RunRyder RC
WATCH
 1 page 662 views Post Reply
Home🌌Off Topics🌌Off Topics News & Politics › Morning Bell: Beware the Taxmageddon
04-05-2012 06:39 PM  9 years ago
Topic Vote0Post 1
Dennis (RIP)

rrApprentice

Oregon

MyPosts All Forum Topic
Morning Bell: Beware the Taxmageddon
Morning Bell: Beware the Taxmageddon

Mike Brownfield April 5, 2012

Brace yourself. In a mere 271 days, you and your fellow Americans will be hit with a tax hike the likes of which this country has never seen. The Washington Post aptly called the unprecedented $494 billion tax hike “Taxmageddon,” and Federal Reserve Chairman Ben Bernanke described it as a “massive fiscal cliff.” Whatever your preferred imagery, it’s a really big deal.

Despite all the warnings, President Barack Obama has kept his silence while Congress has made no apparent effort to prevent this impending calamity to families and the economy. The prevailing wisdom is that “something will get done” in a lame duck session of Congress after the election. But why wait? And why after the election?

Here’s why you should be worried. For starters, remember that this is the same President who in 2009 promised, “if your family earns less than $250,000 a year, you will not see your taxes increased a single dime.” That’s a vow he’s broken, and in 2013, things are going to get even worse if this year Obama doesn’t lead and Congress doesn’t act. Katy, bar the door, there’s big trouble in store.

The tax man won’t draw his billions from the American taxpayer with just one big needle — the massive tax increase will be the product of tax policies expiring in seven different categories, on top of five new Obamacare tax hikes taking effect. In a new paper, Taxmageddon: Massive Tax Increase Coming in 2013, Heritage’s Curtis Dubay details the tax hikes that will occur if President Obama and Congress do not act before the end of the year:

Almost 34 percent of the tax increase from Taxmageddon comes from the expiration of the 2001 and 2003 Bush tax cuts. These cuts are best known for reducing marginal income tax rates, but they also reduced the marriage penalty, increased the Child Tax Credit and the adoption credit, and increased tax breaks for education costs and dependent care costs.

Another 25 percent of Taxmageddon comes from the expiration of the once-temporary payroll tax cut. The expiration of the patch on the Alternative Minimum Tax (AMT) — which would raise the income threshold over which families qualify for the AMT to prevent middle-income families from paying this tax that is only supposed to impact “the rich” — accounts for 24 percent of the total potential 2013 tax increase.

The balance of the tax hikes comes in part from new taxes under Obamacare, the expiration of tax cuts in the 2009 stimulus, the expiration of a group of policies known as “tax extenders,” changes in the current policy on the death tax (in 2013, it will rise from 35 percent today to 55 percent and the exemption will fall from $5 million to $3.5 million), and the expiration of businesses’ ability to fully expense new capital investments.

This $494 billion in higher taxes will certainly hit families and business hard in 2013, but their effects are already being felt. Dubay explains that Americans must plan for tomorrow, and the tremendous uncertainty about tax policy makes the future much more uncertain, thus discouraging the investments and other actions needed to spur the economy to create jobs faster today.

So while the President and Congress appear content to put off ’til the 11th hour what they can and should do today, those who will have to pay the higher tax burden are waiting to see what the future holds. Dubay says that this is “slowing job creation and stopping many of the millions of unemployed Americans from going back to work.”

Early on in his presidency, Barack Obama said he knew about the impact of taxes. Back in 2009, on a visit to Elkhart, Indiana, Obama emphatically stated his belief that raising taxes in a recession is a bad idea. Though America is not in recession today, it still struggles with very high unemployment, and so the President’s logic applies with equal force — raising taxes is a drag on job creation. Unfortunately, in a speech in Washington on Tuesday, President Obama unabashedly revealed that preventing tax hikes is not his priority. In fact, he wants to see even more taxes imposed on the American people and on job creators all in the name of “fairness” — many of which are in his budget. That’s a political doctrine, not an economic policy, and it’s a proven recipe for economic disaster.

