American Elephants

Re-elect Me And I’ll Raise Your Taxes – Massively! by The Elephant's Child

How dare Republicans not agree to break their campaign promises and raise taxes when the jobless rate is 9.2% and President Obama’s economic recovery is in jeopardy?

So said the Wall Street Journal yesterday. Nobody seems to have noticed that Mr. Obama has already signed the largest tax increase since 1993.  While everyone has focused on the Bush tax rates that expire  after 2012, there are already new tax increases scheduled to hit the economy due to the 2010 Affordable Care Act.

  • Starting in 2013 the bill adds an additional 0,9% increase to the Medicare tax for singles who earn more than $200,000 and couples making more than $250,000.
  • Medicare’s 2.9% payroll tax rate is added to all investment income — dividends, capital gains and interest. ($210 billion).  Alternative Minimum Tax as well.
  • A2.3% excise tax on medical device manufacturers and importers ($20 billion)
  • Annual fee on ‘branded’ drug makers ($27 billion)
  • Cuts in allowable medical deductions from 7.5% of income to 10%
  • 40% excise tax om high-cost health insurance plans.
  • A new annual fee on health insurance providers starting in 2014.

Business doesn’t pay these taxes.  They pass them on to you in higher costs.  Many think this was Obama’s tax-and-spend plan from the beginning.  Mr. Obama is pushing to reduce the payroll tax by two percentage points for another year to boost the economy.  So if that creates jobs this year, what does raising the tax in 2013 do? And how many jobs does that kill?

And now President Obama is suggesting that if he doesn’t get his way — the old folk’s Social Security checks just might not go out in August — he can’t guarantee that they will.  When all else fails, scare the old folks! Maybe they will rise up and attack the Republicans and make them give Obama all the money he wants to spend on — oh yes, infrastructure again.


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