Friday, July 23, 2010

The Obama Tax Increases Coming 1/1/11

If President Obama and the Socialists that control Congress allow the Bush Tax Cuts to expire on December 31, 2010, as will occur if they don't take action soon, it will be the biggest tax increase in American history. As of 1/1/11, the following will take place. Those who are in the 10% federal income tax bracket will see their tax rate rise to 15%, which is a 50% increase. Those in the 25% tax bracket will see their tax rate rise to 28%. Those in the 28% bracket will see an increase to the 31% bracket, while the 33% bracket grows to 36%. Those in the current federal income tax top bracket of 35% will jump to 39.6%.

And, while some might favor sticking it to the "rich", all should know that the top brackets very often impact small businesses that are sub charter S corporations that pay regular federal income tax rates, rather than corporate federal income tax rates, which currently top out at 35%; so this tax increase will be a real job killer as small businesses lay off employees to pay their income taxes. Keep in mind, these federal income tax rates do not include state income tax rates that across the country average 6% or more; nor any of the other taxes we all pay. When you add it all up, the 50% of the people in the United States who pay all the income taxes in our country will be paying 50% or more of their income in federal, state and local taxes. Why work? This is the reason businesses are not hiring people. Where is the upside in taking risks and or borrowing to grow a business? There is none.

But that is not all. If the Bush Tax Cuts are allowed to expire, Capital Gains tax will rise from 15% to 20%. The tax on Dividends will grow from today's 15% to as much as 39.6%, which will destroy the stock market. The Death Tax goes from 0% this year back up to the old 55% confiscation level. Further, there are tax increases in Obama's HealthScare Plan that will hit in the next few years that will make matters even worse. Clearly, Obama and the Socialists that control Congress support redistribution of income from the 50% of the people who pay income taxes to their PEEP's, the 50% of the people who pay no income taxes at all.

The problem is that if the Bush Tax Cuts are allowed to expire, the United States will experience a double dip Recession, or maybe even a Depression. We will see unemployment go up, or at least not go down. This tax increase, if allowed to happen will confiscate Trillions of dollars from the American people in the next 10 years and transfer it to the Socialists in Congress to mismanage and waste on new entitlement programs and pork barrel spending. These Socialists will use these monies to make even more people dependent on the government as a means of buying their votes and staying in power. This is a sick, diabolical Socialist scheme.

The fact is that government is the problem not the solution. We cannot allow these tax increases to occur. Instead, we need to starve the beast to prevent the growth of government, a weak economy, job losses and a lower standard of living for the American people, which all is sure to occur if the Bush Tax Cuts are allowed to expire. Unfortunately, Obama and the Socialists that control Congress do not understand Economics 101. Raising taxes in a weak economy and deficit spending is what Franklin Roosevelt did in the 30's and it caused the Depression to last for 15 years until it was finally ended by World War II. The same thing will happen now if Obama pushes through these tax increases. It is economic suicide.

We just can't let that happen. We must elect Conservatives in 2010 and 2012 who support free market capitalism, limited government, lower taxes and less regulation, a balanced budget, term limits, a strong national defense including securing our border and fighting Terrorism, real energy independence and health care reform, the right to bear arms, the sanctity of life and family values. This is the winning platform in 2010 and 2012 and the only way to grow our economy again.

Most important, we must elect Conservatives in 2010 and 2012 who support the Constitution, as written by our Founding Fathers, not as contrived by the left wing media, Socialist Obama, Reid, Pelosi, former Presidents, Congresses, or the Courts. We must take back our country in 2010 and 2012 and sweep these Socialists out of office to stop these tax increases that will devastate our economy. We can do it. We must do it to preserve our freedoms and for the sake of our children and grandchildren.

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