In George Orwell’s novel Nineteen Eighty-Four, the overpowered subjects of the state are indoctrinated to believe the mantra “War Is Peace, Slavery Is Freedom, Ignorance Is Strength.” In our time, it’s “Tax Hikes Are Tax Relief.”
So we didn’t go over the fiscal cliff and instead got a deal that delivers no cuts in government spending, raises taxes on “the rich” (the definition of which consistently changes), expands the size and role of government, keeps the red ink flowing at record levels, and provides disincentives to economic growth and job creation — and, for good measure, raises taxes on nearly everyone who isn’t rich.
The bill, absurdly entitled the American Tax Payer Relief Act, is a tax-hiking measure that transfers money and power from the private sector to the increasing dysfunctional government sector.
Adhering to President Obama’s redistributionist agenda, the top personal income tax rate increases from 35 percent to 39.6 percent for taxpayers with more than $400,000 in taxable yearly income or joint filers earning more than $450,000.
Including the changes in tax deductions, and the top rate effectively rises from 35 percent to an estimated 41 percent.
Similarly, the estate tax on everything over $5 million jumps from 35 percent to 40 percent (the heirs of “the rich” might consider that a good deal, given that Mr. Obama wanted a 10-point hike in the estate tax, from 35 percent to 45 percent).
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Ralph R. Reiland (photo)