Where’s Obama? Taxmageddon – The Coming $500 Billion Tax Hike

US President Barack Obama smiles during

Obama and the Democrats, who like to portray themselves as champions of working class Americans (at least those who still have jobs!) have been strangely silent about the massive tax hike coming at the end of this year – a half trillion dollar wallop that will raise the tax rate of those in the lowest bracket by an astounding 50%! From Fox News:

At the end of the year, some $500 billion in tax breaks expire all at once, hitting American households with an average tax increase of $3,800 dollars — if Congress doesn’t act.

The potential increases include $165 billion more from taxpayers as a result of expiration of the Bush-era tax cuts, which would push taxes from a bottom rate of 10 percent and a top rate of 35 percent to a bottom rate of 15 percent and a top rate of 39.6 percent.

“Taxmageddon is a $500 billion, one-year tax hike that hits the economy on Jan. 1, 2013,” Curtis Dubay of the Heritage Foundation said.

It would cut the child tax credit by half, from $1,000 dollars a child to $500.

The marriage penalty would return.

The tax on dividends, which many seniors rely on, would soar from 15 percent to as high as 39.6 percent. A separate $124 billion cut in the payroll tax would end.

And a temporary fix to the alternative minimum tax would be erased. The tax originally was aimed at millionaires, but it could would hit some 34 million taxpayers next year.

“Almost the entire tax code has been put on a year-to-year lease, and in some cases, month-to-month lease, which is no way to run a tax system,” Scott Hodge of the Tax Foundation said.

The expiring cuts would hit all income groups but those at low and middle incomes the hardest.

“Taxmageddon falls 70 percent on middle and low income families. That’s because 60 percent of the Bush tax cuts were for middle- and low-income taxpayers,” Dubay said. The payroll tax cut was aimed at the same taxpayers.

Now, everyone knows just how desperately Obama and the Democrats are to raise taxes, and to do away with the so-called “Bush tax cuts.” But the tax hikes coming next January 1st hit low and middle income families hardest, and $3800 per family is one helluva price for Americans to pay for liberals’ Bush Derangement Syndrome and their misunderestimation of the importance of economic growth and how the nation’s economy actually functionss.

The US economy grew at a paltry 1.7% last year, despite Obama’s lofty 4% to 4.5% projections. The article goes on to note that “Taxmageddon” could shave as much as 2% off next year’s GDP growth, which at best would put the country’s economy back to zero growth, and at worse potentially back into recession.

Knowing all this, Team Obama is still too devoutly focused on it’s class warfare campaign and the so-called “Buffett Rule” to say or do anything about this pending financial holocaust. Apparently, Obama and the Left will take any tax hike they can get… no matter who gets hurt.

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  • SigFan

    “Taxmageddon falls 70 percent on middle and low income families. That’s because 60 percent of the Bush tax cuts were for middle- and low-income taxpayers,” Dubay said. The payroll tax cut was aimed at the same taxpayers.”

    But, but – the Bush tax cuts were for those evil rich people.  Obama said so. 

    Just goes to show that if a lie is repeated often enough foolish people and Democrats (redundant) will believe it.

  • Jay

    Typical leftwingers. This quote from a famous movie reflects what I Romney and the GOP do to Obama and the Dems in November:

    “…crush your enemies, see them driven before you, and hear the lamentations of their women.”

  • headward

    Watch revenue start to fall after the hike in the rates.

  • WOOF

    The only people who want to tax the poor are Republicans.
     Watch them cave again on this as they caved before on deficit ceilings.

    • factsarefacts

      “The only people who want to tax the poor are Republicans.”

      Really?  You’ve figured out our party.  That’s been our platform all along. 

    • Jfisher17

      The only people wanting to give a free ride to the almost 50% that pay no income tax are Democrats. 

    • donwalk

      Are you stating that B.O. wants to renew the expiring tax cuts? Why hasn’t he publicly proclaimed that? Particularly if he doesn’t want to tax the poor and the middle class.
      You are really going out on a limb claiming that Republicans will cave and let the tax breaks expire without attempting to renew them.

    • Guest

       Be patient woofy. Come January you’ll see all the huge tax increases your little heart desires. Everyone will get hit, real hard.

  • mickey_moussaoui

    Just wait until 2013 when obama’s tax plans kick in….there will many more “poor”

  • Rtc933

    Good. It’s about time the lower class people don their part and stop mooching of the higher income Americans.