It’s no surprise that the economy is sputtering:
The Obama administration has done its best to attack the private sector ever since it came to power. Its regulatory expansion, its massive and little-understood bills governing health care and the financial sector, its attacks on business in the media and before Congressional committees, and its push for cap-and-trade, card check, and other anti-business legislation have sown vast uncertainty. It’s easy to forget, amidst all of that, that the largest tax increase in history is headed our way January 1. You think you’re safe, because you make less than $250,000 a year? Think again. This is only the beginning:
– The 10% bracket rises to an expanded 15%
– The 25% bracket rises to 28%
– The 28% bracket rises to 31%
– The 33% bracket rises to 36%
– The 35% bracket rises to 39.6%
Higher taxes on marriage and family. The “marriage penalty” (narrower tax brackets for married couples) will return from the first dollar of income. The child tax credit will be cut in half from $1000 to $500 per child. The standard deduction will no longer be doubled for married couples relative to the single level. The dependent care and adoption tax credits will be cut.
The return of the Death Tax. This year, there is no death tax. For those dying on or after January 1 2011, there is a 55 percent top death tax rate on estates over $1 million. A person leaving behind two homes and a retirement account could easily pass along a death tax bill to their loved ones.
Higher tax rates on savers and investors. The capital gains tax will rise from 15 percent this year to 20 percent in 2011. The dividends tax will rise from 15 percent this year to 39.6 percent in 2011. These rates will rise another 3.8 percent in 2013….
The AMT will ensnare over 28 million families, up from 4 million last year. According to the left-leaning Tax Policy Center, Congress’ failure to index the AMT will lead to an explosion of AMT taxpaying families—rising from 4 million last year to 28.5 million. These families will have to calculate their tax burdens twice, and pay taxes at the higher level. The AMT was created in 1969 to ensnare a handful of taxpayers.
Oh, yes. Prepare to add a lot to that to cover the costs of Obamacare. It’s hard to say how much, but here’s an indication: Germany is raising the health care premium to 15.5% of gross pay. Think about that for a while.