Congress has approved a poorly constructed tax bill to avoid the “fiscal cliff.” But the president and the Democrats lied when they declared that the “middle class” would not see taxes raised.
Effective immediately the average income earner is now subject to an additional $1,635 annually in new taxes.
One should also remember that the debate was over extending the original Bush era tax cuts for Americans to take us out of the recession following the 9-11 terrorist attacks. It worked.
The Democrats would love to have had that tax cut expire all together. They love taxing. They love spending our money more.
And President Obama and Democrats also carefully avoided any mention of the five new Obama Care taxes that went into effect on New Year’s Day. This is the first wave of 20 new taxes to fund Obama Care that will place an additional $1 trillion tax burden on ALL Americans. (Surprise! Obama Care isn’t “free” after all).
Taxes are now imposed on all medical devices. These “devices” range from syringes and catheters to new X-ray machines, etc. Doctors and hospitals will simply pass on that cost to the patient. More money out of our pocket.
For those of us who deduct medical expenses from taxes, Obama Care limits deductions — allowing the government a broader area to tax. This provision will most harm retirees and those with modest incomes but high medical bills.
For higher income families the Medicare payroll tax will be raised to 3.8 percent. This will have a direct impact on small-business owners who are liable for self-employment taxes. Some businesses will close because they can’t afford the increases.
For those who participate in Flexible Spending Accounts (an alternative to health insurance) Obama Care limits the amount set aside to $2,500 annually that will be eligible for deduction from income taxes — squeezing $13 billion of tax money from these Americans. This will also limit the patient’s ability to pay high medical bills.
And for those Americans that use investment income to live on, or sell a house, they will face a new surtax of 3.8 percent. More money out of our pockets.
It’s been repeatedly demonstrated that increasing taxes slows the economy. Today’s economy is poor and very fragile and we can expect these combined taxes to worsen the recession and raise unemployment.
Gary P. Morris