow, the markets have been upset for over a week now, and the upsettedness continues today.
May 30th, 2006 at 5:08 pmTax increases for the young and working.
Comment by Spudge_Boy — May 30, 2006 @ 5:05 pm
Not that the sheep would do it, but could you imagine what they’d do if we all stopped paying our taxes? All approx. 150 million working people?
May 30th, 2006 at 5:12 pm#3 Well, that is what happens when you work and try to get a college degree!!! You, middle class hero!!!
May 30th, 2006 at 5:13 pmMaybe teenagers should have thought about it and sent dumbya’s re-election committee some coin. Hurts now, don’t it?
May 30th, 2006 at 5:18 pmIf he has reconsidered his position, he should be upfront about it.
You’re so funny, Payson.
May 30th, 2006 at 5:23 pmIraqi oil will pay for it…DOH!
May 30th, 2006 at 5:45 pm“This is an impressive crowd. The HAVE’S. And the HAVE MORE’S.”
(Laughter and Applause)
“Who will be skinned alive in the bowels of Hell then drowned in gasoline for an eternity”
May 30th, 2006 at 5:49 pmSo most other countries sort the wheat from the chaff and let the most intelligent go on to a free or nearly free education through graduate school while the US lets the elite glide through college on mom’s and dad’s millions and taxes the aspiring youngster’s efforts towards an education. Sounds like an excellent way to grow a nation. Worked for England, anyway (They adapted after the war, but by then it was too late).
May 30th, 2006 at 5:51 pmWhat a despicable piece of shit he is. Let’s also not forget that VA benefits are now costing our vets $230 to register for medical treatment. So much for “No new taxes.”
Anyway, here’s another Goddamned meme.
May 30th, 2006 at 5:51 pmIt’s easier for a Camel to go throught the eye of a needle than it is for Bush to form complete sentences with proper subject/verb agreement.”
May 30th, 2006 at 5:54 pmIt occurs to me that many Americans living abroad are in Iraq or in neighboring countries supporting operations in Iraq. I know a few who have entertained offers of 2 to 3 times their current salaries. Are these the people who will pay these taxes…the people who are rebuilding Iraq, in great danger? Is this how they will recoup the overpriced contracts given to H and B and others…by taking the hazardous area premium?
May 30th, 2006 at 5:58 pm#14 - Jesus,
May 30th, 2006 at 6:00 pmI think a Hummer 1 would have a better chance than W.
Who gives a crap about this one. Americans living overseas, for the most part, likely can affored a small tax increase.
May 30th, 2006 at 6:04 pmyea and you know those wanna be college students are rolling in green….
/sarcasm off
May 30th, 2006 at 6:13 pm#17 - Like all the military people living overseas?
May 30th, 2006 at 6:13 pmANALYZE THE TAX HIKES!
Teenagers under 18 DO NOT VOTE!
Americans living outside the Country vote by mail and we have known for six years that Democratic votes by mail are not counted (e. g. Florida 2000, Ohio 2004, et. al.).
Old crooks don’t change they just keep on lying!
May 30th, 2006 at 6:29 pmWho gives a crap about this one. Americans living overseas, for the most part, likely can affored a small tax increase.
Comment by For Truth —
Having lived abroad for a long time, I disagree. The exclusion rate is the same, no matter which country an American is living in. $82,000 may be a princely sum in some third world countries; it is not a lot for a family to live on in Japan, the UK and other industrialized countries.
May 30th, 2006 at 6:59 pmMoreover, this is basically unfair. The US is the only major industrialized country that double-taxes its overseas citizens, and Americans living abroad are generally not taking advantage of the various services these taxes cover.
apparently he wasn’t reading his father’s lips…
May 30th, 2006 at 7:05 pmI wonder if Bush knows what he is signing. He seems to be a real cosmonaut cadet lately. Maybe Rush sent him some Meds.
But I digress, having a sister in law, whos husband was in the military, was sent to Hawaii, the cost of living was astronomical.
I can see how this could affect the military folks, depending on where they were stationed at the time.
As far as the School/College thing goes, Just look at Bush’s NCLB act, underfunded and mismanaged.
It is no suprise that the banner he is sitting behind is a lie as well.
May 30th, 2006 at 7:36 pmTAX RELIEF FOR ALL AMERICANS
Yeh Right.
