$350 billion tax bill approved by Senate (Wash Times)

Senate Adopts a Tax Cut Plan of $350 Billion  (NY Times)

Senate Narrowly Passes $350 Billion Tax Cut (Fox News)

Senators OK $350b in tax cuts (Boston Globe)

Senate passes tax-cut package (MSNBC)

Senate Approves Tax Cut Proposal (Wash Post)

Senate Passes $350-Billion Tax Cut Bill (L.A. Times)

The Politics of Tax Cuts

Firms Cautious on Prospect of Dividend Tax Change 
 

While we will definitely be very happy to have dividends tax free, and will almost certainly start paying them out after the new law takes effect, people do need to remember that this upcoming change is currently for Federal income tax purposes only.  Whether or not the same tax break will apply to State income taxes will have to be seen.  Many States have their income tax calculations based on the Federal number, so Federal changes would automatically affect those states, unless their rulers pass special legislation specifically denying those changes at their State level. Other states, such as here in Arkansas, have independent tax calculations and have to themselves pass special legislation to conform with any new Federal rules.  That often taxes a few years to happen, making it trickier than normal to calculate taxes until the State and Federal rules are back in synch with each other.  With the current financial and budget crises faced by most State governments, there will definitely be some hesitation at enacting anything that they think may reduce their revenue.  Hopefully, State rulers will look at the long term perspective and realize that, if they don’t allow their residents the same tax breaks as the Feds do, people will move to States that do.  Money is a big motivator of behavior, and sooner or later, the additional costs of living in a certain State become too high to tolerate in comparison to other less expensive States.   

Democrats wary of plan to cut 1 percent of budget fat – For the Dims, it’s absolute heresy for the size or cost of government to ever decrease.  Their one main purpose in life is to continue the growth of government involvement in every aspect of our lives. Less money means less power; something they will never sit still for.   

We could have a spin-off from The Sopranos in the works.

The little donkeys are petrified of the tax cuts doing their thing to improve the economy and sweep the GOP into victory in 2004 elections.

Private Accounts Don’t Have to Disturb Social Security

Washington and the States

The real reason why we have higher and higher taxes; government encroachment into more and more areas of our lives.

A Tax Cut for the Wealthy? – The class warfare rhetoric from the Left isn’t anywhere close to true.

Senate Begins Debate on Tax Cuts

Temporary Dividend Tax Cut Proposed – Proving that our rulers can never pass up a chance to make the tax laws more convoluted, they propose this idiotic idea; phase in lower taxes on dividends over five years and then immediately switch back to full taxation.  Complete lunacy.

The Bush tax cut is an investment the country can�t afford to miss.

GOP leaders striving to save dividend cuts

Cut taxes, cut taxes, cut taxes – How to improve the economy, which is why the DemonRats are so adamantly opposed to it.

Bush tax cut is key to strong economy

How well done for taxpayers? – It’s time for our rulers to stop jerking around about nit-picky details and get the tax cut onto the President’s desk.

IRS Laments It’s Too Poor to Pry Loose Billions Due – In spite of their current meltdown, the NY Times doesn’t miss a chance to do its job kissing up to the IRS and pushing for more power for them. 

States �Forced to Raise Taxes,� But Zilch on Soaring Spending – How ABC News sees the world.