We’ll undoubtedly be treated to more of the Bush blame game. Forget for a moment that Bush held average unemployment at 5.3%, saw the strongest productivity growth in four decades, and witnessed robust GDP growth. Set aside the fact that he oversaw this growth despite an inherited recession, 9/11, Hurricane Katrina, and wars in Afghanistan and Iraq. Focus instead on the simple fact that the last budget that a Republican Congress had control over had a deficit of approximately $162 billion dollars — a large number to be sure, but not so large that the Democrats and our “progressive” president couldn’t expand it in under two years by nearly a factor of ten. Under the Obama administration and with the Democrats in complete and total control, we have record debt, record deficits, record unemployment, record underemployed, record foreclosures, record bankruptcies, and soon, record tax increases.
That bolded section is something to take a long hard look at. The first budget passed by Congress after the Democrats took control in 2007, had a budget deficit of $462 billion dollars. The first budget signed by Mr. Obama was $1.7 TRILLION DOLLARS! More than 10 time that of Mr. Bush's last GOP Congress. Last year's budget was $1.6 Trillion dollars...so in two years of complete Democratic control of both the legislative and executive branches of government they added $3.3 Trillion dollars to the debt...that leaves off the $1.3 Trillion dollars of the last budgetary year for Mr. Bush that was passed by Congress AFTER HE LEFT OFFICE and it was then signed by the newly sworn in President Obama...so just what has Mr. Bush wrought?
That's rather difficult to quantify, but with the plethora of these:
sprouting around the country, I'd have to say that he probably will fare far better through the lens of history than the current occupant of the White House will. On the other hand, on January 1, 2011, the largest tax increase in history will go into effect. Pretty much everyone's taxes will go up by 13%. Some businesses will see a 28% increase while other only see a 23% increase. Death taxes will double...and all sorts of fees, taxes, etc., will kick in under ObamaCare...no wonder business has been very nervous the past year or so. They worry about just what it will cost them to hire each individual "new" employee...much less how much it will cost them to continue to employ "old" workers.
American's for Tax Reform has published this:
Bush Tax Cuts Expire. Congress didn’t even have the strength of character to stay and vote on extending the Bush tax cuts before running home to protect their professional political careers. These tax cuts all expire on January 1, 2011. Thereafter, the top income tax rate will rise from 35% to 39.6%, the same rate at which two-thirds of small business profits are taxed. The lowest rate will rise from 10% to 15%. All the rates in between will also rise. Somewhere I seem to recall a promise about tax cuts for 95% of “working families.”This is what we face in 2011...the largest tax increase in our history...and it's all Bush's fault, right?
- Higher Taxes on Marriage and Family. The “marriage penalty” (narrower tax brackets for married couples) starting with the first dollar of individual income. The child tax credit will be cut in half from $1000 to $500 per child. The standard deduction will no longer be doubled for married couples relative to the single level. The dependent care and adoption tax credits will be cut.
- Death Tax Returns. 2010 is a great year to die; there is no death tax. For those dying on or after January 1, 2011, however, there is a 55% top death tax rate on estates over $1 million. A person leaving behind a home and a 401k could easily pass along a death tax bill to their family.
- Higher tax rates on savers and investors. The capital gains tax will rise from 15% this year to 20% in 2011. The dividends tax will rise from 15% this year to 39.6% in 2011. These rates will rise another 3.8% in 2013.
The second wave — summarized by Joan Pryde, senior tax editor for the Kiplinger letters — will follow closely on the heels of the first.
Obamacare will be the focus of congressional wrangling over the next two years, but it is unlikely to be repealed in that time. There are over 20 huge and completely new taxes contained within the new health care law which was hurried through Congress without being read and passed against the will of the American people. Several will first go into effect on January 1, 2011.
The third wave will ensnare an additional 28 million Americans and countless small businesses.
- The “Medicine Cabinet Tax.” Under Obamacare, the ability to use pre-tax dollars from health savings accounts, flexible spending accounts, or health reimbursement accounts to purchase non-prescription, over-the-counter medicine will be a thing of the past.
- The “Special Needs” Kids’ Tax. There will be a new cap on flexible spending accounts of $2500 where there currently is no limit. This will hit parents of special needs children particularly hard. Tens of thousands of parents with special needs kids currently use FSAs to pay for their kids’ educations — which can add up to tens of thousands of dollars per year.
- The HAS Withdrawal Tax Hike. The health care bill Nancy Pelosi told us we’d have to pass to see what was in it increases the additional tax on non-medical early withdrawals from a health savings account from 10% to 20%, disadvantaging them relative to IRAs and other tax-advantaged accounts, which remain at 10%.
- The Alternative Minimum Tax and Employer Tax Hikes. The AMT, which was originally intended simply to make sure that wealthy taxpayers didn’t use tax shelters and other tactics to avoid having to pay any taxes at all (a good start for an argument for a flat tax), affected nearly 4 million families last year. Starting in 2011, it will affect over 28 million families. According to the leftist Tax Policy Center, Congress’ ineptitude and failure to index the AMT will result in an explosion of AMT taxpaying families, each of which will have to calculate their tax burdens twice, and pay taxes at the higher level.
- Small Business Expensing Is Slashed and 50% Expensing Disappears. Obama doesn’t understand that small businesses can normally expense (rather than slowly deduct, or “depreciate”) equipment purchases up to $250,000. This will be cut down to $25,000. Larger businesses can expense half of their purchases of equipment. In January of 2011, all of it will have to be “depreciated.” The effect is a huge tax and an additional expense to the businesses which create jobs.
- Tax Benefits for Education and Teaching Slashed. The deduction for tuition and fees will no longer be available. Tax credits for education will be limited and teachers will no longer be able to deduct classroom expenses. Coverdell Education Savings Accounts will be cut, as will employer-provided educational assistance. The student loan interest deduction will be disallowed for hundreds of thousands of families.
- Charitable Contributions From IRAs Disappear. Under current law, an IRA can contribute up to $100,000 per year directly to a charity without penalty. This contribution also counts toward an annual “required minimum distribution.” Not any more, thanks to a compassionate and ultra-liberal Congress.
- The Health Care Tax That Wasn’t. Remember when your president told you straight-faced that when Americans are required to obtain health insurance or pay a penalty it wasn’t a tax? He lied. In defending the Obamacare mandate in court, Obama and his army of lawyers are now defending the requirement as an exercise of the government’s “power to lay and collect taxes.” How’s that hope and change working out for everybody? I thought everybody making less that everybody making less than $250,000 per year wouldn’t see an increase in their taxes.