The Coming Tax Assault I: 2011 Destroyed by Tax Increases on Everyone

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.

There are so many new taxes and taxes that are going to come back from the dead that it is tough to know where to begin, so let's start at the end- on midnight of December 31, the death tax returns. If you die before than, there is no tax on your beneficiaries property simply because you died, but if you die in 2011, the government will swoop in after you die and take more of your already-taxed before property simply because you are dead. They will take 55% of the property of those who have left behind $1 million or more in savings and redistribute that property to favored political groups in society. Of course this is immoral and unethical, but that's what you get when you vote Democrat. If you are a small business owner or farmer, you may very well have an estate that is valued in excess of $1 million, especially if you have worked hard your whole life and been successful, and after you are dead government agents will come in and figure out how to destroy your life's work and break it up and redistribute it to those who didn't work hard and earn it. This will obviously hurt our economy.

The Bush tax cuts are also set to expire in 2011. These tax cuts are not just 'for the rich'- the lowest bracket for the personal income tax, or the tax cuts 'for the poor', will jump 50% from 10% today to to 15% under Obama and the Democrats. You read that correctly- Obama and the Democrats will have worked to raise taxes on the most poor in our society by 50%.

The next lowest income bracket, we'll call that 'taxes on the lower-middle class' or 'taxes on the working class', will be increased from 25% to 28%, and 'taxes on the upper-middle class' or 'taxes on the hard-working class' will be increased from 28% to 31%. Again, these tax increases will strike the middle class as well, meaning that more of your money that you work hard for every day will be taken to you and transferred to the government who will then transfer that money to various politically connected groups. You will have less money to spend on goods and services, which will mean lower demand for those products, which will mean someone will lose a job who provides or makes those, which will mean someone else on welfare sucking down tax money. Unemployment will raise, consumer demand will fall, and our society will be more poor because of these tax increases.

Oh, I guess 'the rich' also will be taxed at higher levels too, although once you become rich, you are able to hire good tax attorneys who figure out how to hide your wealth from the government anyways. And I imagine with a more confiscatory government swooping in to take more of your wealth just because you are more successful will encourage more people to seek to hide their income and assets behind politically-engineering loopholes and accounting tricks, leading to the tax increases 'on the rich' not taking as much of their wealth as liberals and Democrats hope. The details are that those currently in the 33% taxable income bracket will have their taxes increased to 36% and the 'taxes on the super-rich' will be increased from 35% to 39.6%. I predict that the results of these massive tax increases on the rich will not provide the revenue that the government hopes it can steal from these people, and so they will demand higher and higher taxes on 'the rich' out of envy and greed. This immoral theft will result in more money and effort spent in hiding assets from an unethical government rather than in doing anything good for society, less money at the top for goods and services resulting in less demand for products resulting in unemployment and a falling economy, considerably less 'play money' for the 'rich' to put in the bank where it can be used for mortgages or small business loans, or less 'play money' for the 'rich' to invest in the stock market leading leading to depreciating assets and less business investment.

Democrats, liberals, and anyone who votes for them, are bringing this falling economy on us in 2011 by letting the Bush tax cuts expire and the death tax revive. But that isn't all- those who voted for Democrats in 2008 also share the blame for the massive amounts of taxes that come with the new Obamacare bill. That will be my next post.

Source: Investors Business Daily.