What do we have to look forward to in 2013 if President Obama is reelected and Democrats retain control of the Senate? Taxmageddon, that’s what. The Washington Post has the rundown of tax increases set to hit in January.
On Dec. 31, the George W. Bush-era tax cuts are scheduled to expire, raising rates on investment income, estates and gifts, and earnings at all levels. Overnight, the marriage penalty for joint filers will spring back to life, the value of the child credit will drop from $1,000 to $500, and the rate everyone pays on the first $8,700 of wages will jump from 10 percent to 15 percent.
The Social Security payroll tax will pop back up to 6.2 percent from 4.2 percent under the deal approved Friday by Congress. And new Medicare taxes enacted as part of President Obama’s health-care initiative will for the first time strike high-income households.
The potential shock to the nation’s pocketbook is so enormous, congressional aides have dubbed it “Taxmageddon.” Some economists say it could push the fragile U.S. economy back into recession, particularly if automatic cuts to federal agencies, also set for January, are permitted to take effect. (Read More)
The Democrats are going to say they want to prevent middle class taxes from increasing, but the only way to do so will be to hike taxes on the wealthy. It’s their usual shtick, and it’s getting so tiresome. This is what happens when Republicans compromise with Democrats.
Via Steven Hayward at Power Line, who ties this into the increase in gas prices.
Don’t expect the economy to improve much with tax increases, higher prices on gas and food, and the crippling regulations on businesses.
Update: Linked by Scared Monkeys – thanks!
Update 2: Wy Blog linked – thanks!