Why can't I just eat my waffle?
Barak Obama, after being asked a foreign policy question by a reporter while visiting a diner in Pennsylvania
Illinois Failures Go Nationwide
Phyllis Schlafly
Starting Jan. 1, 28 million middle Americans will be socked with a massive Alternative Minimum Tax (AMT), which Republicans had suspended. That's a "gotcha" that penalizes taxpayers in ways they never expect, adding big tax penalties based on an "alternative" way of calculating taxes due.
Upper-income Americans will see a big jump in their marginal tax rates. Their accountants are already telling them that the more they work, the less additional money they will take home, so they may be already slowing down, canceling investments or retiring to draw Social Security.
Hardworking parents who are saving for their children's future will be hit by the reinstatement of the massive "death tax" on Jan. 1. They may wonder why they work hard and save if their money will go to Uncle Sam and to people who choose not to work.
Marriage penalties will hit couples hard, both in the income tax law and in ObamaCare. Obama's financial favoritism toward unmarried women, his second biggest voting bloc, has become common knowledge.
Those who choose to control their own health care through Health Savings Accounts will be slapped with new taxes. That's just one more way to promote Obama's goal of moving all health care to government control.
Employers are not hiring because they know they will soon be paying not only higher taxes but also more health care costs or penalties. Depreciation allowances for investment in equipment will be lowered from $250,000 to $25,000, which means businesses will do less investing.
Our ability to compete in the marketplace, of course, depends on our advanced research and development. New taxes will hit R&D hard, which means more slowdowns and more outsourcing overseas.
The expiration of the GOP tax cuts will impose the largest tax hikes in history, affecting all taxpayers. The nearly 50% who pay no taxes will also be hurt by more loss of jobs.
You will not see any of your taxes increase one single dime.
Barack Obama
Posts
"Upper-income Americans will see a big jump in their marginal tax rates. Their accountants are already telling them that the more they work, the less additional money they will take home, so they may be already slowing down, canceling investments or retiring to draw Social Security."
ReplyDelete... Ah, HA! This is a JOBS bill! Get some of the top to retire and open up positions for everyone to move up... then hire to backfill near the bottom. Don't coporations do this all the time??
"Death Tax" - why would parents with young children be worried about the death tax?? They should have life insurance to cover expected post-mortem expenses as well. As for older people with larger estates, good financial planners can get around this type of tax anyway.
Depreciation: Did anyone really think it made sense to depreciate a $249,999 investment in the first year?? I know a buldozer loses value when you drive it off the lot... but 100%?
Reducing depreciation allowances will open up the lease/rental markets again and reduce the number of idle assets out there.
"In its proposed fiscal year 2011 budget, the Obama administration has called for making the R&D credit permanent."
http://techdailydose.nationaljournal.com/2010/02/jobs-bill-may-include-rd-tax-c.php
Tax Cuts vs Unemployment Assisstance:
Tax Cuts: 1.03
Unemployment: 1.63
Where a figure of 1.0 means that one dollar of spending or tax cuts produces one dollar of economic activity. So... unemployment benefits go right back into building the economy by creating demand for products and services. Tax cuts on the top bracket mainly go into a retirement fund or the stock market and get very, very diluted.
http://www.tommywonk.com/2009/01/will-stimulus-package-work.html
(Note also where accelerated depreciation sits in Table 1.)
Numbers provided by Mark Zandi.