To: Kenneth E. Phillipps who wrote (82901 ) 4/22/2010 9:44:04 PM From: Hope Praytochange 1 Recommendation Respond to of 224724 The $3,700 Dime Posted 07:01 PM ET Taxes: Candidate Obama repeatedly vowed that those earning under $250,000 "will not see any of your taxes increase one single dime." Will he veto the $3,700 tax hike Congress is considering for 30 million Americans? 'I can make a firm pledge," candidate Barack Obama told a New Hampshire audience about a year and a half ago. "Under my plan, no family making less than $250,000 a year will see any form of tax increase. Not your income tax, not your payroll tax, not your capital gains taxes, not any of your taxes." It was devastating for President George H.W. Bush when he broke his 1988 "Read My Lips" tax pledge, and fully exploited by his 1992 opponent Bill Clinton. But the former vice president to Ronald Reagan at least had an excuse: He was being bullied by a Congress controlled by the opposition party, with which he unwisely agreed to take part in a budget summit within the cloistered locale of Andrews Air Force Base. And the Gramm-Rudman sequester axe of indiscriminate spending cuts was hanging over the federal government's head. The budget unveiled by Senate Budget Committee Chairman Kent Conrad, D-N.D., has been found by the Brookings Institution and Urban Institute to extend the Alternative Minimum Tax to a total of 33 million people, raising their taxes by an average of $3,700 beginning in 2012. That's some dime. Remember the AMT? That's the too-complicated-to-understand tax enacted over 40 years ago. No one had to worry about it, we were told, because it only affected a tiny handful of millionaires. But pouncing on a couple dozen tycoons whose lawyers found loopholes giving them a zero income tax bill ended up picking the pockets of tens of millions of Joe and Josephine Sixpacks. Thanks to no indexing for inflation, politicians have found the AMT to be a conveniently hidden way to raise taxes on the middle class; they never bothered scrapping it as it turned into a monster. Now Conrad is actually bulking up the beast with steroids by refusing what has become the nearly annual AMT "patch" giving hundreds of millions of dollars in middle-class tax relief. Conrad's plan also includes increased estate taxes — a double-whammy. The budget chairman says the Democrats' proposal will exert pressure for major tax reform, but with this crowd in charge of Washington that's the last thing we need. When it comes to a tax revamp, the president is now hinting that "change we can believe in" means a value-added tax — a hidden money machine that would seal the deal in Europeanizing the beleaguered U.S. economy. Who would ever think that not "one single dime" in tax increases really meant "Brother, can you spare $3,700?"