Congress/Bush is Wishing Happy New Year to the Wealthy!

Want to know one reason why your local taxes keep going up? It is because state and federal politicians keep cutting payments to the local entities to fund things like this...

A surprise awaits the nation's highest earners when they file their 2006 tax returns. Their taxes are going down again - whether or not Congress passes the investor tax cuts the lawmakers have been promising. On New Year's Day, two additional tax cuts will kick in, allowing people who earn upward of $200,000 a year to claim bigger write-offs for a spouse, their children and other expenses, like mortgage interest on a vacation home.

The bolstered write-offs were enacted in 2001, but with a delayed start date because of their high cost: according to Congressional estimates, the new breaks will cost $27 billion over the short term, exploding to $146 billion from 2010 through 2019. By then, most of the benefits would flow to taxpayers who make more than $1 million a year.

With the nation deep in debt, at war in Afghanistan and Iraq, with Congress voting last month to slash programs for health care and student loans, and with a debilitating shortfall building in Medicare - the decision by Congress to let these particular tax breaks take effect now is flabbergasting. But it is not out of character.