Now this term “taxmageddon” is not one I made up. As a matter of fact I first heard of it from the Heritage Network’s The Foundry, and their article titled Morning Bell: Beware the Taxmageddon.
The article, written by Mike Brownfield talked about what we as Americans have coming at us if ObamaCare isn’t repealed completely.
Brace yourself. In a mere 271 days, you and your fellow Americans will be hit with a tax hike the likes of which this country has never seen. The Washington Post aptly called the unprecedented $494 billion tax hike “Taxmageddon,” and Federal Reserve Chairman Ben Bernanke described it as a “massive fiscal cliff.” Whatever your preferred imagery, it’s a really big deal.
Despite all the warnings, President Barack Obama has kept his silence while Congress has made no apparent effort to prevent this impending calamity to families and the economy. The prevailing wisdom is that “something will get done” in a lame duck session of Congress after the election. But why wait? And why after the election?
Here’s why you should be worried. For starters, remember that this is the same President who in 2009 promised, “if your family earns less than $250,000 a year, you will not see your taxes increased a single dime.” That’s a vow he’s broken, and in 2013, things are going to get even worse if this year Obama doesn’t lead and Congress doesn’t act. Katy, bar the door, there’s big trouble in store.
The tax man won’t draw his billions from the American taxpayer with just one big needle — the massive tax increase will be the product of tax policies expiring in seven different categories, on top of five new Obamacare tax hikes taking effect. In a new paper, Taxmageddon: Massive Tax Increase Coming in 2013, Heritage’s Curtis Dubay details the tax hikes that will occur if President Obama and Congress do not act before the end of the year:
Almost 34 percent of the tax increase from Taxmageddon comes from the expiration of the 2001 and 2003 Bush tax cuts. These cuts are best known for reducing marginal income tax rates, but they also reduced the marriage penalty, increased the Child Tax Credit and the adoption credit, and increased tax breaks for education costs and dependent care costs.
Another 25 percent of Taxmageddon comes from the expiration of the once-temporary payroll tax cut. The expiration of the patch on the Alternative Minimum Tax (AMT) — which would raise the income threshold over which families qualify for the AMT to prevent middle-income families from paying this tax that is only supposed to impact “the rich” — accounts for 24 percent of the total potential 2013 tax increase.
The balance of the tax hikes comes in part from new taxes under Obamacare, the expiration of tax cuts in the 2009 stimulus, the expiration of a group of policies known as “tax extenders,” changes in the current policy on the death tax (in 2013, it will rise from 35 percent today to 55 percent and the exemption will fall from $5 million to $3.5 million), and the expiration of businesses’ ability to fully expense new capital investments.
This $494 billion in higher taxes will certainly hit families and business hard in 2013, but their effects are already being felt. Dubay explains that Americans must plan for tomorrow, and the tremendous uncertainty about tax policy makes the future much more uncertain, thus discouraging the investments and other actions needed to spur the economy to create jobs faster today.
We do not have much time left my friends, and Obama is doing everything he can to keep the subject off of his healthcare bill. He knows that the people do not want it, but he doesn’t care. And since he doesn’t care my friends, we had better, or we are going to get hit with the biggest tax hike in history. It will ruin this economy, it will get rid of all of our disposable income, and we will no longer be able to buy anything that we want, let alone what we need.
Now here are some of the numbers we will be seeing. There will be a total of twelve new tax increases coming to us.
Almost 34% of the tax increase will come from the expiration of the 2001 and 2003 tax cuts from Bush. Now everyone keeps talking about these like they are tax cuts and need to be paid for. Nothing could be farther from the truth. They ceased to be tax cuts when they became law. They are now the tax rate, and any change in them, like getting rid of them, is a tax increase! These tax laws are best known for reducing the marginal income tax rates, but they also did other things like reducing the marriage penalty, increased the Child Tax Credit and increased the adoption credit. They also increased the tax breaks for education costs and dependent care costs. So expect all that to go up.
Another 25% of this new coming Taxmageddon comes from the expiration of the once temporary payroll tax cut, so expect your payroll taxes to go up. More money out of your already shrinking paycheck.
The Alternative Minimum Tax, or the AMT which would raise the income threshold over which families qualify for the AMT to prevent middle-income families from paying this tax that is supposed to only impact the “rich” makes up for 24% of the coming tax increase. We are all going to get hit cause this will hit more people than ever before.
The balance of the tax hikes will come in part from the new taxes under Obamacare, and the expiration of the tax cuts in the 2009 porkulus. It’s the expiration of a group of policies known as ‘tax extenders’ and it will go on and on because it’s huge. Then on top of that, add the rising gasoline prices, and everything else that we are seeing price hikes on because of inflation, and you and I will see the disappearance of any and all our disposable income. You know, the stuff that we use to buy the things we want. That is going to be destroyed.
This is all planned folks. It’s planned to hit after the election so that Obama will not get blamed for it. But the blame rests squarely on his shoulders…….and the democrats in congress who worked hard to pass all this stuff. It rests on the shoulders of the republicans who buckled and gave in. But it won’t hit them. It will hit us. Like a ton of bricks before the call of the country’s financial palace. All this is going to make life MUCH HARDER to pay for, and, will make having a business much much harder to keep. And being able to go out and buy something cause you want it? FORGETABOUTIT!
This is why Obama has to go in November, and why Obamacare HAS TO BE REPEALED. There is NO OTHER WAY. Mark my words. We are about to see our way of life disappear completely if this isn’t stopped.
May God Bless our efforts to help get America back, and put God back into our country
God Bless America, Bless all Americans, and bless us to start using more common sense.
-Robert-
Robert P. Garding