#21 Lora,
Thanks, I assumed Americans living overseas were there by choice and could afford it. I missed the whole military thing, (I guess that’s by choice too?). Why live overseas as an American then, pay more in taxes, your dollar does not go as far, your less safe, and people have BO.
May 30th, 2006 at 7:37 pmNow I don’t feel sorry for the Yippie college students going to live overseas. They chose that.
May 30th, 2006 at 7:39 pmFor Truth,
If “feeling sorry for them” is the standard for who should get tax favors, then “Yippie college students” are farther ahead in line, in my book, than millionaires and billionaires. It is not “tax relief” that we need, but tax equity and prudent fiscal management (but I won’t hold my breath).
May 30th, 2006 at 7:57 pmThanks, I assumed Americans living overseas were there by choice and could afford it. I missed the whole military thing, (I guess that’s by choice too?). Why live overseas as an American then, pay more in taxes, your dollar does not go as far, your less safe, and people have BO.
Comment by For Truth
For Truth
May 30th, 2006 at 9:18 pmYou have some very strange prejudices. Some Americans like myself go abroad to learn about other cultures and their languages. They may do this while taking a job, or go as students, as I originally did, and then end up working in that country for a while. Do you think it’s a bad thing for Americans to learn about other cultures and their languages?
And you’re amazingly uninformed if you think other industrialized countries are less safe than the US and that everyone has BO. Look up, for instance, Japan’s crime rate compared to that of the US. Moreover, Japan and Singapore, for example, are considerably cleaner than the US. In Singapore, a person can get fined for smoking or discarding litter in the streets.
The idea of taxing Americans working overseas more heavily has come up several times over the years but was abandoned up to now. When millionaires living in the US are getting $42,000 or more in tax rebates, this is such a cheap and dirty way to get around the failure of Bush Jr’s financial policies.
Tax cuts for the wealthy create deficits , can that be argued . Nothing good comes out of them . A few years back I got my tax cut , or should I say tax rebate , which I had to pay a gift tax on that as well . Real nice , thanks monkey boy .
May 30th, 2006 at 9:36 pmWell, such tax hikes are only “good policy” if they’re used to balance the budget.
If they’re used as a fig leaf for more tax cuts for the rich (which these are), they are worse than bad policy.
They’re immoral.
May 30th, 2006 at 9:38 pmPROTEST BUSH
May 30th, 2006 at 9:55 pmYeah go live in Singapore, you get jailed for chewing gum.
May 31st, 2006 at 12:58 amWew, make a little sarcastic joke and get railed. Geez. I think if you can afford to travel and live overseas, then a little extra tax won’t be noticed. OK I am bitter cuz I never got to go, wah!
May 31st, 2006 at 1:02 amWew, make a little sarcastic joke and get railed. Geez. I think if you can afford to travel and live overseas, then a little extra tax won’t be noticed. OK I am bitter cuz I never got to go, wah!
Comment by For Truth
For Truth,
May 31st, 2006 at 1:22 amWhy don’t you save some of your jealousy for millionaires, who receive tax rebates of over $42,000? How does that compare with double-taxing families living overseas making between, let’s say, $83,000 and $100,000? A little extra tax, in fact, will be noticed, and could make the difference between being able or unable to go home for Christmas or summer vacation.
Our soldiers overseas live in installations which are covered by Status-of-forces agreements and would not be subject to the added tax.
May 31st, 2006 at 6:57 amThis tax increase in nothing. Wait till the Democrats win back the house and the presidency—then you’ll you see some real tax increases.
May 31st, 2006 at 8:10 amAint that the truth. But don’t count on these guys getting it. They think if dems where in office the budget would be balanced, that we could have diplomatic relations with islamofascists, there would be no political corruption, no more pollution, no more poverty and we would all live in peace and harmony.
May 31st, 2006 at 8:22 am#38
May 31st, 2006 at 9:18 amIn case you didn’t notice, the budget was balanced under Clinton.
We are neither as stupid nor as idealistic as you imagine. We realize that poverty and corruption will always exist, but the percentage of people living in poverty has increased under Bush. And doing away with almost every environmental regulation, as Bush has been doing, is hardly the way to mitigate pollution.
And incidentally increasing the taxes for Americans overseas who pay taxes in the country where they work was proposed a number of times during the Clinton administration but never came to fruition.
