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THIRTEEN Tax Increases for 2013

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  • Bob Wynman
    Randist Bo7b aka Bob Wynman WWP Email Member (bobalou@wynman.com) Your State thieves at work. And this is just at the federal level. Still think the State is
    Message 1 of 1 , Mar 7, 2013
    Randist Bo7b aka Bob Wynman WWP Email Member (bobalou@...) Your State thieves at work.

    And this is just at the federal level.

    Still think the State is beneficial??

    --bob & lou

    13 Tax Increases in 2013

    New Year's Day was tough for taxpayers. Thirteen tax increases kicked in.

    The deal that Congress and President Obama struck that finally-but only partially-avoided the fiscal cliff resulted in seven tax increases.

    Those hikes combined with six tax increases from Obamacare that also began on New Year's Day.

    13 Tax Increases That Started January 1, 2013

    Tax increases in the fiscal cliff deal:

    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 "anannual 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 ondividends 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 oninvestment income for taxpayers with taxable income exceeding $250,000 ($200,000 for singles).

    9. Another payroll tax hike: 0.9 percent increase in theHospital 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 deductionfor expenses related to the Medicare Part D subsidy.

    13. Limitation of the corporate income tax deductionfor compensation that health insurance companies pay to their executives.

    Each of these 13 tax increases will slow the economy, meaning that businesses will create fewer jobs. Fewer jobs will make it even more difficult to land a job than it already is for the more than 12 million Americans looking for work.

    President Obama demanded these higher taxes. Obama's tax increases, in Obamacare and through the fiscal cliff deal, will not curb deficits and debt, because growing spending is driving America's budget crisis. Congress needs to immediately turn its attention to the actual cause of our deficit and debt problem: too much spending. The proper way to address this problem isthrough reforms to entitlement programs.

    President Obama promised the American people a "balanced approach" of tax increases and spending cuts to reduce deficits and debt. He has achieved the tax increase portion of that approach. Now Congress needs to force him to follow through on the spending cuts portion.

    "The history of totalitarian regimes is reflected in the evolution and perfection of the instruments of terror and more especially the police."
    --Carl J. Friedrich Source: The Pathology of Politics, 1972

    "The spread of evil is the symptom of a vacuum. whenever evil wins, it is only by default: by the moral failure of those who evade the fact that there can be no compromise on basic principles."
    --Ayn Rand, Capitalism: The Unknown Ideal, 1966

    --bob & lou
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