Morning Bell: 13 Tax Increases in 2013http://blog.heritage.org/2013/01/08/tax-changes-2013/
By Curtis DubayJanuary 8, 2013 at 8:59 am(44)
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 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 the Medicare Part D subsidy.
13. Limitation of the corporate income tax deduction for 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 is through 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.
- Whirlaway
- 01-08-2013, 01:42 PM
From the Heritage Network.........
- CJ7
- 01-08-2013, 01:53 PM
good
like ive already said, the ss tax increase works for me ... people pay in now and take out later, the increase adds $$ to the trust and helps take the burden off the deficit ... translation: people are paying their own way again, what self proclaimed rightwinger has a problem with that? you whirlie?
as for the increases on the upper tier earners, if they haven made any $$ with the savings theyve enjoyed for over a decade, thats their fault, not mine
like ive already said, the ss tax increase works for me ... people pay in now and take out later, the increase adds $$ to the trust and helps take the burden off the deficit ... translation: people are paying their own way again, what self proclaimed rightwinger has a problem with that? you whirlie?
as for the increases on the upper tier earners, if they haven made any $$ with the savings theyve enjoyed for over a decade, thats their fault, not mine
- cptjohnstone
- 01-08-2013, 10:24 PM
you mean the lying mother fucker lied again?
- Yssup Rider
- 01-08-2013, 10:41 PM
If you're referring to Whirlyturd, the odds on favorite for 2013 Dipshit of the Year, then yes...
- SpeedRacerXXX
- 01-09-2013, 06:45 AM
goodI agree 100%. I was amazed when the ss tax was lowered by 2% 2 years ago. Gave me an extra $2500 a year tax free in my pocket. Did not, and still do not, understand the logic behind it but I loved it but realized it would not last. No one in Washington said it would.
like ive already said, the ss tax increase works for me ... people pay in now and take out later, the increase adds $$ to the trust and helps take the burden off the deficit ... translation: people are paying their own way again, what self proclaimed rightwinger has a problem with that? you whirlie?
as for the increases on the upper tier earners, if they haven made any $$ with the savings theyve enjoyed for over a decade, thats their fault, not mine Originally Posted by CJ7
For me personally, the other new taxes are meaningless -- no major impact at all on me.
- EXTXOILMAN
- 01-09-2013, 08:13 AM
I agree 100%. I was amazed when the ss tax was lowered by 2% 2 years ago. Gave me an extra $2500 a year tax free in my pocket. Did not, and still do not, understand the logic behind it but I loved it but realized it would not last. No one in Washington said it would.And thus the reason we got O'Blunder for another four years...
For me personally, the other new taxes are meaningless -- no major impact at all on me. Originally Posted by SpeedRacerXXX