Thanks to the Heritage Foundation’s report on Taxmageddon, taxpayers became aware of the $500 billion of new taxes the government is expected to extract from the economy starting the first of the year. What they didn’t learn is how devious and pernicious some of those taxes are because they are buried so deeply in the ObamaCare monstrosity, otherwise known perversely as the Patient Protection and Affordable Care Act. The Orwellian title is exactly the opposite: Patients won’t be protected and medical care will become less affordable.
And taxpayers will pay more.
Taxmageddon’s total extraction will be drawn from the arm of the taxpayer using several different blood collection needles, to wit:
• The expiration of the so-called “Bush tax cuts” enacted in 2001 and 2003 and extended to December 31, 2012 will draw $165 billion out of the economy
• The renewal of the regular payroll tax, back to 6.2% from the temporary 4.2% extended to December, will draw another $125 billion out of the economy
• The expiration of the Alternative Minimum Tax (AMT) “patch” designed to protect middle-class taxpayers from this “wealthy-only” tax will now apply to them as well and will extract another $119 billion
• The expiration of numerous other tax cuts, tax cut extenders, the reimposition of the “death tax” and the elimination of 100% “expensing” for business investment will withdraw an additional $51 billion, and
• The imposition of five of the thirteen new taxes imposed by Obamacare effective January 1, 2013 will be responsible for the balance.
Grand total: $494 billion, or almost four percent of the country’s gross domestic product to be extracted and transferred to the federal government.
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Photo: President Barack Obama speaks in the East Room of the White House in Washington, June 28, 2012, after the Supreme Court ruled on his healthcare legislation: AP Images