The Largest Tax Hike Since 1993

Discussion in 'Politics' started by Wiseacre, Aug 5, 2011.

  1. Wiseacre
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    Wiseacre Retired USAF Chief Supporting Member

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    This is from the WSJ, about a month back. Apologies if somebody already posted this information. Tax and spend, sometimes out in the open and sometimes not. I didn't know about some of this myself.


    Keep in mind that Mr. Obama has already signed the largest tax increase since 1993. While everyone focuses on the Bush tax rates that expire after 2012, other tax increases are already set to hit the economy thanks to the 2010 Affordable Care Act. As a refresher, here's a non-exhaustive list of ObamaCare's tax increases:

    • Starting in 2013, the bill adds an additional 0.9% to the 2.9% Medicare tax for singles who earn more than $200,000 and couples making more than $250,000.

    • For first time, the bill also applies Medicare's 2.9% payroll tax rate to investment income, including dividends, interest income and capital gains. Added to the 0.9% payroll surcharge, that means a 3.8-percentage point tax hike on "the rich." Oh, and these new taxes aren't indexed for inflation, so many middle-class families will soon be considered rich and pay the surcharge as their incomes rise past $250,000 due to tax-bracket creep. Remember how the Alternative Minimum Tax was supposed to apply only to a handful of millionaires?

    Taxpayer cost over 10 years: $210 billion.

    • Also starting in 2013 is a 2.3% excise tax on medical device manufacturers and importers. That's estimated to raise $20 billion.

    • Already underway this year is the new annual fee on "branded" drug makers and importers, which will raise $27 billion.

    • Another $15.2 billion will come from raising the floor on allowable medical deductions to 10% of adjusted gross income from 7.5%.

    • Starting in 2018, the bill imposes a whopping 40% "excise tax" on high-cost health insurance plans. Though it only applies to two years in the 2010-2019 window of ObamaCare's original budget score, this tax would still raise $32 billion—and much more in future years.

    • And don't forget a new annual fee on health insurance providers starting in 2014 and estimated to raise $60 billion. This tax, like many others on this list, will be passed along to consumers in higher health-care costs.

    There are numerous other new taxes in the bill, all adding up to some $438 billion in new revenue over 10 years. But even that is understated because by 2019 the annual revenue increase is nearly $90 billion, or $900 billion in the 10 years after that. Yet Mr. Obama wants to add another $1 trillion in new taxes on top of this.

    The economic ironies are also, well, rich. Mr. Obama is now pushing to reduce the payroll tax by two-percentage points for another year to boost the economy, but he's already built in a big increase in that same payroll tax for 2013. So if a payroll tax cut creates jobs this year, why doesn't a payroll tax increase destroy jobs after 2013?
     
    Last edited: Aug 5, 2011
  2. midcan5
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    midcan5 liberal / progressive

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    Reagan and Clinton raised taxes, Reagan many times.

    "There is no historical evidence that tax cuts spur economic growth. The highest period of growth in U.S. history (1933-1973) also saw its highest tax rates on the rich: 70 to 91 percent. During this period, the general tax rate climbed as well, but it reached a plateau in 1969, and growth slowed down five years later. Almost all rich nations have higher general taxes than the U.S., and they are growing faster as well." Tax cuts spur economic growth

    "But the record shows just the opposite. The national rate of job growth during George W. Bush’s tenure was the worst since the government starting counting in 1939....The tax changes didn’t do much for Vermont, either. Job growth so far this decade is worse than any decade since the 1940s. We have fewer jobs today than we had in 2000." Hoffman: Did tax cuts create jobs?

    "I’m fully aware that I risk excommunication from the Church of Economic Science when I argue exactly the opposite: Tax cuts actually hurt the economy. It isn’t just that they don’t help, or that they’re ineffective—THEY REALLY HURT!" Spending Cuts Vs. Tax Increases at the State Level, 10/30/01

    "In terms of promoting economic growth, the Bush tax cuts have been a miserable failure.
    Under George W. Bush, U.S. GDP growth averaged 2.1 percent a year. Since the end of World War II, the country has never experienced such low economic growth during an eight-year period. And if you exclude the war demobilization of 1946, when U.S. government spending fell by two-thirds and GDP fell by 10.9 percent, Bush had the worst economic record since Herbert Hoover." The Bush Tax Cuts: Failure Analysis by David Fiderer ? Failure magazine |


    "Baker predicts a recession this year because of the housing bubble. Lets see how accurate he is. I'm betting on Baker. Don't bank on the Wall Street guys, they seem more interested in protecting their clients than getting you truth." from amaz review 2007

    And the stats to prove it: [ame=http://www.amazon.com/United-States-since-World-Since/dp/0521677556/]Amazon.com: The United States since 1980 (The World Since 1980) (9780521677554): Dean Baker: Books[/ame]
     
  3. Wiseacre
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    Wiseacre Retired USAF Chief Supporting Member

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    Maybe you should start your own thread about tax cuts, this thread is talking about tax hikes. Specifically about the Obama tax hikes that he and the Dems put into the ACA bill.
     
  4. Grampa Murked U
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    Grampa Murked U Diamond Member

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    Yep, nearly 800 billion in NEW TAXES. Possibly more to come as the bill is tweeked.
     
  5. ShackledNation
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    ShackledNation Libertarian

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    Uhh...no? The 30s was something called the "Great Depression."
     
  6. Grampa Murked U
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    Grampa Murked U Diamond Member

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    I see the left is avoiding this thread like the plague.

    Not surprised
     
  7. Soggy in NOLA
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    Soggy in NOLA Platinum Member

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    :lol::lol::lol:
     

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