The Coming Tax Assault II: 2011 Destroyed by Obamacare Taxes

Yesterday, in The Coming Tax Assault I: 2011 Destroyed by Tax Increases on Everyone I wrote:

2011, regardless of what happens in the 2010 elections, will be a bad year for America due to the avalanche of tax increases that will hit everyone, specifically dead people, married people, rich people, investors, poor people, those with kids, those who save, those who buy medications, and small businesses. New tax increases of varying amounts will be levied on these groups starting in 2011, and the result of these tax increases will be lower spending, lower saving, lower investment, lower business activity, and increasing hiding of taxable income by those that can, with the end result being falling revenues to the government and less economic activity. That will mean less jobs, less income, and a lower quality of life for you. The blame for this can be laid 100% on politicians, namely anyone who voted for Obamacare and anyone who refused to vote to make permanent the 2001 tax cuts, both of whom are almost all Democrats and who are all liberals.

My post yesterday focused on what is going to happen when the death tax comes back and when the 2001 tax cutes expire. Today I will focus on all the other tax increases that Democrats in Congress and under President Obama have implemented to take more of your wealth from you.

Via Investors Business Daily, the "second wave" of hikes, as Americans for Tax Reform puts it, are designed to pay for ObamaCare and include:

• The 'Medicine Cabinet' Tax, which includes reducing the amount that Americans are able to put in their personal health savings accounts or flexible spending accounts and a tax on health reimbursement pretax dollars used to purchase nonprescription, over-the-counter medicines (except insulin).
• The 'HSA Withdrawal' Tax. This increases the additional tax on nonmedical early withdrawals from an HSA from 10% to 20%.
• 'Brand Name Drug' Tax. Makers and importers of brand-name drugs will be liable for a tax of $2.5 billion in 2011. The tax goes to $3 billion a year from 2012 to 2016, then $3.5 billion in 2017 and $4.2 billion in 2018.
• 'Economic Substance Doctrine' Tax. The IRS is now empowered to disallow perfectly legal tax deductions and maneuvers merely because it judges that the deduction or action lacks 'economic substance.'
• 'Medicare Tax'. A new 3.8% Medicare tax begins in 2013.
• Finally, there is the tax (Obama said it wasn't a tax but now in court he says it is a tax) on Americans who decline to buy health care insurance.

These taxes are directly responsible to anyone who voted for Obamacare, which takes property from hard-working Americans in the form of higher taxes in order to provide government-healthcare to others- and I want to remind you that government-healthcare has death panels in it and funds abortions.

There are other taxes, so many to even discuss, as a result of a disastrous several years of Democratic control of the Congress and Presidency, that include alternative minimum tax's widening net, tax hikes on employers, the loss of deductions for tuition, the deletion of dozens of tax brakes, teachers won't be able to deduct their classroom expenses, employer-provided educational aid will be restricted, and thousands of families will no longer be allowed to deduct student loan interest.

These tax increases are all going to start to kick in over the next several years and all will grow in size as time goes on. These tax increases will hammer the US economy, sucking the life out of it by stealing property from those who earn it and giving it to those who are politically connected in society. Tyranny will increase as a mobster-like government redistributes wealth to chosen favorites, and the best and brightest realize that they would be better off ingratiating themselves to a mob-government than building new products or offering new services. The incentive to work and work hard will be less because if you do you'll be punished and if you don't you'll be rewarded. Our society will grow less wealthy, less moral, and less successful.

And it will all be because you or your friends or your family voted Democrat somewhere on the ticket somewhere in the recent past. The only hope, and it is a faint one, is that large conservative Republican majorities at every level of government will mitigate and lessen the damage of all of these taxes.