President Obama is the most divisive President our country has ever had. His class warfare, a favored tactic, is one of the most dangerous. While he says he is only raising taxes on the rich, he is actually raising taxes on every producer in this country.
In 1913, the 16th Amendment to the Constitution made the income tax a permanent fixture in the United States. It was supposed to never surpass 7% or 8%.
In 2012, we are faced with taxation so high that it is the equivalent of larceny. Politicians get their foot in the door with bills such as Obamacare and are then free to add new and ever-increasing taxes without having to put them before the public. This is taxation without representation and it is thievery. Nothing has changed since 1913 except that the foot has been in the door for a hundred years.
The Bush tax cuts, as they are ridiculously called, have been part of tax law for ten years. When do people stop calling tax law the Bush tax cuts? When and if these “cuts” expire, they are tax increases, period!
Tax increases for 2013 alone amount to about $500 billion.The $500 billion is about 3.4% of the GDP. Economic growth estimates, which are over-estimates these days, will possibly fall between 2% and 3%. These new taxes will wipe out any growth. [Novel Investor]
Obamacare is a never-ending and ever-increasing tax bill without any representation by the people. The original projections for the cost to taxpayers was $940 billion and then, after it passed, it was $1.76 trillion. Yesterday, the CBO announced it will be $2.6 trillion.
It will continue to explode with every projection and every new rule that is written into the law. Obamacare is more unaffordable than Medicare and Medicaid, two programs which are unsustainable as they currently exist.
More than 76% of the Obamacare taxes will be paid by the middle class. Obamacare puts a 15 member panel and 159 boards between you and your doctor. That’s an expensive bureaucratic morass.
The 2700 pages are filled with taxes and mandates but we will have additional burdens imposed by roughly 18,000 pages of rules that have been written to date, many of which are being kept from the public by the “transparent” administration.
Many states are going to opt out of the Medicaid expansion now that SCOTUS ruled they can, leaving that bill for the states that don’t opt out – that will affect the middle class.
The Medicaid expansion was part of the administration’s plan to cover more people. The federal government was going to pay for the expansion for the first three years but after that the states were supposed to pay. Many states will not pay. Many states already have a shortfall and cannot afford the expansion.
The Medicaid expansion does not guarantee access to medical care. Doctors are opting out because the reimbursements are absurdly low and slow in coming. Some payments, according to the New York Times, are $25 a visit, causing doctors to lose money. The renowned Mayo Clinic won’t take Medicare or Medicaid.
The only way a Medicaid expansion can be covered is with higher taxes or deep cuts (rationing) to other state programs. It will also increase shortages of doctors who take Medicaid. Half a trillion was taken out of Medicare to help fund Obamacare, putting Medicare in a hole that will require rationing as well.
Obamacare taxes “the millionaires and billionaires” who earn average wages.
There are 20 new Obamacare taxes.
Codification of the “economic substance doctrine”(Tax hike of $4.5 billion). [This is my personal favorite.] This provision allows the IRS to disallow completely-legal tax deductions and other legal tax-minimizing plans just because the IRS deems that the action lacks “substance” and is merely intended to reduce taxes owed.
The Obamacare Medicare payroll tax –
The Medicare tax on salary and/or self-employment (SE) income is 2.9%. Employees pay 1.45% and the other 1.45% is paid by the employer. The self-employed pay the entire 2.9%.
Starting in 2013, an additional 0.9% Medicare tax will be charged on “millionaires and billionaires” who earn $200,000 and couples who earn $250,000 and income above $125,000 for married filing separately. The self-employed will pay the whole freight. Small business owners pay as if it was personal income and it come off before any company losses.
The Obamacare Surtax on Investment Income –
Then, to stir investments, Obama is going to kill investors. The highest federal income tax rate on long-term capital gains and dividends is 15%. In 2013, it will be 20% but when the Bush tax cuts expire, it will go to 39.6%.
If your adjusted gross income (AGI) exceeds: (1) $200,000 if you’re unmarried, (2) $250,000 if you’re a married joint-filer, or (3) $125,000 if you use married filing separate status, you will pay an additional 3.8%. Therefore, the maximum federal rate on long-term gains for 2013 and beyond will actually be 23.8% (versus the current 15%) and the maximum rate on dividends will be a terrifying 43.4% (versus the current 15%).
There will be a 3.8% tax on profits from the sale of a home that exceeds the threshold. The threshold is $250,000 per individual and $500,000 per couple. Currently it only affects individuals who make more than $200,000 and couples who make more than $250,000.
The real danger of this is real estate piece is that once the government has their hands on home sales with yet another tax, it will be abused by them. (It’s not called a tax by the government but it is a tax.) Next year, it will be people making over $150,000, then it will be everyone. It will hurt the housing market for high end homes and please tell me what right the government has to do this so they can waste more money?
The Obamacare FSA Cap –
Currently you can contribute to your employer’s healthcare flexible spending account (FSA) plan and it comes off your income before taxes. Then you can use the money to pay medical expenses at the end of the year tax free. Now there will be a $2500 cap.
The Obamacare Medical Tax Expenses –
Tax deductions for medical expenses are 7.5% over annual gross income but that will go up to 10% in 2013.
The Obamacare Medical Device Tax –
Every medical device will be taxed 2.3% more and it will be levied on gross sales which will include companies that have not yet turned a profit. Expect to see medical devices and all that innovation go to China and the like.
There are several other tax policies set to expire or take effect in 2013 that include the child tax credit going from $1000 to $500 per child [we all know how inexpensive it is to raise children], expiration of the reduction in marriage penalty [don’t get married], the alternative minimum tax patch expires [that is pure thievery], and the estate tax goes up [so you can pay taxes even when you’re dead. Why not, you can vote when you’re dead in Obama land.] The 100% business expensing expires [that should stir up business].