Here’s a list of President Obama’s tax increases that are scheduled to kick in, in six short months. The list is from the IPI’s TaxBytes.
- Bush tax cuts expire. Obama has steadfastly refused to extend them beyond 1 Jan 13 unless the Republicans accede to his demand to raise taxes elsewhere under the Progressive fiction that tax cuts must be “paid for” with tax increases rather than spending cuts.
- Obama payroll tax cut expires. This is a tax cut that has made absolutely no sense whatsoever. It’s only useful purpose has been to bamboozle Republicans as they continue to make a hash of their messaging. This cut reduced funding for an already dysfunctional and rapidly approaching bankruptcy Social Security system, while at the same time the Democrats in government have absolutely refused to allow any reform of that system.
- The child tax credit will be reduced from its current $1,000 per child to its original $500.
- The death tax will explode. In 2010, the death tax—the tax on your estate, collected by the Feds before your heirs get a dime—had been repealed, but only for that year. This year, and this year only, that death tax was 35% (!) of the value of your estate above $5.12 million. On 1 Jan, it will go to 55% (!!) of the value of your estate above $1 million. The Feds think they deserve your money more than your heirs do.
- Obamacare taxes (this is not an exhaustive list):
- If you’re rich (which Obama defines as you making $250k or more per year, or your family making $200k or more*), the Hospital Insurance Tax goes up: the hospital insurance portion of your payroll tax will rise from 2.9% to 3.8%. This is carefully not indexed for inflation, either. At current inflation rates, that means that in 10 years’ time, that rich threshold drops to the equivalent of today’s $190k ($152k for families).
- Medical device manufacturers will begin being charged a 2.3% excise tax on top line revenues—not even on profits. There’s a pro-business move….
- Medical deductions on your personal income tax (whether you’re “rich” or not) will have to exceed 10% of your adjusted gross income instead of the current 7.5%. This certainly helps the less fortunate among us.
*Notice that: here’s the marriage penalty back, too.