What are they waiting for? What’s all the excitement about? What? Haven’t you heard? The Democrats are about to make history. Barely able to contain their glee, Harry Reid, Nancy Pelosi and Barrack Obama (yeah, your right, it’s a three-ring circus) are waiting for the momentous date of January 1, 2011. On this date, the Democrats heap the largest tax hikes in American history onto the back of United States citizens. Oh, the cheering you will hear from the head of the Democratic Party, Nancy Pelosi, right down to local candidates like Susan Mackey Andrews. In six months, they will see the culmination of years of all the lies, deceit, and subterfuge (the Democratic Party Platform) that liberals can muster. Finally, the Democratic Party can really stick it to hard-working Americans the way it has yearned to for years.
You see, Eliot Cutler and the Carter administration tried to do this in the 70’s, but it was too clumsy and inept. Remember, they vetoed their own spending measures… twice. The Democrats needed leaders who had perfected the art of lying. Now enter the three-ring circus with Joe Biden running around the edges providing the comic relief, and you have a liberal masterpiece.
In January of 2011, the Democrats will eradicate several tax cuts the Republicans enacted for investors, small businesses and families. This is the first attack. These tax hikes will come in three calculated attacks on the American people. Is that strong language? Of course, it is. I’ll never play patty-cake with liberals.
The first onslaught: Personal income tax rates will rise from 35 to 39.6 percent. This will also affect two-thirds of small business profits. The lowest rates of 10 percent will increase to 15 percent and all the rates in between will rise. The marriage penalty will return. The Child Tax Credit will be cut in half (remember its for the children). Standard deductions will no longer be doubled for married couples. The dependent care and adoption credits will be cut. So much for caring for the least fortunate.
In this first wave, Democrats will reinstate the Death Tax. Now, I don’t have a lot, but I believe what you earn, you should keep. Who are the Democrats to take 55 percent of a man’s wealth after he dies? It belongs to his family, not the Socialist Democrats… talk about robbery. You know, I hate the Yankees and George Steinbrenner, but, at least, he knew when to die. He still is one step ahead of everybody else.
The Democrats with a higher tax will punish those who save and invest their money. Capital gains tax will rise from 15 percent to 20 percent, while; dividends tax will jump from 15 to 39.6 percent. The rates will increase again in 2013 by 3.8 percent.
The second barrage: there are more than twenty new taxes in Obama Care. Some that will go into effect on January 1, 2011 are as follows: “The Medicine Cabinet Tax” blocks Americans from using health savings accounts (HAS), flexible spending account (FSA), or health reimbursement (HRA) to purchase over the counter medicines. I thought Sue Mackey Andrews wanted to help everyone with… medicines… and stuff? Oh well, maybe I heard her wrong.
A particularly cruel tax from Obama Care is the “Special Needs Kids Tax.” Can you imagine? Yeah, now the Party “that’s for the children” (the biggest liberal lie ever!) is imposing caps on FSA (Flexible Spending Accounts)! Families of special needs children use these accounts for tuition to attend special needs schools. The cap is $2,500 and previously there was no limit. These schools can cost up to $14,000 a year. There is one more tax hike in this wave, The Health Savings Account Tax. This tax increases the penalty for early withdrawal of monies from 10 to 20 percent… double your taxes.
The third assault comes in the form of the Alternative Minimum Tax and Employer Tax hikes. A left leaning Tax Policy Center states that the amount of families trapped by the Alternative Minimum Tax will increase exponentially from 4 million to 28.5 million. This means 28.5 million families will have to calculate their taxes twice…double your taxes. The taxes on small business will be increased all over the board; so much so, it will have to wait for next week’s column. I want to thank Ann Pappas for providing the research and “ammunition” for this column
Now for the comic relief…. true story, but I will preface this by saying my wife won’t let me use the word that describes the symbol of the Democrats anymore. As I do enjoy being able to crawl in bed with her every night (here in my cave), I’ll go along with her and use different metaphors. So…true story… Joe Biden stops at an ice cream shop and orders a cone. Proprietor of the shop, small business owner, tells the Vice-President that it’s on the house. Joe Biden says,” Well, what can we do for you?” Small business owner, a working American Citizen, says, ”Just lower my taxes?” Mr. Biden replies, “What are you, a smart -‘Democrat’?” Actually, Joe, from all I’m hearing, I’m not sure there is such a thing.