The Taxes Are Coming, The Taxes Are Coming

Discussion in 'Economics' started by pspr, Jul 21, 2010.

  1. pspr


    The Tax Tsunami On The Horizon

    Fiscal Policy: Many voters are looking forward to 2011, hoping a new Congress will put the country back on the right track. But unless something's done soon, the new year will also come with a raft of tax hikes — including a return of the death tax — that will be real killers.

    Through the end of this year, the federal estate tax rate is zero — thanks to the package of broad-based tax cuts that President Bush pushed through to get the economy going earlier in the decade.

    But as of midnight Dec. 31, the death tax returns — at a rate of 55% on estates of $1 million or more. The effect this will have on hospital life-support systems is already a matter of conjecture.

    Resurrection of the death tax, however, isn't the only tax problem that will be ushered in Jan. 1. Many other cuts from the Bush administration are set to disappear and a new set of taxes will materialize. And it's not just the rich who will pay.

    The lowest bracket for the personal income tax, for instance, moves up 50% — to 15% from 10%. The next lowest bracket — 25% — will rise to 28%, and the old 28% bracket will be 31%. At the higher end, the 33% bracket is pushed to 36% and the 35% bracket becomes 39.6%.

    But the damage doesn't stop there.

    The marriage penalty also makes a comeback, and the capital gains tax will jump 33% — to 20% from 15%. The tax on dividends will go all the way from 15% to 39.6% — a 164% increase.

    Both the cap-gains and dividend taxes will go up further in 2013 as the health care reform adds a 3.8% Medicare levy for individuals making more than $200,000 a year and joint filers making more than $250,000. Other tax hikes include: halving the child tax credit to $500 from $1,000 and fixing the standard deduction for couples at the same level as it is for single filers.

    Letting the Bush cuts expire will cost taxpayers $115 billion next year alone, according to the Congressional Budget Office, and $2.6 trillion through 2020.

    But even more tax headaches lie ahead. This "second wave" of hikes, as Americans for Tax Reform puts it, are designed to pay for ObamaCare and include:

    The Medicine Cabinet Tax. Americans, says ATR, "will no longer be able to use health savings account, flexible spending account, or health reimbursement pretax dollars to purchase nonprescription, over-the-counter medicines (except insulin)."
  2. achilles28


    The death-tax is totally unAmerican.
  3. TGregg


    You ain't seen nothin' yet. Just wait. Only suckers work for a living.
  4. Higher taxes, including the health care "tax"... and perhaps a "Cap 'n Tax" tax Obama wants to jam through before the Dems loose the majority...

    All of which DISCOURAGE hiring.

    Perhaps Obama's agenda includes strapping the private sector and KILLING JOBS INTENTIONALLY.. so that current UI benefit recipients remain on the dole PERMANENTLY... all part of his "transformation of America" into a Socialist state.

    :mad: :mad:
  5. pspr


    None of these taxes can be reversed until 2013 when Obummer is out of office. So, I don't see the employment situation to really improve until that happens or at least the government assault on small business stops.
  6. dtan1e


    not to mention indirect tax already from QE, tax to death?
  7. inflation is another tax on its way.
  8. I seriously doubt any new administration will repeal the new taxes. A portion, possibly, to please some voters, but the majority will stick for quite a while is my guess.
  9. Most Americans don't realize....

    Stalin CONFISCATED EVERYTHING... in order to pay for transforming Russia from an agrarian economy to an industrial one. That's hard to imagine, considering he was taking from poor peasants... their land and their farm production. He even went so far as to export 5 million tons of grain while 5 million of his citizens starved to death.

    The ultimate goal of a Statist such as Stalin... THE GOVERNMENT OWNS AND CONTROLS EVERYTHING.. THE PEOPLE ARE ALLOWED TO LIVE ONLY SO LONG AS THEY PRODUCE AND SERVE THE STATE. Stalin murdered 50,000,000 Russian citizens, as I recall the history.


    Obama is a Statist... how far will he get with this goal of "fundamentally transforming America"?

    If there were any sense of justice in this world, all who voted for him would slit their own throat...

    :mad: :mad:
  10. dtan1e


    Obama is not a Statist, he just have an empty head, a marketing person not a manager, doesn't know a single thing which all the special interest groups are just to happy to have him there while they plunder and run round and round him and he applauds
    #10     Jul 22, 2010