Obama promised no tax increases on anyone making less that $250,000. a year. It was one of the center pieces of his presidential campaign. The relic media abdicated their jobs and parroted this lie without question. Now we face reality.
After December 31, the death tax will return. Currently at 0% it goes to 55% on estates of $1 million or more.
After December 31, personal income tax brackets will be raised. The lowest bracket moves up 50% from 10% to 15%. The next lowest bracket from 25% to 28%, and the old 28% bracket will be 31%, the 33% bracket is pushed to 36%, and finally the 35% bracket becomes 39.6%.
After December 31, the marriage penalty returns.
After December 31, capital gains tax will jump from 15% to 20%, a 33% increase.
After December 31, the tax on dividends will go all the way from 15% to 39.6% an increase of 164%.
In addition to the taxes above, there are numerous new taxes that have been approved and are in the pipeline.
In 2013 Medicare will go up by 3.8% on those making more that $200,000.
Capital gains and dividend taxes will increase again in 2013.
The child tax credit will be lowered from $1000. to $500.
There are changes coming in how a health savings account can be used, all of which give the government more money, leaving the saver with less.
A new tax will be levied on brand name drugs in 2011 with increases scheduled in subsequent years.
Then there is often ridiculed tanning bed tax.
The Economic Substance Doctrine. This obscure piece of legislation allows the IRS to disallow perfectly legal tax deductions and maneuvers merely because it judges that the deduction or action lacks ‘economic substance.'”
The alternative minimum tax will subject 28.5 million families to the tax when they file next year, up from 4 million this year.
The are changes in the ways business can depreciate equipment, all of which add to the tax burden on business.
According to ATR, there are “literally scores of tax hikes on business that will take place,” plus the loss of some tax credits. The research and experimentation tax credit will be the biggest loss, “but there are many, many others. Combining high marginal tax rates with the loss of this tax relief will cost jobs.”
College tuition and fees will no longer be deductable and there will be limits placed on education tax credits.
Teachers won’t be able to deduct their classroom expenses and employer-provided educational aid will be restricted.
Thousands of families will no longer be allowed to deduct student loan interest because they make too much money.
And while Obama vacillates between calling the requirement that every person buy health insurance a mandate or a tax, the effects are the same. Less money in your pocket. There will be 15,000 new IRS agents hired to force compliance.
There’s the tax on Americans who decline to buy health care insurance.
In 2013 there is a 3.8% Medicare tax beginning in 2013 on profits made in real estate transactions by wealthier Americans.
The list goes on and on. Most of the new taxes are purposely obscure and hidden. And I am sure many new ones will be added or discovered as Obamacare, the new banking regulations, and other legislation is passed and implemented.
And the list above does not include and of the thousands of new state and local taxes and fees that will be coming to offset profligate local spending.
Of course the media is silent on the broken promises and the coming tax increases. They don’t want the ignorant peasants to realize what is going on, at least until after the November elections.
Ain’t life grand in Obamaland?