Terror is only justice: prompt, severe and inflexible; it is then an emanation of virtue; it is less a distinct principle than a natural consequence of the general principle of democracy, applied to the most pressing wants of the country.
~ Maximilian Robespierre
January 1, 2013 is the big tax day. Aside from the continuation of the Bush tax cuts which will affect everyone who pays taxes, there are the “sneaky” taxes now rearing their ugly heads.
Obama took $716 billion out of Medicare and counted it twice to prove Obamacare was deficit-free. He is also taxing investment income for the “wealthy” twice under Obamacare.
The tax levies a 3.8% Medicare tax on investment income (all traditional investment income) for “millionaires and billionaires” making more than $250,000 and individuals making more than $200,000 a year.
He originally said he’d tax “millionaires and billionaires” and notice how it quickly became $200,000 (which is not all that much in NY)? When they run out of their money, which they quickly will, they will track you down. There will be no hope of improving one’s lot in Obama’s Socialist Utopia.
The current Medicare payroll tax is 2.9% with half paid by employers and it is increasing by .9%. Now you can add 3.8% if you invest and make $200,000.They will pay on their salary and on their investment income.
Why? Obama can’t fund his unsustainable healthcare program and he doesn’t support capitalism because it puts our country in a superior position to other nations. He wants to redistribute our wealth until we are a mere cog in the world’s wheel.
Capital gains goes up by 3.8% and will be the highest in the world.
Capital gains goes to 32.8% on long-term investments (currently 15%) and 43.4 on short-term such as investment gains, interest and rental income (currently 35%).
In addition to the Bush tax increases, taxes will rise another 3.8% for many business owners and job producers.
They are raising piddling amounts of money with these increases, which will keep the government running for days. Then what?
In 2013 alone, Heritage says it will amount to a $494 billion tax increase and that is just the first year. This monster grows exponentially. Heritage estimates that five of the 18 new taxes, which begin right away, only bring in $23 billion – you do the math. I’ll help you out. According to the US debt clock, we are spending 1.44 million dollars every 2 minutes.
…For the first time, the Medicare payroll tax would be applied to investment income, beginning in 2013. A new 3.8 percent tax would be imposed on interest, dividends, capital gains and other investment income for individuals making more than $200,000 a year and couples making more than $250,000.
The bill also would increase the Medicare payroll tax by 0.9 percentage point to 2.35 percent on wages above $200,000 for individuals and $250,000 for married couples filing jointly.
The new tax on investment income is higher than the 2.9 percent tax proposed by Obama. House Democratic leaders increased it so they could reduce the impact of a new tax on high-cost health insurance plans strongly opposed by labor unions.
The 40 percent tax on health benefits would be delayed until 2018 and would apply only to premiums exceeding $10,200 a year for individuals and $27,500 for families.
|CNBC Poll: Tell Us What You Think|
The search for revenue to pay for health care has been made more difficult by Obama’s campaign pledge not to raise taxes on the middle class. The result is a bill that would raise a total of $438 billion in new taxes over the next decade, mainly from high-income taxpayers and fees on the health care industry.
Taxing the rich to pay for health insurance would represent a significant departure from the way Americans have financed safety net programs in the past.
Both Social Security and Medicare are supported by broad-based payroll taxes. Although the rich pay more — they have bigger incomes — the burden is shared by the middle class and even the working poor.
“This is the problem with a $1 trillion bill,” said Rep. Dave Camp of Michigan, the top Republican on the House Ways and Means Committee. “They’ve got to find all these ways to pay for it.”…
Some more goodies from CNBC analysis:
Projected revenues from the tax increases over the next decade, according to the nonpartisan Joint Committee on Taxation which will also kill investment in healthcare and drugs:
- The new tax on high-cost insurance plans, $32 billion.
- A fee on the makers and importers of brand-name drugs, $27 billion.
- An excise tax on the makers and importers of certain medical devices, $20 billion.
- An annual fee on health insurance providers, starting in 2014, $60 billion.
- The repeal of a tax loophole that could allow paper manufacturers to get tax credits for generating alternative fuel in the paper making process, $24 billion.