Tax and Spend GOP

from Conservative Review:

Pain at the pump! GOP considers gas tax increase

On Monday morning, President Trump took to Twitter to announce a “big week for Infrastructure” (again) as the administration is set to roll out a $1.5 trillion plan to invest in American infrastructure. The administration claims that by relying on state and local governments, and with reductions in the federal budget, the cost to the federal government will be just $200 billion. read more

Like ObamaCare – Bernie’s Medicare-For-All will Cost You

by: the Common Constitutionalist

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Did you hear the good news? The left appears to be giving up on single-payer healthcare – or at least is one leftist.

Okay – not quite. Actually not at all. Socialist front man, and member of the richest 1 percent, Bernie Sanders, who has pushed single-payer for a while now, no longer speaks of it.

Sanders now trumpets Medicare-for-all. It’s the same thing. He just changed the name to something probably focus-group tested that sounds more attractive. Bernie wishes “to provide quality care to all, in a cost effective way.” He states that, “while your taxes may [will] go up to pay for this publicly funded program, that expense will be more than offset by the money you are saving by the elimination of private insurance.”

By saying it’s publicly funded, it sounds like he’s selling it as free healthcare for all – and I’ll guarantee you, this is what his followers are hearing. Well, it’s not free. He never says anything about how much the “free” government system will cost you and me. Anyone currently on Medicare can confirm it is hardly “free.”

First, as Sanders admits, are increased taxes. How much will this be? No one knows. Know one can possibly know. Just be assured that it will be significant. read more

Pay – Per – Mile

New pay-per-mile scheme would boost taxes 250 percent

An on-again, off-again move by the Obama administration to scrap the federal gas tax in favor of a pay-per-mile fee would boost the tab to Americans as high as 250 percent, raising their current tax of 18.4 cents a gallon to as high as 46 cents, according to a new government study.

But without a tax increase, said the Government Accountability Office study, the government’s highway fund is going to go dry. One reason the fund is going broke: President Obama’s push for fuel efficient cars has resulted in better mileage, and fewer stops at the pump.  Continue Reading

Middle Class Tax…Increase

13 Tax Increases Just Went Into Effect – Obama: “I Won’t Raise Taxes on Middle Class America”

If I had $100 for every time I heard Barack Obama promise us that he would not raise taxes on middle class Americans, I could afford to take my family on a Hawaiian vacation.

Between the fiscal cliff resolution which wasn’t a resolution after all, and Obamacare, there are 13 new tax increases that will directly or indirectly impact everyone in America, including the middle and poverty class people.

Taxes with a direct impact on the middle and poverty class:

1.  Right off the bat, the fiscal cliff agreement that would only raise taxes on the wealthy, just raised EVERYONE’S payroll Social Security tax by 2%.  The old rate was 4.2%, but that was raised for everyone across the board to 6.2%.  A family making a combined gross of $50,000 will pay an additional $1,000 in Social Security taxes.  Right there Obama broke his promise and proved to the entire nation that he is a blatant liar and that his word can never be trusted.  Not exactly a trait you want in your national bleeder, I mean leader.  Continue Reading at GodFather Politics 

Obamacare is Coming! Hide Your Wallets!

These are the Top 5 Worst Taxes ‘Obamacare’ Will Impose in 2013

from:  at The Blaze

The Grover Norquist-founded Americans for Tax Reform, a 501(c)(4) lobbying group that opposes “all tax increases as a matter of principle,” on Friday released a list of what, they say, are the top five worst taxes The Patient Protection and Affordable Care Act (i.e. “Obamacare”) will impose on Americans in 2013.

Here they are [all block quotes via the report]:

The ‘Obamacare’ Medical Device Tax

Americans For Tax Reform Releases a List of the Top 5 Worst Taxes Obamacare Will Impose in 2013Tax Increase: $20 Billion

Medical device manufacturers employ 409,000 people in 12,000 plants across the country. Obamacare imposes a new 2.3 percent excise tax on gross sales — even if the company does not earn a profit in a given year. In addition to killing small business jobs and impacting research and development budgets, this will increase the cost of your health care — making everything from pacemakers to prosthetics more expensive.

