I finally was able to speak with our accountant this afternoon to find out how much money we owe the IRS. Let’s just say I wasn’t jumping for joy, especially when he reminded me “Your taxes are going up next year.” He went on to say that nobody, Republican or Democrat, is talking about it. I said that’s not true, plenty of people are talking about it, it’s just not getting much air time from the media.
Just this afternoon, James Pethokoukis published this alarming chart, showing just how hideous the tax hikes are going to be – they will amount to a whopping 3.5% of GDP. That’s on top of current taxes. This could send us into a depression.
As noted at Business Insider, Mitt Romney and others have been talking about the looming tax explosion.
This weekend, NYT’s David Leonhardt coined the term ‘Taxmageddon’ to describe the huge tax hikes that are coming at the end of 2012 if Congress does nothing.
It sounds like that term is going to stick. It’s being used on a Mitt Romney call with reporters today.
I would only disagree with the claim that David Leonhardt coined the term ‘Taxmageddon’. I first saw it at the Washington Post (of all places) way back in February, and The Heritage Foundation sounded the alarm in early April. In case you missed it, these tax increases won’t be reserved for the top 1%. We’re all going to suffer.
On Dec. 31, the George W. Bush-era tax cuts are scheduled to expire, raising rates on investment income, estates and gifts, and earnings at all levels. Overnight, the marriage penalty for joint filers will spring back to life, the value of the child credit will drop from $1,000 to $500, and the rate everyone pays on the first $8,700 of wages will jump from 10 percent to 15 percent.
The Social Security payroll tax will pop back up to 6.2 percent from 4.2 percent under the deal approved Friday by Congress. And new Medicare taxes enacted as part of President Obama’s health-care initiative will for the first time strike high-income households.
The potential shock to the nation’s pocketbook is so enormous, congressional aides have dubbed it “Taxmageddon.” Some economists say it could push the fragile U.S. economy back into recession…
Oh, and don’t forget about all of the new Obamacare taxes that will kick in if the law isn’t tossed out by the Supreme Court.
You can run but you cannot hide from the Tax Blob. This would be sort of funny if it weren’t so frightening.