Here’s the Inside Skinny
on Obama’s New Strategy
for Foisting Change Upon America…
More crises headed our way! That’s the new model for opportunistic power grabs that Team Obama has coming our way.
If Republicans don’t go along with Obama, they get the blame for his lousy economy. If they do go along, they’ve set themselves up to be rolled for the next manufactured crisis. Expect a series of “compromises” by the GOP over the coming year.
Take the recent “Fiscal Cliff” drama. While grandstanding about raising taxes on “the rich,” they stuck it to the middle class and doled out billions more in slush money to crony corporations. The Wall Street Journal called it the largest tax increase in 20 years in return for spending increases.
The Road to Financial Hell
Is Actually Paved with Bad Intentions
The melodrama followed standard operating procedure: “The sky is falling, the sky is falling, let’s vote yes now.” Former Congressman Ron Paul described it like this:
“The 154 page “fiscal cliff” bill was made available to senators just three minutes before the vote was taken on the legislation. No one can read 154 pages in three minutes, so it is safe to assume that the legislation was passed without being read.
“Then the House brought the lengthy and complicated bill to a vote just 22 hours after the text had been available, meaning a full reading of the legislation was not likely possible. This was a clear violation of the “three day rule” adopted by the 112th Congress, which in the name of transparency ordered the House to make legislation available to the public a full three days before a floor vote.”
As you can guess, this emergency bill was stuffed full of pork fat that benefits crony corporations and clogs the arteries of taxpaying Americans like you and me.
It’s Official: It’s Life, Love and Looting
The Cato Institute website discussed one in particular. Rum subsidies stuffed into the Fiscal Cliff deal help pay nearly all the production cost for Captain Morgan rum. If this sounds ridiculous – and it is ridiculous – my review of the documentation backs this up.
And in case you haven’t had occasion to see an ad for “Captain” lately, the irony of the brand’s slogan is beyond the pale – “To Life, Love, and Loot.” Emphasis on loot!
Didn’t Taxes Only Go Up For the “Rich”?
Of Course Not…
According to the Tax Policy Center taxes are going up on over 77% of U.S. households. But there’s more.
Nearly 80% of hardworking Middle Class families earning more than $50,000 will be shocked when they see their average taxes increase by $1,635.
Much of this comes from the increase in payroll taxes from Social Security withholding, and it’s already hurting many. The Washington Times reviewed public forums and found these cries of anguish:
“My boyfriend has had a lot of expenses and is feeling squeezed right now, and having his paycheck shrink really didn’t help.”
“Many of my friends didn’t realize it, either. Our payroll department didn’t do a good job of explaining the coming changes.”
“My paycheck just went down. So did my wife’s.”
“$86 a month is a lot. That would pay for… Groceries for a week, as someone said. More than what I pay for parking every month, after my employer’s contribution to that. A new computer after a year. A new quality pair of shoes … every month. Months of my copay for my hormones. A new thick coat (on sale or at discount place). It would pay for what I spend on my dogs every month… food, vitamins, treats.”
“Really, how am I ever supposed to pay off my student loans if my already small paycheck keeps getting smaller?”
According to the Washington Times, “the tax burden will rise more for someone making $30,000 a year (1.7 percent) than it does for someone earning $500,000 annually (1.3 percent).” The idea of soaking the rich was a political lie to convince more Americans that Washington is on “their side.”
Get Squeezed Even More…
On top of the above income losses, Middle Class families will be squeezed harder by Obamacare tax mandates: Americans for Tax Reform (ATR) exposes these veiled tax increases:
Obamacare Medical Device Tax: This is a new tax of 2.3 percent on medical device manufacturers. Like all corporate taxes, it will be passed on to the consumer. ATR uses orthodontics as an example and estimates that with braces costing $7,625, a working family will be squeezed an additional $175 to provide appropriate dental health for their children.
Obamacare Flexible Spending Account Cap: ATR estimates as many as 35 million working Americans use a pre-tax Flexible Spending Account (FSA) provided through an employer to pay for basic family medical needs. Previously, there was no cap or government intrusion on how much you could put away pre-tax for your health needs. Now, the Obama Administration intrudes on private health decisions and dictates that families are restricted to a $2,500 cap. ATR says the cap will take away $13 billion from Americans over the next ten years as families hit the cap and pay for medical care with after-tax money.
Obamacare “Haircut” to the Medical Itemized Deduction: Before Obamacare, you were allowed to deduct medical expenses that exceeded 7.5% of adjusted gross income (AGI). Starting January 1, 2013, Obamacare pushes the “finish line” farther away from American families by imposing a more burdensome threshold of 10% of AGI.
This stunt makes the deduction more difficult to claim, while casting a wider net to confiscate more money from Americans. In 2009, the IRS reported that 10 million families earning an average of $53,000 took advantage of this deduction. By slyly changing the rules, the typical family will get hit up for an additional $200 to $400 a year in taxes, according to ATR.
Despite putting their hands on more of Americans’ money, government overspending is the problem. The lack of political will to cut spending will most surely lead to new schemes to take away more of our money. Watch for future updates from me on this subject.