Beware Obama’s Taxmageddon
The Heritage Foundation in its Morning Bell blog this past week had an interesting post called “Beware the Taxmageddon — In a mere 271 days, you and your fellow Americans will be hit with a tax [increase] the likes of which this country has never seen. The Washington Post aptly called the unprecedented $494 billion tax hike ‘Taxmageddon,'” the Washington Post called it that! The “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.”
Grand total of twelve new tax increases coming, and here are some of the details: “‘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, [the Bush tax cuts] increased the Child Tax Credit and [the Bush tax cuts increased] the adoption credit, and [the Bush tax cuts] increased tax breaks for education costs and dependent care costs.'” That’s all gone when they expire. “‘Another 25 percent of Taxmageddon comes from the expiration of the once-temporary payroll tax cut.