The Heritage Foundation’s Center for Data Analysis has run simulations using their Individual Income Tax Model comparing current law with President Obama’s most recent budget proposal which includes: 1) higher taxes on individuals earning more than $200,000 and couples earning more than $250,000; 2) higher taxes on capital gains; 3) higher taxes on dividends; and 4) the return of the death tax. The CDA found that the Obama tax hikes would:
- Destroy an average of 693,000 jobs every year.
- Drain $726 billion from disposal income, $38 billion from personal savings, and $33 billion from business investments.
- Raise taxes on the 55% of all joint filers earning more than $250,000 who run small businesses that employ others.
- Cost the average non-farm small-business owner $3,500 more in taxes.
- Cost the 49% of all seniors with income below $250,000 $525 in additional dividend taxes.
- Cost the 25% all seniors with income below $250,000 $742 in higher taxes.
The bottom line is clear: All Americans would suffer economic harm under the Obama tax hikes. There simply is no justification for raising taxes when the unemployment rate is already near 10%. The American people already know this, which is why the same independents who voted for President Obama by a 52% to 44% margin also oppose the Obama tax hikes. After polling these same independents, Independent Women’s Voice CEO Heather Higgins and former President Bill Clinton pollster Doug Schoen describe what these independents really want: “Decrease the size and scope of government, cut spending and taxes, balance the budget, reduce the federal debt, reduce the power of special interests and unions, repeal and replace the health-care legislation, and decrease partisanship.”
From the Heritage Foundation
This president will never do any of the things that Higgins and Schoen described. He is anti all those things and pro all of them. “Decrease the size of government?” In whose dreams? “Reduce the power of unions?” I don’t think so. “Repeal health care legislation?” HA! what color is the sky on your planet?
10 Comments | tags: Bill Clinton, Bush Tax cuts, business investments, capital gains, death tax, dividends, Doug Schoen, Heather Higgins, income tax, independents, Liberals, Obama tax hikes, politics, pollster, small business, the Heritage Foundation, unemployment | posted in Congress, Conservative blog network, economics, education, elections, Obama, politics, Senate, socialism, US Constitituon, washington dc
Well Nancy, you passed the bill and we will be finding out for months what’s in it – what you and your party has done to us. You know, we the folks who all make less than $250K/year?
Steve Moore of the WSJ said in a Heritage speech in Michigan last month that as of January 1, we will see the largest tax increase in this nations history. Capital gains will go up to over 20% from 15%. Dividend tax will increase from 15% to 43%. That is almost triple. He said that this will mean no dividends will be paid to investors. Microsoft paid out $40billion dollars in dividends in ’05, the largest in history and when asked about this Bill Gates stated it was because of the Bush tax cuts. That won’t be happening again for a long while.
How will this affect those folks with 401K’s? Many working people in this country have those accounts through their employers.
Business taxes go up from 35% to 40%. That means less, or almost no, new business development and investment. Moore said that 2 out of 3 of those people who will be hit the hardest with these tax increases all own, operate or invest in small businesses. These are the job creators – or should I say, were the job creators.
But the most dramatic increase will be the return of the death tax – from zero to 55%, literally overnight. (Bernie Saunders (socialist VT) wants that increase to be 65%!) The effect this will have on family businesses and family owned farms will be devastating. The idea – the American dream – of having a business or farm to leave to our children is now a thing of the past. They will have to be sold to pay the taxes! How un-American and patently absurd is this? And how many times does our money have to be taxed? By the time of death, that money has already been taxed a multitude of times.
All of this was hidden in the ObamaCare bill.
Before December 31st, there will be a huge stock sell-off. And after January 1st, unemployment will rise. You don’t have to be an economist to figure this out. Call me cynical but I’d also be interested in knowing if there’s an increase deaths before December 31.
These people have to be voted out in November and then we have to pray that from November until the new Congress come in, that the democrats don’t push through all kinds of crap during the lame-duck session.
We can pray about it but I know they will do it.
1 Comment | tags: 401K, Bernie Saunders, death tax, health care bill, Heritage Foundation, Obama, Obamacare, politics, small business, Steve Moore, tax increases, taxes, WSJ | posted in Congress, Conservative blog network, Obama, politics