I know it’s a little early to be wishing for a “happy new year, but New Year’s Day is when many tax cuts, tax breaks, and tax benefits are ready to end.
This “financial holocaust” has the potential of being so destructive; it could send the recovering economy back into a full-blown recession.
According to CBN News:
“A tax increase so massive is headed America’s way January 1, some congressional aides are calling it “Taxmageddon.” Federal Reserve Chairman Ben Bernanke warns these tax hikes, along with simultaneous spending cuts, could lead to major problems for the weak economy. ‘There’s going to be a massive fiscal cliff of large spending cuts and tax increases,’ the Fed chief recently told a congressional panel.”
Here is the reality of the Barack Obama “Happy New Year”—
ONE-HALF TRILLION DOLLARS OF TAX INCREASES ARE SCHEDULED TO HIT YOU ON JANUARY 1, 2013!
Heritage Foundation’s Curtis Dubat reports: “It’s $500 billion of higher taxes just in 2013 alone!”
“A tax hike of that size for just one year is simply unprecedented. It’s going to take an enormous chunk of the economy out of the hands of the businesses and people and families that earned the income and give it to Congress to spend.”
On January 1, 2013, here is what will happen:
- The Bush-era tax cuts will expire!
- The fix of the marriage penalty will stop, meaning many married couples will all of a sudden have to pay MORE taxes
- Social security payroll tax, now at 4.2 percent, will be reinstated to 6.2 percent
- The Alternative Minimum Tax will be reestablished , which means many more middle-income Americans will get treated like the wealthy in the eyes of the IRS and taxed much more
- Parents who were writing off $1,000 in taxes for each of their children, will now only be allowed to write off $500
- All this and I haven’t even mentioned all the new taxes imposed by Obamacare. I don’t think anyone has an exact figure how much this will be because of the complexity of “Obamacare law”.
Please make sure that the Obama way of thinking is reversed; and the “Bush tax cuts” are extended.
Come January 1—Federal Reserve Chairman Ben Bernanke calls it a “massive fiscal cliff.”
Americans will experience their taxes going up $494,000,000,000, at the beginning of 2013!!
According to the Washington Times: “It all breaks down to one of the most sizable tax bills in history. Every household in America would face an average tax increase of $3,800 in a single year! That’s not all. The estate tax, known more accurately as the death tax, rises to 55 percent. The 100 percent exemption for business investment goes away. Also among the soon-to-be-missing: the patch that lawmakers passed to ensure that the Alternative Minimum Tax (AMT) doesn’t snare more and more middle-income earners (instead of the super-rich it was originally designed for)!”
American households will be hit with an average tax increase of $3,800! YOU!
The tax on dividends, among others, which many seniors rely on, would increase from 15 percent to as high as 39.6 percent!
The payroll tax of $124 BILLION would also be finished!
The expiring “Bush tax cuts” would hit all income groups, but those at low and middle incomes would be hit the hardest.
“Taxmageddon” not only affects the rich, but almost THREE-FOURTHS of it will hit the middle and low income families.
Jim Capretta, former official with the White House Office of Management and Budget, who now works for the Ethics and Public Policy Center, says that January 1 would means “an economy that’s about one to two percentage points smaller than it otherwise would have been, and unemployment that’s a full percentage point higher than it otherwise would have been.”
Here is the reality of what is happening in the world today. Businesses do not know what the future tax rate and penalties will be in the future. It makes it extremely hard to hire more or less workers, or even plan for the future, not knowing what the future of their business holds, via the government laws.
Both the economy and the individuals taxpayers, forget the small business owner for the moment, are in an arena of UNCERTAINTY, until the government acts upon the economy! This uncertainty will obviously keep the unemployment rate high.
Tax extenders and income tax rates are still up in the air!
In the marketplace, there is a fierce anxiety as well as fear of financial disruption.
The massive debt is unsustainable!
Mr. Obama has not understood that: THE MASSIVE DEBT IS UNSUSTAINABLE!
But he will continue to “kick the can down the road” especially during an election year.
But the end is near in sight. The can cannot be kicked down the road any more. It is time to “face the music.” But Barack Obama will dance around it until after the elections.
Mr. Obama is sticking to his 2008 campaign theme that taxes must not go up on anybody making less than $250,000 a year. Obama does want to make sure that the taxes do go up for anyone making more than $250,000 a year.
But even Warren Buffet questions the Obama “Buffett Rule” which imposes a minimum tax of 30 percent on those making over $1,000,000,000. However, the richest 10 percent of earners pay about 70 percent of all federal income taxes!
The mere threat of the massive tax hike is already having an impact on the economy. Business owners and corporations are putting off growth, which means they will also be putting off hiring. That kind of rise in taxes could destroy any chance to climb out of this economic hole. Not only will income tax rates shoot up, but also the child credit will be cut in half, the marriage penalty will be back in place, the capital gains tax rate will rise, the dividend tax rate will rise, the payroll tax rate will jump two percentage points, the Marxist estate tax/death tax will be restored to its punitive past, the Alternative Minimum Tax relief will expire, and a new additional payroll tax hike from Obamacare takes effect.
Higher taxation is only the tip of the iceberg, however. The result of the taxation on any chance for economic growth, job loss, and a second wave of foreclosures will be devastating.
In January 2007, when the Democrats took control of Congress, the unemployment rate was 4.6%. In 2007, the number of people not in the workforce was only 79 million. In short, under Obama almost 9 million Americans have fled the workforce, and our economy has plunged into an abyss.
Obama’s job-killing policies have been so damaging that the democrats are even trying to cover up what they’ve done. Internal e-mails disclosed by the House Natural Resources Committee show that a report on the administration’s doctored drilling moratorium analysis, issued by the Department of Interior’s Inspector General’s office, was itself incomplete, misleading and unsubstantiated. Even worse for Obama and gang is that the documents reveal the White House actively blocked investigators and Obama’s administration has continually refused to comply with subpoenas.
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