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.