By Jack Kneafsey
While I have not as yet read the entire Senate bill, there are some initial conclusions that can be made.
It seems that, if you are either self-employed or an employee, you are a LOSER!
It seems that, if you are unemployed or a recipient of government benefits (not Soc. Sec or Medicare), then you are a WINNER!
I know that all this seems backwards, but this is the current state of our nation, given President Obama’s mission of redistribution. He continues to take from those who are higher earning and more successful, in order to bestow benefits on those, who are not earners. He even mentioned in his pre-celebration speech to the nation on Monday that, from his perspective, there will NOT be any spending cuts in the near future, and any deficit reduction efforts will be funded by increased taxes on the “rich” Of course, we already know that Obama is NOT INTERESTED in ANY spending cuts, only more government spending.
If you wonder why you are a LOSER, if you are self-employed or an employee, look no further than the 2% payroll tax increase being added back, as of yesterday. This affects all non-government workers, and the immediate effect of this is rather dramatic. For example, for workers earning $50,000 per year, they will now pay an extra $1,000 to the government each year. For an individual earning the maximum 2013 cap of $113,700 or more, the increase would be $2,274, or nearly $200 per month. Funny, this wasn’t mentioned much during the recent election campaign.
Also, if you are one of the fortunate people making over $400,000 ($450,000 for couples), your tax rate just increased from 35% to 39.6%, plus you are about to lose the benefits of any exemptions, and certain limitations on the amount of your “acceptable” deductions.
If you are a well-heeled investor, you are also a significant LOSER, in that your capital gains tax rate and your dividend tax rate just increased from 15% to 20%. Plus, thanks to the new Obamacare tax on investments for those earning over $200,000 ($250,000) for couples, you are also going to be taxed an extra 3.8% on your investment earnings. So, if you are in that fortunate category, your capital gains and dividend tax rates just increased by 58% to 23.8% overnight. Meanwhile, if your earnings are lower than this threshold, your capital gains tax rate stays at a maximum of 15%.
Yes, the AMT tax was finally removed, and indexed for inflation, but, in reality you would have probably seen another AMT patch, so as not to affect that many tax filers.
As for being a WINNER, if you are currently and unfortunately unemployed, your long-term unemployment benefits have been extended for one year. Plus, there are a large number of special credits being extended. Among them are the Child Tax Credit, the Earned Income Tax Credit, the Obama Opportunity Tax Credit, which basically is a college tuition tax credit, among others.
The reality of all of this is that, while these tax increases partially satisfy President Obama’s unsatiated thirst for more revenue, they do very little for reducing our debt situation or our annual deficit. Obama and the liberal democrats continue to ignore the real cause of our fiscal problems, which is uncontrolled, runaway government spending caused by the rapid growth in entitlement spending. At the moment, it is easy to conclude that Obama is not concerned about these issues, only fulfilling his campaign promises to “take” from the “rich”.Print This Post Send To A Friend