Note: This article was originally posted at A Conservative Teacher on 8-1-10.
Yesterday, in The Coming Tax Assault I: 2011 Destroyed by Tax Increases on Everyone I wrote:
2011, regardless of what happens in the 2010 elections, will be a bad year for America due to the avalanche of tax increases that will hit everyone, specifically dead people, married people, rich people, investors, poor people, those with kids, those who save, those who buy medications, and small businesses. New tax increases of varying amounts will be levied on these groups starting in 2011, and the result of these tax increases will be lower spending, lower saving, lower investment, lower business activity, and increasing hiding of taxable income by those that can, with the end result being falling revenues to the government and less economic activity. That will mean less jobs, less income, and a lower quality of life for you. The blame for this can be laid 100% on politicians, namely anyone who voted for Obamacare and anyone who refused to vote to make permanent the 2001 tax cuts, both of whom are almost all Democrats and who are all liberals.
My post yesterday focused on what is going to happen when the death tax comes back and when the 2001 tax cutes expire. Today I will focus on all the other tax increases that Democrats in Congress and under President Obama have implemented to take more of your wealth from you.
Via Investors Business Daily, the “second wave” of hikes, as Americans for Tax Reform puts it, are designed to pay for ObamaCare and include:
- The ‘Medicine Cabinet’ Tax, which includes reducing the amount that Americans are able to put in their personal health savings accounts or flexible spending accounts and a tax on health reimbursement pretax dollars used to purchase nonprescription, over-the-counter medicines (except insulin).
- The ‘HSA Withdrawal’ Tax. This increases the additional tax on nonmedical early withdrawals from an HSA from 10% to 20%.
- ‘Brand Name Drug’ Tax. Makers and importers of brand-name drugs will be liable for a tax of $2.5 billion in 2011. The tax goes to $3 billion a year from 2012 to 2016, then $3.5 billion in 2017 and $4.2 billion in 2018.
- ‘Economic Substance Doctrine’ Tax. The IRS is now empowered to disallow perfectly legal tax deductions and maneuvers merely because it judges that the deduction or action lacks ‘economic substance.’
- ‘Medicare Tax’. A new 3.8% Medicare tax begins in 2013.
- Finally, there is the tax (Obama said it wasn’t a tax but now in court he says it is a tax) on Americans who decline to buy health care insurance.
These taxes are directly responsible to anyone who voted for Obamacare, which takes property from hard-working Americans in the form of higher taxes in order to provide government-healthcare to others- and I want to remind you that government-healthcare has death panels in it and funds abortions.
There are other taxes, so many to even discuss, as a result of a disastrous several years of Democratic control of the Congress and Presidency, that include alternative minimum tax’s widening net, tax hikes on employers, the loss of deductions for tuition, the deletion of dozens of tax brakes, teachers won’t be able to deduct their classroom expenses, employer-provided educational aid will be restricted, and thousands of families will no longer be allowed to deduct student loan interest.
These tax increases are all going to start to kick in over the next several years and all will grow in size as time goes on. These tax increases will hammer the US economy, sucking the life out of it by stealing property from those who earn it and giving it to those who are politically connected in society. Tyranny will increase as a mobster-like government redistributes wealth to chosen favorites, and the best and brightest realize that they would be better off ingratiating themselves to a mob-government than building new products or offering new services. The incentive to work and work hard will be less because if you do you’ll be punished and if you don’t you’ll be rewarded. Our society will grow less wealthy, less moral, and less successful.
And it will all be because you or your friends or your family voted Democrat somewhere on the ticket somewhere in the recent past. The only hope, and it is a faint one, is that large conservative Republican majorities at every level of government will mitigate and lessen the damage of all of these taxes.
Original Post: A Conservative Teacher
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Matt
I believe that future generations should have the same opportunities that myself, and those that came before me, had. My parents taught me that I could do anything I wanted to do. I don’t want to have to tell my daughter, “You can do whatever the government tells you to do.” We are at a crossroads in this country; are we going to be free, or are we going to be slaves to the nanny state. I choose freedom.
Americans are going to be in for a rude awakening once all of these tax increases begin to hit them. Remember the day after the he signed the healthcare bill when he chided those that opposed it by saying that the sun was still shining? We knew that the effects of this bill weren’t going to be felt right away and starting next year we are all going to feel the pain.
This a troubling post, indeed. I know for a fact that my employer is very concerned about his taxes, due to what his accountant has been telling him. Most of it has to do with the tax breaks that are about to expire, if I am not mistaken. He has already told us that he may have to lay off at least two employees to compensate for his increasing costs. How the Democrats and the current administration can say this is a good thing is beyond my comprehension.
Yup… we’ll be lucky to look like France in a few years.
“The incentive to work and work hard will be less because if you do you’ll be punished and if you don’t you’ll be rewarded.”
The socialist dream. Bastards.
@ A Conservative Teacher:
“The only hope, and it is a faint one, is that large conservative Republican majorities at every level of government will mitigate and lessen the damage of all of these taxes.”
This is definitely my hope (and my prayer). I see a shining light in the TEA Party ideals. No matter what happens to the TEA Party movement, each of us can the idea of a constitutional government first and foremost in our thinking. We haven’t done that for more years than I can remember. This will make the difference if we can keep the mantra of constitutionalism in view of all we do.
Excellent article, and it is truly a gruesome look into our future. There is nothing American about this administration’s policies.
Since the Civil War the Federal Government has puffed out its chest, stood on the empire state building and pounded its chest proclaiming for all to hear that they are the “DECIDERS” and the states are simply enablers.
Abraham Lincoln led this nation down a federalist path of which there has been no turning back.
Today we are a welfare nation. A socialist nation with but Capitalism as the means of funding our addiction to the Federal appetite.
It seems however with the new brand of socialist in the halls of congress that even this must go. Must be destroyed for the greater good.
And when it goes..?
There will be no hand left to feed the needy. Its all so plain….so simple and yet, the “gimme, gimme” crowd cannot see past tomorrow. They do not realize that the government gets their money from Business and corporations and not from individuals.
Because without a strong capitalist system to EXPLOIT…..there is no money in the pockets of workers to TAX.
I do not think the right advocates ending social programs. We are simply demanding that our programs be funded by a strong, healthy and fiscally sane government and not an out of control socialist/progressive Hydra of tax and grab enablers.