The ‘Obamacare’ ‘Special Needs Kids Tax’

Americans For Tax Reform Releases a List of the Top 5 Worst Taxes Obamacare Will Impose in 2013Tax Increase: $13 Billion

The 30-35 million American who use a Flexible Spending Account (FSA) at work to pay for their family’s basic medical needs will face a new government cap of $2,500 (currently the accounts are unlimited under federal law, though employers are allowed to set a cap).

There is one group of FSA owners for whom this new cap will be particularly cruel and onerous: parents of special needs children.  There are several million families with special needs children in the United States, and many of them use FSAs to pay for special needs education. Tuition rates at one leading school that teaches special needs children in Washington, D.C. (National Child Research Center) can easily exceed $14,000 per year. Under tax rules, FSA dollars can be used to pay for this type of special needs education. This Obamacare tax provision will limit the options available to these families.

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The ‘Obamacare’ Surtax on Investment Income

Americans For Tax Reform Releases a List of the Top 5 Worst Taxes Obamacare Will Impose in 2013Tax Increase: $123 Billion

This is a new, 3.8 percentage point surtax on investment income earned in households making at least $250,000 ($200,000 single).  This would result in the following top tax rates on investment income:

The table above also incorporates the scheduled hike in the capital gains rate from 15 to 20 percent, and the scheduled hike in dividends rate from 15 to 39.6 percent.

The ‘Obamacare’ ‘Haircut’ for Medical Itemized Deductions

Americans For Tax Reform Releases a List of the Top 5 Worst Taxes Obamacare Will Impose in 2013Tax Increase: $15.2 Billion

Currently, those Americans facing high medical expenses are allowed a deduction to the extent that those expenses exceed 7.5 percent of adjusted gross income (AGI).  This tax increase imposes a threshold of 10 percent of AGI. By limiting this deduction, Obamacare widens the net of taxable income for the sickest Americans.  This tax provision will most harm near retirees and those with modest incomes but high medical bills.

The ‘Obamacare’ Medicare Payroll Tax Hike

Americans For Tax Reform Releases a List of the Top 5 Worst Taxes Obamacare Will Impose in 2013Tax Increase: $86.8 Billion

The Medicare payroll tax is currently 2.9 percent on all wages and self-employment profits.  Under this tax hike, wages and profits exceeding $200,000 ($250,000 in the case of married couples) will face a 3.8 percent rate instead. This is a direct marginal income tax hike on small business owners, who are liable for self-employment tax in most cases. The table below compares current law vs. the Obamacare Medicare Payroll Tax Hike:

Is That Your 401k?

I recall speaking to some folks a few years ago about the possible confiscation of peoples retirement as the government runs out of money. I also recall, everyone I spoke with called me a crazy person. Well, here we are a few years later and looky, looky. They aren’t proposing full confiscation yet, but it’s a start.

Feds eye retirement-fund tax to cut $16 trillion-plus deficit

By GREGORY BRESIGER

Uncle Sam, in a desperate attempt to fix its $16 trillion-plus deficit, is leering over Americans’ retirement nest egg as its new bailout fund.

Capitol Hill politicians are assessing tax changes that could let the Internal Revenue Service lay claim to a portion of the $18 trillion sitting in 401(k) accounts and other tax breaks used by middle-class workers, including cutting the mortgage tax deduction.

A commission looking for ways to close the deficit, and, noting the extent of 401(k) tax breaks, recommends an examination of the system as one way to prevent government bankruptcy.

Besides 401(k)s, other possibilities include the mortgage-interest deduction on second homes, as well as benefits from employer-provided health insurance, which are untaxed now.

Under current 401(k) rules, total employee/employer contributions can’t exceed $50,000. In the proposed rule change, employer/employee contributions would be limited to 20 percent of the employee’s compensation, with a maximum of $20,000, the so-called 20/20 proposal.

Another proposal being discussed in Congress says all tax deductions on 401(k)s and IRAs to be replaced with an 18 percent credit. The credit, according to a proposal that has been endorsed by economist William Gale, would be placed directly in a person’s retirement account.

