Get Out Your Wallets

The first paychecks for those of us working for a living will begin arriving any day now. With those checks will come changes to the "withholding" column of your detailed paycheck report. Sure, most of the increases apply to those making over $250,000 per year, but folks those are the people, by and large, that are running small businesses throughout this land. That fact does not bode well for increased employment, not at all.

In addition, these "soak the rich" increases were fought for, tooth and nail, because they would help to balance the awful, one-sided, overspending of tax receipts by the federal government. HA! Do the math; this won't even begin to right the lopsided, deficit-laden expenditures by this bunch in D.C.

We're in trouble and our esteemed President seems dead set on continuing down the same road to eventual financial ruin. Look at Greece, look at Spain and see what type of malaise is in store for our own United States. It's coming...maybe not tomorrow, this year or next, but it is really coming soon to send all of us into financial Armageddon.

The Heritage Foundation's "Morning Bell" report this morning (1/8/13) detailed 13 tax increases that took effect on January first of this new near. Here they are in brief:

13 Tax Increases That Started January 1, 2013 

Tax increases in the fiscal cliff deal:

1. Payroll tax: increase in the Social Security portion of the payroll tax from 4.2 percent to 6.2 percent for workers. This hits all Americans earning a paycheck—not just the “wealthy.” For example, The Wall Street Journal calculated that the “typical U.S. family earning $50,000 a year” will lose “an annual income boost of $1,000.”

2. Top marginal tax rate: increase from 35 percent to 39.6 percent for taxable incomes over $450,000 ($400,000 for single filers).

3. Phase out of personal exemptions for adjusted gross income (AGI) over $300,000 ($250,000 for single filers).

4. Phase down of itemized deductions for AGI over $300,000 ($250,000 for single filers).

5. Tax rates on investment: increase in the rate on dividends and capital gains from 15 percent to 20 percent for taxable incomes over $450,000 ($400,000 for single filers).

6. Death tax: increase in the rate (on estates larger than $5 million) from 35 percent to 40 percent.

7. Taxes on business investment: expiration of full expensing—the immediate deduction of capital purchases by businesses.

Obamacare tax increases that took effect:

8. Another investment tax increase: 3.8 percent surtax on investment income for taxpayers with taxable income exceeding $250,000 ($200,000 for singles).

9. Another payroll tax hike: 0.9 percent increase in the Hospital Insurance portion of the payroll tax for incomes over $250,000 ($200,000 for single filers).

10. Medical device tax: 2.3 percent excise tax paid by medical device manufacturers and importers on all their sales.

11. Reducing the income tax deduction for individuals’ medical expenses.

12. Elimination of the corporate income tax deduction for expenses related to the Medicare Part D subsidy.

13. Limitation of the corporate income tax deduction for compensation that health insurance companies pay to their executives.
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We're in trouble, my friends. Hang on to your hats; we're in for a wild and terrible ride.