Eventually, Americans are going to realize what Democrats in Congress already know: America went over the fiscal cliff long ago.
The only question remaining is how the Democrats will manage to get the type of massive tax increases needed to sustain a welfare state and federal bureaucracy grown to an historically unprecedented size.
Noted tax expert Grover Norquist believes Obama’s stated goal of getting Republicans to agree to increase taxes on the rich is not the real goal of the Obama administration or Democrats in Congress.
“This is just the first act of a two- or three-act play,” Norquist said, arguing that Obama will insist on some form of tax rate increase for the highest income earners as part of any last-minute deal passed by Congress to avoid the fiscal cliff.
“The first act is to get congressional Republicans to put their fingerprints on what amounts to a minor tax increase. After raising taxes on the rich a little bit, the Democrats will come back for serious tax revenue. In acts two and three, the Democrats will come back for the real money – an energy tax and a value-added tax that will impact everybody, especially the middle class.”
Norquist insisted Democrats in Congress and the liberal press are playing an elaborate game designed to blame Republicans for budget deficits and keep serious discussion of spending cuts and entitlement reform off the table.
“Congressional Democrats know raising taxes on the rich will not produce enough tax revenue to reduce significantly the trillion dollar annual budget deficits being run by the Obama White House,” he said.
“The reason the Democrats scream ‘tax the rich, tax the rich,’ is because they are going to pivot very soon to place a three-trillion-dollar tax increase on the middle class and they want ringing in the public’s ears that there wouldn’t have had to do this if the Republicans in Congress had acted right away to place a decent size tax on the rich.”
The real point of the debate over the fiscal cliff was to distract the attention of the mainstream media and the public the reality of a $1 trillion new tax certain to hit all Americans next week, beginning on Jan. 1.
These new taxes will be on top of the $1 trillion in new taxes going effect on Jan. 1 to pay for the first stages of implementing Obamacare.
Obamacare was front-loaded, so all the attractive features such as no exclusion on health insurance for pre-existing exclusions was implemented, at least in part, before the election.
Now that the election is over, here comes all the pain Obamacare is certain to cause all taxpayers, including the middle class, with grave consequences for the future of employment in the United States.
Grover Norquist’s organization, http://www.atr.org/trillion-obamacare-tax-hike-hitting-jan-a7393 Americans for Tax Reform, has pulled from http://www.cbo.gov/sites/default/files/cbofiles/attachments/43471-hr6079.pdf Congressional Budget Office sources a list of the new taxes.
Just take a minute and scan this list and you will be shocked at how expensive Obamacare truly is.
As you read the list, ask yourself what an impediment to job creation and a drag on the economy these new taxes are certain to be.
1. The Obamacare Medical Device Tax
Obamacare imposes a new 2.3 percent excise tax on the gross sales of medical device manufactures, affecting 12,000 plants across the country that employ 409,000 people.
2. The Obamacare Flex Account Tax
The 30-35 million Americans who have set up a pre-tax Flexible Spending Account, or FSA, to pay for the family’s basic medical needs will face a cap of $2500, squeezing $13 billion of tax money from American taxpayers over the next 10 years.
3. The Obamacare Surtax on Investment Income
For households making at least $250,000 and for individuals making $200,000, the current 15 percent tax on capital gains will go to 23.8 percent, while the current 15 percent tax on dividends will go to 43.4 percent.
4. The Obama “Haircut” for Medical Itemized Deductions
Currently, taxpayers with medical expenses exceeding 7.5 percent of adjusted gross income are allowed to take deductions for those expenses. Under Obamacare, a 10 percent threshold is imposed on adjusted gross expenses, dramatically limiting the deduction for the least healthy of Americans, including those near retirement with modest incomes and high medical bills.
5. The Obamacare Medical Payroll Tax Hike
The Medicare payroll tax is currently 2.9 percent of all wages and self-employment profits. Under Obamacare, wages and profits exceeding $250,000 for married couples and $200,000 for single taxpayers will pay a tax of 3.8 percent. This will marginal income tax hike will hit small business owners and self-employed workers the hardest.
Norquist insists the Obama White House and Democrats in Congress are risking a tax revolt in America by pursuing this strategy.
“The size of Tea Party Two is going to dwarf Tea Party One,” he predicted.
“Obama is again overstating his mandate. Four years ago, he was convinced he was king. He took a 70 percent approval down to 50 percent, and lost a Democratic majority in the House of Representatives in the process. Now, Obama starts at 52 percent and he is going not only to spend too much, but also too tax too much.”
1776Nation.com
Dr. Jerome Corsi, PhD is the founder of the 1776 Nation and chief writer for the Tea Party Research Team of www.TeaParty.org. He has authored many books, including No. 1 N.Y. Times best-sellers “The Obama Nation” and “Unfit for Command.”
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