Get ready for Obama’s Taxes
“Spectacles, testicles, watch and wallet.” – Yeah, that’s it! That’s a pretty good interpretation of the opening verse of Michelle Obama’s prayer to the spirits as she is busy cleaning them up. I can’t argue with that verbiage – it expresses the very essence of redistributive change. They cover it all; up top, down below, up front, and backside. They’ve got you coming and going. Talk about a pickpocket’s prayer!
No wonder Obama considers himself a Christian. Yes, it is true, and he specifically proclaims allegiance to the First United Church of the Kingdom – Youth Outreach Universal. Think about it – a lot. Services begin January 1, 2011. A special dedicatory prayer circle is planned for April 15th with special high Holy days scheduled throughout the year.
Speaking of Michelle, something Wiccan this way comes! And I’m not talking Christine O’Donnell! No, this is better. Personal income tax rates are scheduled to rise in 2011. Why, you ask? Simple, Nancy Pelosi just couldn’t bring herself to bring up a vote on extending the Bush tax cuts. Therefore, personal income tax rates will rise come January 1, 2011. Now, I seem to remember Barack Obama claiming that nobody earning less than $250,000 a year was going to see any tax increases at all. And I believed that? Sheesh! Here’s the lowdown:
- The 10% bracket rises to an expanded 15%
- The 25% bracket rises to 28%
- The 28% bracket rises to 31%
- The 33% bracket rises to 36%
- The 35% bracket rises to 39.6%
This next one is something both gays and straights will come to appreciate. There are going to be higher taxes on marriage and families. The “marriage penalty” (narrower tax brackets for married couples) is set to return from the first dollar of income. What’s more, the child tax credit will be cut in half from $1,000 to $500 per child. Compounding the fun is that the standard deduction will no longer be doubled for married couples relative to the single level. Finally, both the dependent care and adoption tax credits will be cut. Feel better now?
You think the Democrats got you by the cajones while you are alive? Try death, instead. Beginning January 1, 2011 a 55 percent top death tax rate will be assessed on all estates valued in excess of $1 million. Leave behind too large of an estate and instead of your heirs receiving your estate they will instead inherit a tax bill. Thanks Barack! Halleluiah!
They even carved out the Charlie Crist Memorial Tax Increase for those orange people who prefer to catch some rays down at the local tanning salon. What, pray tell is that? I’ll tell you! It is a brand spanking new 10% excise tax on getting your hide tanned at your local salon. Sure to make sure you share in the experience, there is no exemption from this tax for those unfortunate crispy critters earning less than $250,000 per year. And just to make sure you felt the love, this tax is already in effect. You’re been paying for it since last July 1st. We’re not worthy, Obama! Our legs are all tingly and stuff. Must be Christ Matthews syndrome.
Still feel left out? No need to worry! If you save or invest part of your income you’re going to be slapped with yet another tax – This time for being thrifty. Obama, in his wisdom, has decreed that the capital gains tax will rise from 15 percent in 2010 to 20 percent in 2011. And just in time for the recession, how thoughtful of our glorious leader, all blessings are upon his name! And not to be outdone, the dividends tax is zooming all the way from 15 percent in 2010 to 39.6 percent in 2011. But wait, there’s more! Those rates aren’t high enough. In 2013 they are scheduled to increase yet another 3.8 percent. Oh, blessed art thou, most benevolent and wise Barry. May the very angels in Heaven shout for joy at the mere thought of your graciousness!
Thanks to the good folks over at ObamaCare come January 1, 2011 you will no longer be able to purchase non-prescription, over-the-counter medicines (except for insulin) without a prescription (makes sense, huh?) and pay for it with your Health Savings Account (HSA), Flexible Spending Account (FSA), or Health Reimbursement Account (HRA) pre-tax dollars. Thank you Barry!
But wait, there’s more! Don’t get the idea that you can withdraw funds early from an HSA account because the tax penalty for doing that is being doubled from 10 percent to 20 percent. This puts HSA accounts at a disadvantage to IRAs and other tax-advantaged accounts, which will remain at 10 percent.
Think you’re getting off easy? Think again! Starting January 1, 2011 ObamaCare imposes a Brand Name Drug Tax. This will be a multi-billion dollar tax assessment imposed on name-brand drug manufacturers. Hope you don’t need prescriptions next year, because you are going to pay through the nose for each and every pill.
And let us not think that the IRS has to play by the same rules you do. The IRS is being empowered to disallow legal tax deductions simply on the basis that your claim to a deduction lacks “economic substance.” Think of it as redistribution of wealth. Now the government, via the IRS, is going to ensure you get screwed, even if you follow their rules to the letter. How thoughtful!
And, yet another little goodie has been slipped into your 2011 tax year W-2 form just for giggles. There will be a new box on that form in which employers will be required to report their costs incurred in providing you with your health insurance. Okay, this isn’t a tax…drum roll please…yet! It will be extremely easy for the IRS to slam you with a health insurance benefit tax now that they have the numbers. Oh, yeah, remember the “economic substance” policy. They are going to get you one way or another.
Think we’re done listing all the new taxes yet? Au Contraire! Here are a few more precious little gems awaiting you in 2011:
- You will no longer be allowed to make charitable contributions from your IRA.
- Tax benefits for Education and Teaching will be trimmed. The deduction for tuition and fees will not be available. Tax credits for education will be limited. Teachers won’t be able to deduct classroom expenses. The Coverdell Education Savings Accounts will be cut. Employer-provided education assistance is curtailed. And the student loan interest deduction will be disallowed for hundreds of thousands of families.
- Business taxes are going up. There are scads of new taxes being levied on businesses. The biggest hit is in the loss of the Research and Experimentation Tax Credit – but there are a lot of other ones too.
- Small business expensing will be slashed and 50% expensing will disappear. Small businesses currently can expense equipment purchases up to $250,000. Not any more – the new limit in 2011 is only $25,000. For larger businesses, they will no longer be able to expense anything…they will have no choice but to depreciate those types of expenses.
- The Alternative Minimum Tax (AMT) is going to ensnare a lot more families. Last year it trapped 4 million families. The estimate for 2011 (estimate provided by the left-leaning Tax Policy Center) is that 28 million families will now be subjected to the AMT.
A certain congressman seems to have gotten it right earlier this year at the State of the Union address. Obama, you lie! The only consolation is that when these new taxes smack the taxpayers upside the head that the Tea Party Movement is going to gather steam and roll right into the 2012 elections. Then it will be time for the taxpayers to get even with Obama and his socialist henchmen and slap THEM upside the head. Amen to that!