Congress Eliminates Child Tax Credit, Mortgage Deduction And E.I.T.C From Tax

[Mr. Big Dog 10,747]

The stuff to look forward to...

Congress Eliminates Child Tax Credit, Mortgage Deduction And E.I.T.C From Tax

The deeply unpopular congress, whose approval rating hovers around a historic low of 10%, has voted to remove the child tax credit, the earned income tax credit and the mortgage interest deduction from the tax code starting with the 2014 fiscal year. The move is almost assured to solidify the perception of the 113th Congress of the United States as deeply disconnected from the struggles and desires of the populace it is supposed to serve.

The move, long championed by entitlement reform advocates like congressman Paul Ryan R-Wisconsin and Ted Cruz R-Texas, will cut entitlement payouts by a staggering 177 billion dollars. 54.33 billion dollars in savings will be realized from discontinuing the earned income tax credit, which generally pays those making less than 12 thousand dollars yearly large cash tax rebates far in excess of the actual tax they paid. 69.7 billion will be saved from the mortgage interest tax deduction, which critics say primarily favors top income earners. The elimination of the child tax credit, which critics say serves no fair purpose, will result in an additional 54 billion dollar savings.

A heavy burst of lobbying preceded the vote by several free market/libertarian groups, most notably ones funded by Koch Industries. Initial democratic opposition and reluctance to vote in favor of amending the tax code withered in the face of overwhelming support from the majority party, and several industry groups. Many Democratic caucus members fled their own party leader’s stance to vote in favor of the measure with the majority of Republicans, citing their recent defeat in midterm elections as an endorsement by the people of the Republican platform and agenda.

Congressional Republican leader Kevin McCarthy called the elimination of the entitlements a major victory for America. He pledged to use the savings to establish a new “Job Creator” stimulus for American businesses and corporations: the centerpiece of which would be to cut corporate america’s tax burden by up to 500 billion dollars annually.

Congressman Paul Ryan had nothing but effusive praise for McCarthy’s proposed corporate tax cut. “This is the great news America has been waiting for”, said congressman Ryan. “By placing more money in the hands of Job Creators we can grow and move this economy forward. The detractors will say that giving already wealthy people more doesnt spur the economy. They always do. The detractors will point out empirical evidence and data that they say proves their point. But we will continue to use the undeniable facts of our ideology to make this country great, and not rely on spurious nonsense like empiricism. With more money in their coffers corporations will be able to expand their business, hire new skilled workers and fix the economy that President Obama has ruined.”

Conservative Economists working for the Heritage Foundation predict up to 20% yearly growth (depending on data sets) to the American economy if the forthcoming “Job Creator” bill is passed. Economist Paul Horner, speaking on behalf of the foundation, said the Dow Jones stock index could easily surpass 25,000, leading to a massive creation of wealth for speculators when the new corporate tax breaks take effect.

“All it takes is for us to redirect the funds that once went toward wasteful entitlements and apply them toward the vital functions of our economy”, stated Horner. “The slumbering giants of capitalism will arise from their torpor and rain manna of capital fulfillment on the people from their Plutocratic heights. And that, my friends, is the new American Dream.”

[Sousuke 1,214]

What they call an entitlement, I call a tax increase. For the record I get none of those credits.

[Janelle2002 3,865]

Rich getting richer as the poor keeps getting poor. I am sure the money they are "saving" will go into their pockets. I wish I had went into politics. I could be living the life like them.

[Sousuke 1,214]

Rich getting richer as the poor keeps getting poor. I am sure the money they are "saving" will go into their pockets. I wish I had went into politics. I could be living the life like them.

I work with people in their 'corporate class' if you will (as opposed to traditional social classes). They have no clue how the american people live - they are in their own little bubbles. They might as well be an alien species.

Edited November 18, 2014 by Sousuke

[CarlosAndSveta 808]

My guess is that this is a spoof article. The elimination of these tax credits and deductions would be making the headlines on all news sites.

[Karee 4,189]

My guess is that this is a spoof article. The elimination of these tax credits and deductions would be making the headlines on all news sites.

Yep. Although I wish they would do away with EITC.

[Mr. Big Dog 10,747]

Yep. Although I wish they would do away with EITC.

You are right. Employers should pay their workers, not the government. Make the business bums pay.

[Karee 4,189]

You are right. Employers should pay their workers, not the government. Make the business bums pay.

No one is forcing anyone to work anywhere. Businesses are there to turn a profit, not as some kind of social support system. Don't like what you're being paid, find another job. Simple.

[Mr. Big Dog 10,747]

No one is forcing anyone to work anywhere. Businesses are there to turn a profit, not as some kind of social support system. Don't like what you're being paid, find another job. Simple.

Not quite. Businesses have shifted an ever growing portion of their revenues towards investors and executives and away from their rank and file staff compensation. That's a structural problem that, if left unaddressed, will bring about the next great depression. It's not a question of whether that will happen but only a question of when it will happen. We can do something about it - every other developed nation does something about it. But I have a feeling that we won't because people here just don't get that there is indeed a structural problem in how our economy compensates.

[Rob L 3,811]

My guess is that this is a spoof article. The elimination of these tax credits and deductions would be making the headlines on all news sites.

The National Report is famous for such articles as "Solar Panel Drains the Sun's Energy Experts Say"

[Mr. Big Dog 10,747]

The National Report is famous for such articles as "Solar Panel Drains the Sun's Energy Experts Say"

There was a thread here not too long ago where one of the right wing lunacy sites actually picked up something from the National Report and got all outraged over the "report". And - like clockwork - one of the resident right wing nutters picked it up and spread the right wing outrage right here on VJ. Oh the stupidity. It was hilarious.

[The Nature Boy 4,224]

The stuff to look forward to...

HA HA I wish.. Cept for the Mortgage credit.. That's to help hard working families invest in America and mostly it affects me

Edited November 18, 2014 by The Nature Boy

[unsmiley 111]

Of course this is a joke...

HA HA I wish.. Cept for the Mortgage credit.. That's to help hard working families invest in America and mostly it affects me

No, there really should be no mortgage deduction. Absolutely no justification to have renters subsidize homeowners. But, alas, this will never happen. Politicians of all stripes are too spineless.

Edited November 18, 2014 by unsmiley

[Mr. Big Dog 10,747]

No, there really should be no mortgage deduction. Absolutely no justification to have renters subsidize homeowners. But, alas, this will never happen. Politicians of all stripes are too spineless.

Agreed.

[DavenRoxy 1,073]

Those aren't the only deductions that have "DODO BIRD" written all over them...

http://www.cbsnews.com/news/disappearing-deductions-cost-taxpayers/