Taxmageddon is a dreadful combination of expiring pro-growth tax policies from 2001 and 2003, the end of the once-temporary payroll tax cut, and some of Obamacare’s 18 new tax hikes. It will be the largest tax increase to ever hit the U.S. This drastic tax increase begins on January 1 and represents $500 billion over the course of just one year.
Here’s a per person breakdown of that $500 billion, from The Heritage Foundation:
- Families with an average income of $70,662: tax increase of $4,138
- Baby boomers with an average income of $95,099: tax increase of $4,223
- Low-income workers with an average income of $24,757: tax increase of $1,207
- Millennials with an average income of $23,917: tax increase of $1,099
- Retirees with an average income of $42,553: tax increase of $857
And, there’s more…
Another recession has been forecast by the Congressional Budget Office (CBO). In addition to that, the tax hikes will have major impact on small businesses, specifically small businesses that create jobs!
Curtis Dubay, writing for The Heritage Foundation explains:
“The businesses that would pay the higher tax rates proposed by President Obama earn almost all the income earned by small businesses that employ workers. According to President Obama’s own Treasury Department, these job creators earn 91 percent of the income earned by flow-through employer-businesses. These are the biggest, most successful small businesses. They employ more than half the private workforce, according to an Ernst and Young study. Raising their taxes would destroy more than 700,000 jobs.”
Taxmaggedon needs to be reversed but Congress has failed to sufficiently address it. The house did pass a bill that would circumvent most of Taxmaggedon but the Harry Reid led Senate failed to complete the process.
The Senate passed a bill as well, but it only stops a small portion of Taxmageddon. And, the bill is far from being ideal–it continues the Bush tax policies only for those taxpayers earning less than $250,000 a year. In essence, it is a tax increase on job creators.
The responsibility now falls on the next Congress which will take office on January 3rd. But, there is no guarantee that it will be reversed.
Be sure to check out this infographic on how Taxmaggedon will impact you.
Wow! I knew Obama’s “plan” would be brutal to the American taxpayer, but when you take it out of the abstract, and look at actual numbers…the impact is going to be devastating. A tax increase of this magnitude will be catastrophic to the fiscal viability of so many small businesses and families across the country.
When you hear Obama say he won’t raise taxes on the middle class…don’t believe him. These people are expert at double-speak. To them…cancelling a tax cut does not equal a tax increase. Yet, the result is exactly the same: the government takes more of your money, and you have less to spread across all your expenses.
Don’t think for a second Obama doesn’t know what the results of these tax increases will be. Keep in mind…to him, adding people to government assistance is a good thing. If his policies push you into poverty to the point that you turn to the government, he has accomplished his ends.
This must not be allowed to happen. Please share this with everyone you know. Those who are not as wide awake as you are need a hard reality check before Nov. 6. Great article, Candice.
Posted by Red Pill Report | November 1, 2012, 7:34 amYes, indeed. He definitely knows what his fiscal policy will lead to and it’s really disconcerting to know what his end goal is.
Posted by Candice Lanier | November 1, 2012, 9:51 pmWe are retired, in our mid-seventies, and on a fixed income. We say “fixed income,” but in reality it is an ever-shrinking income due to (1) years of cancelled COLA’s (cost-of-living-adjustments) and strategically-planned inflation fanned by Bernanke’s newly-printed monopoly money flooding in to buy back government bonds, and (2) the dramatic increase in the cost of our health-care triggered by Obamacare (there was a conspiracy between AARP and Obama in which AARP raked in billions of dollars for betraying retired people and endorsing the $700+ billion plunder of Medicare funding). All we need at this point is a sizable increase in our tax burden. (Notice I called it an increase in our tax burden instead of a tax increase because Obama refuses to call it a tax increase when it is expiring, long-standing tax cuts.) “What’s in a name? A rose by any other name would smell as sweet.” (Shakespeare) So, an increase in our tax burden by any other name would still stink.
Let us see Obama joining our ranks of retired people. Too bad he retires to royal treatment. This is another problem that cries for a “fair and balanced” resolution. His retirement should resemble ours (but not until he is 67 years of age).
Posted by Linus | November 1, 2012, 8:49 amI agree. I think that all three branches of government should be subject to the same laws that govern the rest of us. I’m thinking, in particular, of ObamaCare. I think congress would be a lot more careful about passing laws, if they weren’t exempt from them, like they are in the case of ObamaCare.
Posted by Candice Lanier | November 1, 2012, 9:28 pmObama spouts off about protecting the middle class. The middle class has been crushed… Then he implements policies that will crush them even more while telling them that they are the people he is looking out for. What a joke of a president. I can’t wait to hear Romney’s victory speech! (Predicting huge win!)
Posted by Cucciolo | November 1, 2012, 9:53 amI am looking forward to that speech, too
Posted by Candice Lanier | November 1, 2012, 9:11 pm