How Obamacare will Cripple the US Economy
The problem is not that people are taxed too little, the problem is that government spends too much. ~ Ronald Reagan
You’ve probably heard of the 1,000 page, trillion dollar health care bill being rammed through Congress at the same time the American public are focused on the Judge Sotomayor hearings. (No doubt this was intentional by Congressional Democrats) But what you probably haven’t heard, since the state-run media complex has conveniently ignored it, is how the new liberal health care plan will obliterate the US economy by increasing taxes in some cases over 10% if combined with other tax increases being proposed by President Obama and Democrat leaders.
In an excellent article from Phil Kerpen @ foxnews.com, he points out the massive tax increases that will be initiated over the next 2 years by the Democrats if combined with their new government health insurance plan…
The big shocker is that the surtax on high-income earners, including small businesses, is much steeper than the rumored 3 percent that I talked about in my podcast yesterday. Instead it’s 5.4 percent. Not of taxable income, mind you, but of adjusted gross income. That means the tax applies to income that was spent on home mortgage interest, medical expenses, property taxes, charitable contributions, and nearly everything else currently deducted from taxable income.
Combined with President Obama’s plan to repeal the Bush tax cuts on schedule in 2011, this would mean hiking the top marginal capital gains tax rate from 15 percent to 25.4 percent–much higher than Obama promised on the campaign trail, and near the 28 percent rate from before the 1997 Bill Clinton tax cuts. Such a tax hike would slam the brakes on capital formation and wallop capital markets with another gut punch just as they are finally beginning to recover from the financial crisis. It would also dramatically inhibit badly needed business investment.
The tax hit on capital gains, however, would pale compared to the new top rate on ordinary income, already scheduled to go from 35% to 39.6 percent in 2011, but now pushed up to 45 percent with the new surtax, and actually substantially higher than that as a percentage of taxable income because the new 5.4 percent surtax is applied to AGI.
Wow! – Never before in history has such tax increases been proposed by a President and those in power. Mark my words, it will obliterate our economy if ever allowed to pass. I break it down simply for you below.
- Capital Gains Tax will increase 10.4%! – Good bye jobs and investment as the government sucks up all these valuable resources!
- Top rate income tax would increase by 10% from 35% to 45%. – I guess those on welfare will be creating the new jobs with their new businesses ventures!
These 2 initiatives will destroy badly needed business investment that is required to get our economy moving again… Without this needed cash flow, businesses will be unable to invest in their business ventures and with be restricted in creating new jobs and opportunities for their employees. In addition, prices on everything we purchase will be pushed skyward as companies try to recoup their losses due to federal pick pocketing.
If your shocked and annoyed, you better sit down, because it actually gets a lot worse as Kerpen reveals the additional tax measures from President ‘Spend A Lot’.
And it actually gets a lot worse. Employers would also be mandated to provide health insurance under the bill, and the cost of health insurance would likely skyrocket because of new regulations called guaranteed issue and community rating. The only alternative, which many companies would either be forced into by cost considerations or choose for simplicity, would be to pay a payroll tax of as much as 8 percent. That’s on top of the existing 15.3 percent payroll tax for Social Security and Medicare, creating a new total payroll tax of 23.3 percent.
There would also be a new tax on individuals who don’t have health insurance, flying in the face of President Obama’s key primary campaign promise not to require people to be insured. That tax would be another 2.5 percent of AGI.
These eye-popping numbers, of course, don’t include state and local taxes, which are also rising in most of the country.
The tax hikes in this bill represent the last piece of the puzzle–along with loose monetary policy and high government spending–to repeat the key economic blunders of the 1970s, with all the misery that came with them.
So lets continue to break down this left wing disaster for our economy…
- Capital Gains Tax will increase 10.4%! – Good bye jobs and investment as the government sucks up all these valuable resources!
- Top rate income tax would increase by 10% from 35% to 45%. – I guess those on welfare will be creating the new jobs with their new businesses ventures!
- Small & Large Business payroll tax will increase 8% from 15.3% to 23.3%! – This should get hiring going in no time flat!
- Tax of 2.5% for all individuals who don’t take healthcare! – This must fall in their Marxist Constitution making health care a right for every American!
- Possible State and local government tax increase.- Icing on the top!
- Loose monetary policy under the Obama Administration – This is the dark horse, that will do the most damage to our economy without the people even knowing it!
Business 101 for the Left
If you actually think this will improve our economy, or even the life, liberty, and happiness of the citizens in this country, than I officially declare you brain dead.
This plan by liberal Democrats will be an outright disaster and will cripple our economic recovery, with the most likely outcome of another deep recession. (Note, even the moderate Democrats are balking at it!)
I find it amazing that liberals don’t understand basic business economics. If you take the income from those that achieve and work hard for success, then you remove the ability for businesses to create jobs, give raises to their employees, and invest in new business opportunities. (Essentially you shoot yourself in the leg with your own pistol)
What is even more crazy is that it hurts the poor and those in need even greater! (Those that the Democrats pretend to care for.) Because of these ludicrous tax increases, those who are looking for jobs can’t get employed, or are forced to take low paying alternatives. What they will end up creating is an even bigger nanny state, with the majority of citizens relying on the government to survive.
The sad part is many on the left know this already… They don’t care that many will loose jobs or will be in financial ruin, because their ultimate goal will be accomplished; For the elite to take more control over the lives of the citizens, and transfer all power from the individual to the central government. This, more than hugging trees or murdering babies, is their ultimate end desire… Can’t you see it?
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