I am impressed with Republican intransigence against allowing Barack Hussein Obama to raise taxes for a third time as he hides behind bogus arguments about sequestration. Just when we thought the Republican party was dead, it comes roaring back to life and says NO to the Manchurian.
Have the mainstream media, and the American people, forgotten that Barack Obama has succeeded in raising taxes on the middle class TWICE already? First as part of Obamacare, which has an orgy of new taxes affecting all Americans (see my essay Obama Socialism / High Taxes Already Underway, Fiscal Cliff Just an Encore), and second as part of the recent debt ceiling showdown, in which Republicans gave in on raising taxes substantially on all Americans through a 50% increase in the payroll tax (from 4% to 6%) and through increased rates on “high” incomes.
Rob Bluey wrote a blog post that provided a great summary of these tax increases (link), and here is the bullet point list (if you just had breakfast, you might have a hard time keeping it down):
Tax increases the fiscal cliff deal allowed:
1. Payroll tax: increase in the Social Security portion of the payroll tax from 4.2 percent to 6.2 percent for workers. This hits all Americans earning a paycheck—not just the “wealthy.” For example, The Wall Street Journal calculated that the “typical U.S. family earning $50,000 a year” will lose “an annual income boost of $1,000.”
2. Top marginal tax rate: increase from 35 percent to 39.6 percent for taxable incomes over $450,000 ($400,000 for single filers).
3. Phase out of personal exemptions for adjusted gross income (AGI) over $300,000 ($250,000 for single filers).
4. Phase down of itemized deductions for AGI over $300,000 ($250,000 for single filers).
5. Tax rates on investment: increase in the rate on dividends and capital gains from 15 percent to 20 percent for taxable incomes over $450,000 ($400,000 for single filers).
6. Death tax: increase in the rate (on estates larger than $5 million) from 35 percent to 40 percent.
7. Taxes on business investment: expiration of full expensing—the immediate deduction of capital purchases by businesses.
Obamacare tax increases that took effect:
8. Another investment tax increase: 3.8 percent surtax on investment income for taxpayers with taxable income exceeding $250,000 ($200,000 for singles).
9. Another payroll tax hike: 0.9 percent increase in the Hospital Insurance portion of the payroll tax for incomes over $250,000 ($200,000 for single filers).
10. Medical device tax: 2.3 percent excise tax paid by medical device manufacturers and importers on all their sales.
11. Reducing the income tax deduction for individuals’ medical expenses.
12. Elimination of the corporate income tax deduction for expenses related to theMedicare Part D subsidy.
13. Limitation of the corporate income tax deduction for compensation that health insurance companies pay to their executives.
Lately mr. Obama was protesting that in order to avoid across-the-board sequestration of the federal budget, he needed “revenue increases”, as if he didn’t just get a whole heaping pile of them.
Does he think we’ve forgotten?
We haven’t, but it bears repeating: this anti-wealth bureaucrat has scored two giant tax increases during his destructive regime, and his acting as though he hasn’t is all part of his master plan to destroy the United States.
The revived Republican backbone, along with recent polling data suggesting that sequestration does not scare the average American, is very welcome news indeed.