If the President doesn’t work with Congress to take action soon to prevent a 2013 Taxmageddon, his brand of “fairness” will result in the biggest tax increase in the nation’s history. And that storm will wreak even more damage on America’s already fragile economy. Congress shouldn’t wait for Obama to take the lead in preventing a policy nightmare he might actually favor. Instead, it should act now to prevent these tax hikes from crushing America’s families and our economy.

http://blog.heritage.org/2012/04/05...=Morning%2BBell
Liberty once lost, is lost forever.
SHARE  PM  EMAIL  GALLERY  Attn:RR  Quote
04-05-2012 07:18 PM  9 years ago
shawmcky

rrElite Veteran

Isle of Wight,United Kingdom

MyPosts All Forum Topic
You have already had the economic disaster,the high taxes are to help pay for it,welcome to debt reality.Look at Europe taxing folks that have little left to tax The world is in a mess.Team- unbiased opinion.K.I.S.S principle upheld here
SHARE  PM  EMAIL  GALLERY  Attn:RR  Quote
04-06-2012 02:05 PM  9 years ago
Inspector Fuzz

rrKey Veteran

NLA

MyPosts All Forum Topic
Raising won't stop whashing from defecit spending.

If you they are comfortably being running a defecit then they are comfortable with it. Doesn't matter how much money comes in, there is always a vote to buy or something to spend it on.
SHARE  PM  EMAIL  Attn:RR  Quote
04-06-2012 06:09 PM  9 years ago
SSN Pru

rrElite Veteran

Taxachusetts

MyPosts All Forum Topic
We contend that for a nation to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle.
-Winston Churchill
Stupidity can be cured. Ignorance is for life!
SHARE  PM  EMAIL  GALLERY  Attn:RR  Quote
04-06-2012 06:13 PM  9 years ago
Dennis (RIP)

rrApprentice

Oregon

MyPosts All Forum Topic
You have already had the economic disaster,the high taxes are to help pay for it,welcome to debt reality.
Higher taxes will not pay for the economic disaster.

All higher taxes will do is shift the burden to the tax payer rather than cutting government. Also, there is no tax increase that will be enough to even come close to the debt they have created.

In addition, all higher taxes will do is signal Washignton DC that the tax payer accepts the incompetence of Washignton DC and that they can go ahead and keep being incompetent and not cut any of their perks. In fact, they would be given the signal to go ahead and create more debt.

Liberty once lost, is lost forever.
SHARE  PM  EMAIL  GALLERY  Attn:RR  Quote
04-06-2012 06:24 PM  9 years ago
baby uh1

rrVeteran

St. James, Mo.

MyPosts All Forum Topic
Any tax increases should be tied to budget cuts of ten times the amount of the tax increase. Period!
That would fix our problem!
Anything is possible if you don't know what you are talking about!
SHARE  PM  EMAIL  GALLERY  Attn:RR  Quote
04-06-2012 08:51 PM  9 years ago
shawmcky

rrElite Veteran

Isle of Wight,United Kingdom

MyPosts All Forum Topic
Is there enough money anywhere to pay for the economic disaster? Or just to pay the interestTeam- unbiased opinion.K.I.S.S principle upheld here
SHARE  PM  EMAIL  GALLERY  Attn:RR  Quote
04-07-2012 01:10 AM  9 years ago
fla heli boy

rrElite Veteran

cape coral, florida

MyPosts All Forum Topic
that's what I say Baby. Watch the Dems squeal like stuck pigs.
SHARE  PM  EMAIL  GALLERY  Attn:RR  Quote
WATCH
 1 page 662 views Post Reply
Home🌌Off Topics🌌Off Topics News & Politics › Morning Bell: Beware the Taxmageddon
Print TOPIC

 3  Topic Subscribe

Thursday, July 29 - 10:24 am - Copyright © 2000-2021 RunRyder   EMAILEnable Cookies

Login Here
 New Subscriptions 
 Buddies Online