If the White House and Congress don’t act this year, a huge, unprecedented tax increase described by Ben Bernanke as a “massive fiscal cliff” will slam American taxpayers. This looming tax hike will result mostly from letting long-standing tax policies expire at the end of 2012.
Instead of waiting until after November’s election, obama should stop campaigning for a moment and start working with Congress to prevent this gargantuan tax increase from taking place. Not only would doing so give assurance to families, businesses, and investors that taxes won’t be rising while the economy is still staggering. It would also show that obama is capable of chewing gum and walking at the same time.
The tax increase, also known as “Taxmageddon” is a $494 billion hike. If action isn’t taken, current law dictates that seven different categories will witness expiring tax policies, while five new obamacare tax increases begin.
Approximately 34% of the tax increase come from letting the tax cuts of 2001 and 2003 expire. Best known for cutting marginal income tax rates, the reductions also lowered the marriage penalty, increased the child and adoption tax credits, while increasing tax breaks for the costs of dependent care and education. Contrary to “progressive” rhetoric, these taxes have a direct effect on the lives of people in all income tax brackets, not just evil rich people who “don’t pay their fair share”.
Another 25% comes from the expiration of the highly debated payroll tax cut. The expiration of a patch on the Alternative Minimum Tax, which prevents middle-income families from paying a tax intended for “the rich” accounts for another 24% of the hike.
The obamacare tax increases, hidden from public view by “progressive” deceit and delay tactics, begin kicking in with one of the most damaging taxes in the law, a 3.8% Hospital Insurance surtax on wages, as well as on salaries and investment income over $250,000.
To top that off, the so-called death tax also expires in 2013. The rate will rise from 35 percent today to 55 percent and the exemption will fall from $5 million to $3.5 million. Then there’s the end of the tax cuts contained in the 2009 stimulus and the expiration of full write-offs for new business capital investments.
Since 2007 obama has had an ongoing, oft repeated mantra: “I can make a firm pledge. Under my plan, no family making less than $250,000 a year…which includes a 98 percent of small-business owners, you will not see your taxes increase one single dime under my plan. Not your income tax, not your payroll tax, not your capital gains tax, no tax. We don’t need to raise taxes on the middle class! You will not see your taxes increased a single dime. I repeat, not one single dime.”
Never mind that he broke that pledge by signing a tax increase on tobacco in early 2009. As a mere voter, you’re too stupid to notice such minor, unimportant details. Move along, there’s nothing to see here.
Apparently the only one “smart” enough to realize that tobacco use in America is restricted to those with incomes exceeding $250,000 a year is the former community radicalizer from Chicago. You may know of him. He’s the one who’s entire college and medical history have been hidden from public view since the day he first infected the Oval Office with his faux transparency, un-kept promises, aggressively anti-American views, anti-business policies, war on religious liberties, attack on affordable energy, intentionally divisive identity politics rhetoric and non-stop campaigning for what would prove for America to be a disastrous second term.
If this is how he behaves while he’s politically obligated to mask his true intentions from undecided voters during an election year, the entire globe will live to regret an extended obama presidency for decades, in not for a century or more.