The largest tax hike in history, affecting all taxpayers, will take place at the end of this year when the Republican tax cuts will expire. Starting January 1, 28 million middle Americans will be socked with a massive Alternative Minimum Tax (AMT) which George W. Bush had eliminated. That's a "gotcha" which penalizes taxpayers in ways they never expect, adding big tax penalties based on an "alternative" way of calculating taxes due. Upper-income Americans will see a big jump in their marginal tax rates. Their accountants are already telling them that the more they work, the less additional money they will take home, so they may be already slowing down, canceling investments, or retiring to draw Social Security. Hardworking parents who are saving for their children's future will be hit by the reinstatement of the massive "death tax" on January 1. They may wonder why they work hard and save, if their money will go to Uncle Sam and to people who choose not to work.
Marriage penalties will kick in, both in the income tax law and in Obamacare. Obama's financial favoritism toward unmarried women, his second biggest voting bloc, has become common knowledge. Those who choose to control their own health care through Health Savings Accounts will be slapped with new taxes. That's just one more way to promote the goal of moving all health care to government control.
Employers are not hiring because they know they will soon be paying not only higher taxes but also more health care costs or penalties. Depreciation allowances for investment in equipment will be lowered, which means businesses will do less investing.
There is only one antidote for these dreary predictions. On November 2, American voters will have the chance to choose real change from the failed Illinois borrow-and-spend policies by electing new Members of Congress who commit to extending the expiring tax cuts.
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