With nearly 10% nationwide unemployment it’s hard to distinguish where the downturn ends from where the sluggish recovery begins, but I think most Americans believe the worst is over. We weathered the storm. In spite of supreme mismanagement by this administration, earmarked with bogus bailouts, a failed stimulus package, a healthcare plan most Americans oppose, and a litany of other big-government bonanzas, the American economy has proved its resiliency. But before you think we’re back on our feet, be warned: there’s a tax tsunami on the horizon.
The eagerly-awaited midterm elections are approaching, and common sense faithful are prepared to begin the mandate against the Obama-Pelosi agenda. But even if voters are successful in cleaning house and removing the tax-and-spend liberals who’ve driven our economy into a ditch, there’s more trouble that awaits us, courtesy of the Obama administration. The financial markets hate uncertainty, and the ‘Mother of All Uncertainties’ is looming in December, when Congress will decide what will happen to the Bush tax cuts, which are set to expire at midnight on Dec. 31. And with it, a torrent of job killing taxes posed to cripple any chances of an economic recovery begins in 2011. Among them, the death tax–a 55% bombshell levied on estates of $1 million or more. But that’s just the tip of the iceberg. According to
Investors Business Daily:
“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%.”
“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.”
“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.”
Regardless of class-warfare rhetoric aimed at the “wealthiest 1%” of Americans, taxes will skyrocket for all of us, in part to pay for vastly unpopular legislation Obama has passed on a purely partisan basis. More food for thought as we approach November.
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