ON JANUARY 1, 2013, JUST 56 DAYS after the November 6
presidential election, a series of temporary tax cuts will lapse,
and rates will automatically and immediately “snap back” to where
they once were, in some cases more than a decade ago. These
increases will add $500 billion to the nation’s tax burden in 2013,
and, over the next decade, will take $5 trillion out of the economy
and ship it to Washington.
At the same time, several of the new taxes passed to pay for Obamacare will conveniently begin to bite. Someone, for some reason, believed it wise to delay those taxes’ implementation until someone was safely re-elected. Of the 20 new taxes or tax hikes in Obamacare, four will take effect January 1, including a 3.8 percent surtax on investment income (on top of existing capital gains and dividend taxes) and a 2.3 percent excise tax on medical devices, such as wheelchairs, pacemakers, and children’s braces. (If the Supreme Court strikes down Obamacare in its entirety, this would pare back the tax hit by $23 billion in 2013 alone.)
THE UNSETTLING LEGISLATION includes a litany of lower tax rates and higher credits that were enacted in separate packages.
The 2001 “Bush” tax cuts reduced marginal tax brackets from 15, 28, 31, 36, and 39.6 percent to 10, 25, 28, 33, and 35 percent; they also doubled the per-child tax credit from $500 to $1,000.
Not only are the old rates set to return, but a family’s taxes will go up $500 for every child it has under 18.
Read more: http://spectator.org/archives/2012/07/18/waiting-for-taxmageddon
At the same time, several of the new taxes passed to pay for Obamacare will conveniently begin to bite. Someone, for some reason, believed it wise to delay those taxes’ implementation until someone was safely re-elected. Of the 20 new taxes or tax hikes in Obamacare, four will take effect January 1, including a 3.8 percent surtax on investment income (on top of existing capital gains and dividend taxes) and a 2.3 percent excise tax on medical devices, such as wheelchairs, pacemakers, and children’s braces. (If the Supreme Court strikes down Obamacare in its entirety, this would pare back the tax hit by $23 billion in 2013 alone.)
THE UNSETTLING LEGISLATION includes a litany of lower tax rates and higher credits that were enacted in separate packages.
The 2001 “Bush” tax cuts reduced marginal tax brackets from 15, 28, 31, 36, and 39.6 percent to 10, 25, 28, 33, and 35 percent; they also doubled the per-child tax credit from $500 to $1,000.
Not only are the old rates set to return, but a family’s taxes will go up $500 for every child it has under 18.
Read more: http://spectator.org/archives/2012/07/18/waiting-for-taxmageddon
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