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The rest of the afternoon dip.
However the clock ticking and of congress and the president don't actually resolve their standoff over taxes and spending this year.
Next guest says look at -- a 500 billion dollar tax hike.
Rents calling it tax may get and do you want amnesty agenda that joining us now critics today senior analyst in tax -- -- Heritage Foundation.
-- this -- seems to be what we talk about at the end of every year the expiration of tax cuts we have about fifty Extenders you have AMT marriage penalty south and you basically.
You -- your tax return something is about to expire.
You think they're gonna do anything before the lame duck congress gets in.
Well I think the conventional wisdom a few weeks ago was that they would put the -- end of the year.
After all -- makes sense they've developed a habit in recent years pretty important tax decisions off until the last possible second.
-- I think that a conventional wisdom is wrong in this case.
There's a growing sense around the country if -- -- that they need to do something soon just last week in the Washington Post Mohamed -- area in the CEO of Pimco.
Told congress they need to get going on this because already affecting the markets.
Look noticeably pulled these -- tax -- expirations are -- what's the biggest part of this is that the expiration of the bush tax cuts.
Yes the expiration of the bush task that's of the biggest part.
Of tax and -- it's up 34% of the total.
Tax hike but it's not going part they're still desperation -- payroll tax cut the AMT patch which is supposed to keep AMT from hitting middle income families.
There's a 55% in just a one million dollar exemption.
Business expensing hundred -- an expense think that expires at the end of the year as well as ended keep in mind that what a bit.
Some tax -- -- including the most -- -- damaging want the three point 8% surtax on investment who also kicks in on January 1.
Right -- some go away some star.
Here's a thing about 7% of the people affected by these tax cuts and Extenders are low -- middle income people.
So why wouldn't this be on the top weather radar right now because you know what -- might just think -- Tennessee Texas 55% that you mention.
Really the wealthy are not -- dramatically affected by this.
Right -- -- agree that the total to direct tax like just unknown low income families 70% tax again just falls on those families.
The bush tax cuts we've heard for twelve years now that these were just -- cuts for the rich it's just not true right more than half -- the -- the bush tax cuts but the vast majority of an attack.
Are from middle to low income families the payroll tax cut is just a test upper middle low income families.
And the -- -- is just to keep AMT from hitting middle income families so this is not a class warfare -- this is something that affects everyone it's particularly in the middle income families could destroy -- at a time how's this gonna play out in your opinion -- I think you know what anything to have comes out of Washington comes at the very last second.
Are we gonna have that same scenario here was this can be -- -- -- was some tax cuts being allowed to expire while others are extended.
It's all gonna come down in the senate right now -- -- the house John Boehner said yesterday that the house or presented as is gonna vote on test again in the summer.
And and will fall to Harry Reid and senate.
And we'll see you haven't been but I think some of the house passes it prevents -- again they'll put a lot of pressure on the senate to do something so we could see something before the November election.
Chris got a good stuff and you're right we need represented -- -- push ahead with that -- today at The Heritage Foundation you ask the right question.
If they get their act together they can tell us apart yes he's as opposed to one --