The Income Tax: Rates will increase between 3 and 4.5 percentage points in each bracket on January 1, 2011. The 10 Percent Bracket: The bracket will be eliminated on January 1, 2011, raising the income tax burden of many workers by 5 percentage points. The 15 Percent Bracket for Joint Filers: On January 1, 2011, the upper limit of this bracket will shrink from 200 to 167 percent of the upper limit of the 15 percent bracket for single filers, creating a marriage penalty. Standard Deduction for Joint Filers: On January 1, 2011, this will shrink from 200 to 167 percent of the standard deduction for single filers, creating a marriage penalty. The Estate Tax: The top rate for this tax will increase to 60 percent on January 1, 2011, and the value of an estate exempt from taxation will shrink to $1 million, which is less than it is today.
Wednesday, December 2, 2009
The Coming Obama Massive Tax Increase Even Without Healthcare
Remember the Bush tax cuts? Well they weren't permanent and many are set to expire January 1, 2011 unless Obama extends them. Given the budget mess he is creating with his Stimulus for Nobody and his other high cost-low benefit programs, I'm sure he won't extend them and instead raise a massive amount of taxes from people either in the midst of or just recovering from a deep recession. Here are some of the key tax increases (note this list is from an old publication as I couldn't find an updated list and so some of the changes may be a bit different if there was subsequent legislation affecting these points):
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9 comments:
So if he does nothing and follows the law, he is raising taxes. Gimme a break.
BTW, letting the law expire is good news. We have to pay for the Bush wars.
Yes, Bob. If my taxes are $100 this year and $110 next year and my income hasn't changed, then that is a tax increase.
As for the Bush years spending, all of us writing at this blog were critical of the free spending of the Bush administration, especially for things like the massive drug benefit, and bemoaned the administrations utter disregard for smaller government principles that are supposed to be core Republican values. As for war spending I'm sure there is as much waste in military procurement as everywhere else in government, but it is, at lease, one of the few areas that the Constitution (you may vaguely remember that document) gives the Federal government clear permission to collect money for.
But as Obama in his first year has increased spending more than Bush + all previous presidents combined, that 'Bush did it' excuse is rather lame, especially considering that the various big plans currently proposed: healthcare, cap & trade (still despite the mounting evidence that global warming is a massive fraud), etc... will add trillions (with a 'T') more to the deficit. Have a look at the little counter up at the upper right corner. Current total unfunded liabilities of the US are over $70 trillion mostly due to grand Democratic ponzi schemes of the past like Social Security and Medicare/Medicaid. The last administration tacked on the Prescription Drug fiasco (which was unpopular with Democrats because it wasn't quite 'generous' enough (i.e. it didn't spend quite enough of other people's money), and the current administration wants to create an entitlement that will make those look like pikers.
Government spending since FDR has grown at almost twice the rate of population+inflation growth. We cannot afford to pay for the continued blank checks written by politicians (of both parties, but by far the larger share by Democrats) so they can promise clueless constituents goodies in exchange for votes while they push the bills forward. Since the government doesn't produce anything, they can only give you $1 worth of goods by taking $1+the cost of the federal bureaucracy to administer it from someone else. You should keep this simple arithmetic in mind whenever you think some promise of a politician to spend on your behalf is a good thing.
And if you think the large tax increase (which you don't even think is an increase) during a major recession is a good thing, then I suggest you invest all your money in economically sensitive sectors like consumer non-durables and financials.
Interesting answer. I forgot you guys do not like Gov't. As for me Social Security and Medicare are good things.
If you like Medicare and Social Security, we have no problem with you funding them. Just don't make us do it and mortgage our future to fund it against our will.
So you do not think that a country should help the less fortunate. I presume you will not take social security or medicare when you are eligible.
Well let's see, I reach 65 in 2040 and the latest trustee report says it will be exhausted in 2041. So I dont think I will have much choice on whether I will collect or not. Ponzi schemes only benefit those that get in early. And in terms of helping the less fortunate, what do you tell the 20 or 30-something making not that much money who is still giving up around 12% of their income (Fica withholds half from your paycheck and half is paid by the employer) to a "trust fund" that he will never see a dime from? It seems you are robbing the younger less fortunate to fund the older less fortunate in many cases.
Ditto for medicare. I doubt I will ever see a dime from that.
But I do believe in helping the less fortunate. What I dont believe is being forced at the point of a gun to fund massive bureaucracies that help the less fortunate. I also dont like funding stuff like the Robert Byrd highway museum, which helps nobody at all except a few West Virginians. So instead of stealing so much money through taxes that goes to god knows where, how about you cut my taxes and then I will have lots more money to give to charities of my choosing that would very likely be much more efficient than massive government bureaucracies.
Just hope that in the next 30 years you will not need help from the Gov't.
If they would refrain from trying to take about 50% of my income (federal state and local) every year, I think I wouldnt ever need any help from them at all! And Im sure most seniors wouldnt need social security!
Anyway, at this point, even if I did need help, I think I am entitled given the amount of money I already paid into the system.
Peace
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