Cheer Up Folks-Next Year’s Tax Day Will Be Much Worse
(video H/T Hot Air)
Even in the best of times Tax Day stinks, but this Tax day is worse than most. The economy remains in the pits, spending has skyrocketed, taxes have gone up, and it seems as if with each passing day the American voter’s voice in how those tax dollars are being spent, diminishes. That’s the good news, the bad news is that next year’s tax burden will be worse.
“I can make a firm pledge, under my plan, no family making less than $250,000 a year will see any form of tax increase. Not your income tax, not your payroll tax, not your capital gains taxes, not any of your taxes.”- President Barack Obama, September 12, 2008
As recently as this past Saturday’s radio address President Obama assured us that he was sticking to the $250,000 pledge. This is nothing but a blatant lie by the president. Below are just a few of the ways your tax burden will be much heavier before tax day 2011:
- $5 billion Over the Counter Drugs: Americans no longer able to use health savings account (HSA), flexible spending account (FSA), or health reimbursement (HRA) pre-tax dollars to purchase non-prescription, over-the-counter medicines (except insulin)
- $1.4 billion HSA Withdrawal Tax Hike Increases penalties tax on non-medical early withdrawals from an HSA from 10 to 20 percent.
- 2.7 billion Pasty White Guy Tax: New 10 percent excise tax on Americans using indoor tanning salons
- 4.5 billion Because We Said So Tax: Codification of the “economic substance doctrine” it allows the IRS to disallow completely-legal tax deductions and other legal tax-minimizing plans just because the IRS deems that the action lacks “substance” and is merely intended to reduce taxes owed. The question is, what OTHER reasons are their for taking deduction.
These are only some of the taxes for next year that have been passed, according to the House GOP conference, there are more taxes the President has proposed as part of his 2011 budget, many of them are also directed to the less than $250,000 set:
- $968 billion tax increase on upper-income families and small businesses:
- $364 billion from expanding the top two income tax brackets and reinstating the 36 percent and 39.6 percent rates.
- $105 billion from increasing the tax rate on capital gains and dividends from 15 percent to 20 percent.
- $208 billion by reinstating the personal exemption and limitation on itemized deductions.
- $291 billion by limiting the itemized tax deduction to 28 percent of value.
- $49 billion tax by reducing the “tax gap,” the difference between taxes owed and taxes paid.
- $122 billion in higher taxes related to changes in the U.S international tax rules and enforcement.
- $90 billion in tax increases imposed on financial institutions, referred to as a “financial crisis responsibility fee,” which will be passed onto consumers.
- $59 billion in tax increases associated with the repeal of “last-in, first-out” inventory accounting practices, which assumes that an entity sells, uses or disposes of its newest inventory first.
- $40 billion in tax increases related to the repeal of tax credits for the production of natural gas, oil, and coal fuels (passed to consumers)
- $24 billion in increased taxes on carried interest, levied on investment partnerships by treating carried interest as normal income, more than doubling the tax rate from 15 percent to 39.6 percent.
These figures do not include the expiration of the “Bush Tax Cuts,” possible energy cost increases resulting from cap and trade, and the rumored imposition of a VAT tax. The value-added tax is a type of national sales tax, imposed on the valued-added at each stage of production that applies to countless products and services. With small incremental taxes at each phase of production. A VAT tax would increase the costs of every day household and small business items and services, which would significantly impact low to middle income Americans.
Today is tax day and millions of American’s will file their income taxes, maybe we should all be very happy, after all, its not next year.
If you want to read more from Jeff Dunetz go to his Blog The Lid