“Unlike the current system,” Gale told Congress, “workers’ and firms’ contributions to employer-based 401(k) accounts would no longer be excluded from income and would be subject to taxation, contributions to IRAs would no longer be tax-deductible and any contributions to a 401(k) plan would be treated as taxable income.”

In other words, the employee and employer would no longer get a deduction under the Gale plan, they would qualify for a credit. And the credit would “increase [government] revenues by about $458 billion,” Gale says.

Last week a group of retirement industry experts went to Capitol Hill to criticize these proposed changes in retirement-plan rules. “These changes could have unintended consequences,” warns Lynn Dudley of the American Benefits Council (ABC).

Testifying before the House Ways and Means Committee about the proposals, Randolf Hardock, of ABC’s board of directors, said, “[The idea] could seriously undermine the retirement savings system.”

Jack VanDerhei, research director of Employee Benefit Research Institute (EBRI), believes either of the two proposed 401(k) changes under review would have a “catastrophic” effect on the current retirement saving system.

The 20/20 plan provisions curtailing non-taxable contributions would freeze out many higher-paid employees from signing up for a 401(k), which could lead some companies, according to critics, to question if plans would still be worth offering employees.

Reducing retirement-plan contributions for those at the higher end of the wage scale will inevitably have a bad effect on those in the middle and at the bottom, ABC’s Dudley says.

Taxmageddon

From:

Mike Brownfield

Mike Brownfield at Heritage

Brace yourself. In a mere 271 days, you and your fellow Americans will be hit with a tax hike the likes of which this country has never seen. The Washington Post aptly called the unprecedented $494 billion tax hike “Taxmageddon”, and 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. In a new paper, Taxmageddon: Massive Tax Increase Coming in 2013, Heritage’s Curtis Dubay details the tax hikes that will occur if President Obama and Congress do not act before the end of the year:

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, increased the Child Tax Credit and the adoption credit, and increased tax breaks for education costs and dependent care costs.

Another 25 percent of Taxmageddon comes from the expiration of the once-temporary payroll tax cut. The expiration of the patch on the Alternative Minimum Tax (AMT) — which would raise the income threshold over which families qualify for the AMT to prevent middle-income families from paying this tax that is only supposed to impact “the rich” — accounts for 24 percent of the total potential 2013 tax increase.

The balance of the tax hikes comes in part from new taxes under Obamacare, the expiration of tax cuts in the 2009 stimulus, the expiration of a group of policies known as “tax extenders,” changes in the current policy on the death tax (in 2013, it will rise from 35 percent today to 55 percent and the exemption will fall from $5 million to $3.5 million), and the expiration of businesses’ ability to fully expense new capital investments.

This $494 billion in higher taxes will certainly hit families and business hard in 2013, but their effects are already being felt. Dubay explains that Americans must plan for tomorrow, and the tremendous uncertainty about tax policy makes the future much more uncertain, thus discouraging the investments and other actions needed to spur the economy to create jobs faster today.

So while the President and Congress appear content to put off ’til the 11th hour what they can and should do today, those who will have to pay the higher tax burden are waiting to see what the future holds. Dubay says that this is “slowing job creation and stopping many of the millions of unemployed Americans from going back to work.”

Early on in his presidency, Barack Obama said he knew about the impact of taxes. Back in 2009, on a visit to Elkhart, Indiana, Obama emphatically stated his belief that raising taxes in a recession is a bad idea. Though America is not in recession today, it still struggles with very high unemployment, and so the President’s logic applies with equal force — raising taxes is a drag on job creation. Unfortunately, in a speech in Washington on Tuesday, President Obama unabashedly revealed that preventing tax hikes is not his priority. In fact, he wants to see even more taxes imposed on the American people and on job creators all in the name of “fairness” — may of which are in his budget. That’s a political doctrine, not an economic policy, and it’s a proven recipe for economic disaster.

If the President doesn’t work with Congress to take action soon to prevent a 2013 Taxmageddon, his brand of “fairness” will result in the biggest tax increase in the nation’s history. And that storm will wreak even more damage on America’s already fragile economy. Congress shouldn’t wait for Obama to take the lead in preventing a policy nightmare he might actually favor. Instead, it should act now to prevent these tax hikes from crushing America’s families and our economy.