Obama’s Latest Tax Hike Blunder
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| Gary Varvel depicts Obama's created sacrifice |
1. Most voters will doubt the tax hikes will in fact be limited to the rich – and for good reason, because the president has already repeatedly raised middle-class taxes. In this case, middle-income Americans who built up value in a home their entire lives will be “rich” according to Obama in the one year they sell that home – and subject to a hefty tax hike.
2. The impact of not canceling the tax hikes on capital gains and dividends, in particular, will have a widespread effect far beyond the initial incidence of the tax. That’s because the dividend tax hike – a near tripling from 15 percent to 43.3 – will trigger a massive stock market sell-off that will wallop the retirement accounts of people of all income levels.
3. With deteriorating economic fundamentals, many voters are concerned with finding jobs or keeping the ones they have. So a huge tax hike on small businesses – who comprise the overwhelmingly majority of upper-income individual tax filers – will impact not just businesses but every worker on the margin of being hired or laid off.
4. Allowing the death tax to jump from its current 35 percent rate above $5 million to a confiscatory 55 percent rate above $1 million will put a lot of family businesses and farms out of business. It’s also one of the most hated taxes of all, making his plan even more politically problematic for vulnerable Senate Democrats.
2. The impact of not canceling the tax hikes on capital gains and dividends, in particular, will have a widespread effect far beyond the initial incidence of the tax. That’s because the dividend tax hike – a near tripling from 15 percent to 43.3 – will trigger a massive stock market sell-off that will wallop the retirement accounts of people of all income levels.
3. With deteriorating economic fundamentals, many voters are concerned with finding jobs or keeping the ones they have. So a huge tax hike on small businesses – who comprise the overwhelmingly majority of upper-income individual tax filers – will impact not just businesses but every worker on the margin of being hired or laid off.
4. Allowing the death tax to jump from its current 35 percent rate above $5 million to a confiscatory 55 percent rate above $1 million will put a lot of family businesses and farms out of business. It’s also one of the most hated taxes of all, making his plan even more politically problematic for vulnerable Senate Democrats.
The bottom line is the smart economic and political play was to say no more tax hikes this year, period. Now we have to watch another Washington game of chicken with the U.S economy teetering in the balance. Obama failed another test of leadership.
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Phil Kerpen. He is the president of American Commitment where he first shared this article; a columnist on Fox News Opinion, and the author of Democracy Denied: How Obama is Bypassing Congress to Radically Transform America – and How to Stop Him. Phil Kerpen is a contributing author for the ARRA News Service.
Tags: Phil Kerpen, President Obama, Tax Hike Blunder, middle-class tax hike, Fix the Tax Code, Promote Economic Growth, political cartoons, Gary Varvel To share or post to your site, click on "Post Link". Please mention / link to the ARRA News Service. Thanks!
Posted by Bill Smith at 8:12 PM - Post Link
4 Comments:
The Nation will wake up to massive middle class tax increases come January and won't even realize what hit them until they all take effect, to late to do anything about them or their progenitor.
If you RAISE TAXES to pay for Health Care and those Taxes come from the Middle Class......and you propose to allow the Bush Era Tax Cuts to expire on people who make $250 or less....What is the end RESULT? A TAX INCREASE ON THE MIDDLE CLASS AND THE HIGHER INCOME TAX LEVELS. Sounds like a GREAT PLAN.
John Trask And then you add on to that the proposed NEW SMALL BUSINESS TAX, holy hell the Economy will take a HUGH HIT as well as the MIDDLE CLASS ONCE AGAIN. This is nothing more than SIMPLE Economics 101, taught in any College or University in the US. I thought Mr. President was a Harvard Grad. He must have been absent the day that Economics 101 was discussed.
John - well said. Who knows if he ever even studied Economics 101. We have been denied seeing any of his college / university transcripts and therefore know nothing about his education but what he declares to be true. And so far "truth" has not proven to be a strong point of his administration.
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