Are you prepared for a Tax Tsunami? It will be here at the stroke of midnight in the New Year 2011 unless the Proglib government of Barrack Hussein Obama takes action to stop it. And this will be just the start. As the years go by your tax situation will just get “worser and worser and worser” as my young Grand Daughter would say.
Many Americans are looking forward to the New Year 2011 because with it they hope comes a newly reoriented and revitalized House of Representatives who they believe will rescind, reverse, and revise the onrushing waves of significantly increased taxes. While this may well be true, it is the lame-duck December 2010 House of Nancy Pelosi and the Harry Reid Senate that must take action. The question is…will they?
We are talking about the Bush Tax Cuts expiring in 2011 first because this will impact ALL Americans adversely and immediately. For example, the lowest bracket for personal income tax moves up 50% (from 10% to 15%). The next lowest bracket goes up too (from 25% to 28%). Somewhat higher brackets are not spared either. The old 28% bracket gets adjusted up (from 28% to 31%). Higher up, the 33% bracket goes to 36% and the 35% bracket becomes 39.6%. What is that President Obama said so eloquently and sincerely?
Wait. There is more, much more. If you are going to die you best make it this year. At midnight New Year 2011 the old Death Tax returns. This year, thanks to Bush, the Death Tax is zero. Next year, it will hit you at 55% on estates of $1 million…a nice piece of change for Lord Obama. The marriage penalty tax will also be making a comeback. What happens to Capital Gains, you ask? Oh, that ONLY jumps 33%, from 15% to 20%. Letting the Bush tax cuts expire will cost us tax payers the low-low sum of $115 BILLION next year alone, so says the Congressional Budget Office and ONLY $2.6 TRILLION through 2020.
Who you going to vote for in November??
Think we are finished with this Proglib-induced Tsunami? Not by a long shot. Grab your wallet because here comes OBAMACARE!!!!! An outfit called “Americans for Tax Reform” calls this the “Second Wave.” Lets look at the Medicine Cabinet Tax first. ATR says “Americans will no longer be able to use health savings accounts, flexible spending accounts, or health reimbursement pre-tax dollars to purchase non-prescription, over the counter medicines. A HSA withdrawal tax hike will require an additional tax on immediate early withdrawals from an HSA from 10% to 20%. Getting a queasy feeling in your stomach yet?
Like brand-name drugs? As Tony Soprano would say, “Forget about it.” Makers and importers of brand-name drugs will be liable for a tax of $2.5 BILLION next year. This will go up to $3 BILLION a year from 2012 to 2016, then $3.5 BILLION in 2017 and $4.2 BILLION beginning in in 2018. Surely you know who will actually be paying this additional Obamacare Tax. Why, you of course. Then there is the “Economic Substance Doctrine” that states the IRS can disallow perfecly legal tax deductions merely because it judges that the deduction lacked “economic substance” (whatever in the world THAT means).
Looks like a vote of “No Confidence” to me.
So far, we have only addressed increased taxes on us “little people.” How about increased taxes on business? We all know the Obama administration is woefully short on real-world business acumen. ATR says, “Small businesses can normally expense (rather than slowly deduct or depreciate) equipment purchases up to $250,000. This will be cut all the way down to $25,000. Larger businesses can expense half of their purchases of equipment now. Starting in January 2011, all of it will have to be depreciated.” The ATR goes on to say, “Literally scores of tax hikes on business will take place, plus the loss of significant tax credits. The research and experimentation tax credit will be the biggest loss, but there are many many others. Combining high marginal tax rates with the loss of this tax relief will cost scores of jobs.”
I am very tired of trying to explain significantly increased taxes to cretins. Guess that is not so unusal as cretins happen to be running things in America “temporarily.” (Emphasis on the word “temporarily.”) Right now the cretins in Washington are wringing their hands trying to determine why so many people remain out of work and (now) are going to realize even more weeks of unemployment. Sir…people are out of work because the private sector, that means businesses, Sir, are not about to hire at this point. They know what you are about, Sir, and they DO NOT trust you. And neither do I.