There Are At Least 13 Tax Increases in 2013
Curtis Dubay, Morning Bell: New Year’s Day was tough for taxpayers. Thirteen tax increases kicked in. The deal that Congress and President Obama struck that finally — but only partially — avoided the fiscal cliff resulted in seven tax increases.
Those hikes combined with six tax increases from Obamacare that also began on New Year’s Day.
13 Tax Increases That Started January 1, 2013
Tax increases the fiscal cliff deal allowed:
1. Payroll tax: increase in the Social Security portion of the payroll tax from 4.2 percent to 6.2 percent for workers. This hits all Americans earning a paycheck—not just the “wealthy.” For example, The Wall Street Journal calculated that the “typical U.S. family earning $50,000 a year” will lose “an annual income boost of $1,000.” [While this is an increase from the former day's rate, really, it is only a return to the established level of contribution to social security which Obama had pushed to be temporarily lowered to gain more votes and an attempt to stimulate the economy by ripping of the contributions to the security fund.]
2. Top marginal tax rate: increase from 35 percent to 39.6 percent for taxable incomes over $450,000 ($400,000 for single filers).
3. Phase out of personal exemptions for adjusted gross income (AGI) over $300,000 ($250,000 for single filers). [Why should these people be treated fairly, obviously they must make too much money to be a reasonable human being.]
4. Phase down of itemized deductions for AGI over $300,000 ($250,000 for single filers).
5. Tax rates on investment: increase in the rate on dividends and capital gains from 15 percent to 20 percent for taxable incomes over $450,000 ($400,000 for single filers).
6. Death tax: increase in the rate (on estates larger than $5 million) from 35 percent to 40 percent.
7. Taxes on business investment: expiration of full expensing—the immediate deduction of capital purchases by businesses. [Another penalty on small businesses which are not C-corps. They cannot retain a reserve of non-taxed income to make future purchases of equipment or buildings and are often denied the ability to pay on time thereby using future earnings.]
Obamacare tax increases that took effect:
8. Another investment tax increase: 3.8 percent surtax on investment income for taxpayers with taxable income exceeding $250,000 ($200,000 for singles). [So, those who paid (invested their money) for their own future retirements now have to not only have to pay 85% on their social security because they have too much income but they also have to pay a penalty tax above the income tax on their investment income.]
9. Another payroll tax hike: 0.9 percent increase in the Hospital Insurance portion of the payroll tax for incomes over $250,000 ($200,000 for single filers).
10. Medical device tax: 2.3 percent excise tax paid by medical device manufacturers and importers on all their sales. [Talk about stealing needed funds from Granny and GrandPa! Along with the cost needed of medial supplies (devises), they now have to pay a penalty tax for living and not only on wheelchairs, adjustible medical beds, pacemakers, etc. but they will be pating a tax for all items labeled by DHHS as medical devises but right down to very smallest of items. Looks like Government is unmecifully taxing the sick and the infirmed.]
11. Reducing the income tax deduction for individuals’ medical expenses. [Sorry, if it costs you to much to live. If you have to pay all or most of your income on medical, too bad, Government wants the money.]
12. Elimination of the corporate income tax deduction for expenses related to the Medicare Part D subsidy.
13. Limitation of the corporate income tax deduction for compensation that health insurance companies pay to their executives. [It is time for members of Congress, the President, Vice president, justices and judges and all other appointed and employed federal employees to be limited in their medical care on the same pro-rated basis as those in the private sector are limited. The only exemption are active duty and retired military who are forced to accept what ever medial services are offered. And while were at it, let's tax Government elected and appointed officials and senior level government employees on their "platinum" benefits programs.]
Each of these 13 tax increases will slow the economy, meaning that businesses will create fewer jobs. Fewer jobs will make it even more difficult to land a job than it already is for the more than 12 million Americans looking for work.
President Obama demanded these higher taxes. Obama’s tax increases, in Obamacare and through the fiscal cliff deal, will not curb deficits and debt, because growing spending is driving America’s budget crisis. Congress needs to immediately turn its attention to the actual cause of our deficit and debt problem: too much spending. The proper way to address this problem is through reforms to entitlement programs.
President Obama promised the American people a “balanced approach” of tax increases and spending cuts to reduce deficits and debt. He has achieved the tax increase portion of that approach. Now Congress needs to force him to follow through on the spending cuts portion.
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