Many people hope that if Republicans can take back at least one house come November, that some degree of sanity can be restored and our fiscal house can be put in order. But perhaps it will already be too late.
In addition to the health-care bill, which will be nearly impossible to repeal before 2012 or even then, there is the looming humongous tax increase coming our way before the new congress can even be sworn in. IBD tallies:
But as of midnight Dec. 31, the death tax returns — at a rate of 55% on estates of $1 million or more. The effect this will have on hospital life-support systems is already a matter of conjecture.
Resurrection of the death tax, however, isn’t the only tax problem that will be ushered in Jan. 1. Many other cuts from the Bush administration are set to disappear and a new set of taxes will materialize. And it’s not just the rich who will pay.
The lowest bracket for the personal income tax, for instance, moves up 50% — to 15% from 10%. The next lowest bracket — 25% — will rise to 28%, and the old 28% bracket will be 31%. At the higher end, the 33% bracket is pushed to 36% and the 35% bracket becomes 39.6%.
But the damage doesn’t stop there.
The marriage penalty also makes a comeback, and the capital gains tax will jump 33% — to 20% from 15%. The tax on dividends will go all the way from 15% to 39.6% — a 164% increase.
Both the cap-gains and dividend taxes will go up further in 2013 as the health care reform adds a 3.8% Medicare levy for individuals making more than $200,000 a year and joint filers making more than $250,000. Other tax hikes include: halving the child tax credit to $500 from $1,000 and fixing the standard deduction for couples at the same level as it is for single filers.
Letting the Bush cuts expire will cost taxpayers $115 billion next year alone, according to the Congressional Budget Office, and $2.6 trillion through 2020.
But even more tax headaches lie ahead…
The Article then details the various tax hikes that come later on with health-care.
As long as Obama is President, restoring the Bush tax cuts and repealing all the health-care tax hikes will be virtually impossible even if we took back both houses in November. By inauguration day 2013, there might not be an economy left to save.
This is what turns recessions into depressions.
Stock up on canned goods, ammo, and beef jerky while you can still afford it.
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