Monday, September 24, 2018

No More Taxes. Stop

by JJFCPA (editor), McLean, Virginia, May 10, 2010

Credit: Google Images
President Obamas Hope Poster

What has happened to then Senator Obama’s campaign pledge that middle income Americans, those earning less than $250,000 annually would not pay 1 dime more of taxes?

With Democrats in control of both houses of Congress and Obama now the president, all Americans including the middle class are facing the prospect of new taxes types and increased tax liabilities from rate increases and the phase out of beneficial tax provisions. These changes include both direct taxes like income and excise taxes. Consider what has happened already in 2010.

A new tax on individuals who do not purchase government-approved health insurance

A new tax on employers who fail to buy government approved health insurance

A 40% tax on high cost health plans, but with an exemption for union members

A .9% increase in Medicare tax on wages and self-employment income

A new 3.8% surtax on certain investment income

An increase from 7.5% to 10% of income the threshold for deducting medical expenses

A new $2,500 annual cap on Flexible Spending Account contributions

An excise taxes on brand name pharmaceuticals

An excise taxes on medical devices including wheelchairs

A 10% federal tax on indoor UV tanning services

A new tax on insured and self?insured health plans

A doubling of the penalty for non?qualified HSA distributions

Most Americans will be subject to the impact of more than 1 of these new tax provisions. However, the problem for Americans does not stop here. There are the prospects for further tax hardship unless Congress takes action. Consider:

Additional Possible tax Changes in 2010 include:
The Alternative Minimum Tax (AMT) will decrease from $46,700 to $33,750 for single filers and from $70,950 to $45,000 for married couples filing jointly.
Taxpayers will not be allowed to deduct their state and local general sales taxes from their federal income tax.
Businesses will not be able to claim a tax credit for research, experimentation, and development activities.
Taxpayers will not be able to claim a deduction for qualified tuition and expenses.
School teachers will no longer be able to write off books, supplies and other equipment
Five year depreciation of farm machinery and equipment will expire.
Donations of books to public schools (K-12) will no longer be eligible for an enhanced charitable deduction.

In 2011 pursuant to present law the following will occur:
The 35% income tax bracket will increase to 39.6%.
33% bracket will increase to 36%.
28% bracket will increase to 31%.
25% bracket will increase to 28%.
10% and 15% brackets will condense to 15%.
The child tax credit will decrease from $1,000 to $500.
The marriage penalty tax will be restored, charging married couples a higher tax rate than individuals on the same total income.
The “death” tax returns with a 55% maximum rate and a $1 million exemption, after years of decreasing “death” tax rates.
The dependent care tax credit will decrease from $3,000 to $2,400.
The energy efficient home appliance tax credit will expire.
The tax credit to hire unemployed veterans and disconnected youth will expire.
The Work Opportunity Tax Credit, which allows employers to credit up to 40% of the first-year wages of a new employee, will expire.
The $400 “Making Work Pay” Tax Credit will expire.

With record breaking deficits and looming unfunded entitlement programs liabilities moving closer, the prospects for Congress to chnage the tax path we are on is unlikely. In an era of 1 party control, Americans now see what havoc can be wrecked on their balance sheets. And Obama is just another on a long list of elected officials who broke very specific campaign pledges. Expect more to come.

This November I believe that we will witness a backlash across both parties against incumbents. The prediction that the Democrats will suffer the greatest loss in both houses is warranted. It is under their leadership and control that this is all happening.

About the Writer

JJFCPA is an editor for BrooWaha. For more information, visit the writer's website.
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5 comments on No More Taxes. Stop

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By alan handwerger on May 10, 2010 at 09:39 am

Cheerful way to start the week.

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By D. E. Carson on May 10, 2010 at 11:36 pm

Nice work JJ...

You've hit the nail right on the head. 0bama promised to make things easier on people, yet he's bending all of us over the railing. It's also amazing to me how 0bama-the-liar can look at the expiration of the Bush tax cuts and still not call them a tax increase. Someone making $50,000 and paying 15% is paying $7,500 in taxes. When his tax rate is cut to 10% he is only paying $5,000 in taxes. When that tax cut expires he goes back to paying $7,500. That's called a tax increase. There is absolutely no other definition for it. Taxes went down from $7,500 to $5,000 and back up to $7,500. It's a tax increase.

But the liberal god 0bama has decreed that it is not a tax increase so his minions repeat the lie in the hopes that if it is repeated enough, it becomes the truth.

So sad that so many are so stupid.

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By JJFCPA on May 11, 2010 at 06:07 am

I am color blind. You are wrong. I am sharing some tax related facts and some probabilities based on existing law.

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By Jack on May 12, 2010 at 12:47 pm

I'd just like to point out that you can't cut taxes for people who don't pay them. Saying that you cut taxes for 95% of people when only ~50% of people pay taxes doesn't make sense. Basically a bunch of people received a welfare check from the federal government.

Also I was pretty pissed off that after Obama promised my taxes wouldn't go up one dime, 3 months in he put an extra 60 cent tax on my cigarettes. That turned out to be 6 dimes a day for me.

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By Jack on May 12, 2010 at 06:53 pm

Your right, I misspoke. 47% of Americans don't pay federal income tax. Still though, Obama was referring to income tax when he said that he would cut taxes. The taxes that get charged to you when you buy fast food and consumer goods are mostly state sales taxes.

At the end of the day I guess its a semantics argument. It would be like me telling you that I will cut your rent by $200 per month by giving you $200 per month. Its not really cutting your rent, your rent is still the same amount, I'm just giving you money to offset it.

As for your argument for taxing smokers. You are making the assumption that smokers actually cost the system more then non smokers. This is not actually the case. Here is an article about a dutch study which showed that thin healthy people actually cost the system more then obese people and smokers. The reason is that once obese people, and smokers die right around retirement age, while the thin healthy people live an extra 10-20 years. And those 10-20 years are very expensive, especially if they aren't paying into the system.

By your logic the government should be subsidizing cigarettes and fast food to reduce health costs. :-P

Of course its not really about offsetting costs its about improving peoples quality of lives by modifying their behavior through taxes. While in principle I whole heartedly disagree with this, there are definitely much worse motivations then that in Washington.

What really pisses me off about cigarette taxes is where the money goes. Currently it costs 50 bucks for a box of nicotine gum. If they were to tax cigarettes and subsidize the cost of smoking cessation products, so they cost 10 dollars, or used the money collected specifically to pay for the medical care of smokers, then I would feel a lot better about it. But that never happens. In this case the money is going to pay for children's health insurance. A nice thing to do, but I don't see why only smokers should have to pay for it.

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