The lame-duck session of Congress apparently is providing a preview of the coming 112th Congress. Reports out of Washington, D.C., are that the leaders of both parties are deadlocked on what to do about the expiring Bush tax cuts.
But there is hope. Senate Finance Committee Chair Max Baucus (D-Mont.) says serious discussions on tax cuts and other pending tax legislation would begin later this week. Uh, Senator, that's in like two days. Just sayin'.
I guess the discussions will be prompted by the tax package Baucus reportedly is preparing to introduce any minute now. It's said to include a two-year extension of all the expiring tax cuts, as well as address the estate tax and expired tax extenders.
So, while we still have time to parse just what might happen if or when the current tax cuts expire, I wanted to share some visual representations of the various Bush tax cut scenarios from tax attorney Douglas Cook.
Cook's Average Tax graphic (the red one below) compares the three options currently being discussed for handling the expiring tax cuts: 1) extend all, 2) extend all except for the wealthiest individuals and 3) allow the tax cuts to expire completely.
Meanwhile, his Average Tax Savings graphic (the blue one below) compares the tax savings if the 1) Bush tax cuts are permanently extended or 2) they are extended for all but those in the top income tax tax brackets.
You can get a look larger look at the images by clicking on them (or going to Cook's blog).
And, if you have Flash, once you open the larger infographic, you can drag your tax bracket into the picture to see what the tax rate effects might be under the various scenarios.
- OMG! What will happen to my tax bill if the
Bush tax cuts expire!?!
- Three more likely votes on Capitol Hill for keeping
all of Bush's tax cuts
- Tax cuts, or hikes, for all
- Expiring tax cuts might just do that
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