Of course they raise taxes on the ex-pats, EX-PATS HAVE NO REPRESENTATION IN CONGRESS TO TAKE BRIBES TO DEFEND THEIR INTERESTS.
There is this myth that Americans abroad are some kind of rich slackers who deserve to be milked for taxes. Not every ex-pat lives in London or Paris you know.
Americans abroad are the face of the US to the rest of the world; they represent US interests, they live in hard conditions sometimes and sacrifice much to further the goals and ideals of American business and American culture.
Americans are the ONLY citizens taxed while living and working outside the country. This is not fair. The US needs to fix its fiscal house but not on the backs of those who have no voice.
May 31st, 2006 at 10:13 amIf you all are upset about this why in the hell dont every working man, woman and teenager go into the office of where he works and fill out a new W-2 form claiming , say 5 dependents.
This will reduce the money flowing into the treasury by a tremendous amount and Bushco wont have any money to throw around.
The results of this action? I dont know for sure but at least the idiots advisors will have something to think about.
Dont you all think it is about time to take some united action against this idiotic presidency?
I do.
May 31st, 2006 at 10:28 am“…doing away with almost every environmental regulation, as Bush has been doing, is hardly the way to mitigate pollution.”
Comment by Lora — May 31, 2006 @ 9:18 am
Just a slight exageration dont you think?
Clinton had balanced budgets to sign because thats what the republican congress at the time gave him.
Poverty may have increased but Cinton did not have to deal with the tech bubble collapse, nor 9/11 or the cost of war or the effects of the massive trade agreement which Clinton signed. In addition Clinton had the benifit of a large percentage of Americans entering the stock market during his tenure. So in short it was luck, not his policies, which led to the economy of the 90s.
From the congressional budget office
http://www.cbo.gov/ ftpdocs/ 57xx/ doc5746/ 08-13-EffectiveFedTaxRates.pdf
It’s the same old word game Bush lowers the rate of increase and libs call it a tax cut when in fact it is still a net increase. The wealthiest 1% pay 34% of all income tax. the top 25% pay 83% How is that fair in a “free” society? How come you libs are all egalitarian about everything exept the tax rate? Show some consistancy of your own.
I am not happy to see any tax hike because I am a believer that we need to starve the beast that is the federal gov. but for TP to state that “Perhaps these tax hikes are good policy.” and still bitch about Bush reveals TP does not judge on principle but rather is a partisan political player.
May 31st, 2006 at 10:51 amI am a believer that we need to starve the beast that is the federal gov. but for TP to state that “Perhaps these tax hikes are good policy.†and still bitch about Bush reveals TP does not judge on principle but rather is a partisan political player.
Comment by troll
To Troll,
May 31st, 2006 at 11:10 amThe federal government, which you would like to starve, has in fact grown to record size under Bush Jr. And no other “wartime” president has cut taxes–particularly on the wealthiest–while waging war. The Iraq War was a war of choice–not necessity, as that country did not attack the US and had no links to 9/11. When waging a war of choice, a real leader should have planned the budget to deal with it. And there’s been no accountability, either. $8 or 9 billion go missing; Halliburton consistently overcharges but still receives no-bid contracts.
As for TP being partisan, what did you expect when you started looking at a site called ThinkProgress? I wouldn’t expect a non-partisan blog from Ann-thrax Coulter’s site, so it’s rather naive of you to expect something different from TP.
“…doing away with almost every environmental regulation, as Bush has been doing, is hardly the way to mitigate pollution.â€
Comment by Lora — May 31, 2006 @ 9:18 am
Just a slight exageration(SIC) dont you think?
Comment by Troll
Ps. Yes, just very slight, especially when one considers that Bush is even trying to get rid of environmental standards set up by a Repub president to whom he is often compared, Richard Nixon.
May 31st, 2006 at 11:14 amOK Lora, its all good.
May 31st, 2006 at 11:34 amIf TP cultist were as critical of TPs bias as they are of Fox bias “progress” might actually be made on these pages.
May 31st, 2006 at 1:02 pmCongratulations troll, Bush has certainly starved the beast. Moron.
May 31st, 2006 at 10:39 pmI did not say I was pro bush Jackass.
June 1st, 2006 at 7:21 amPeter
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March 15th, 2008 at 2:13 am