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.
We went through this at the end of 2010, too. I had actually lost a bet: since the Democrats never even tried to push through the tax cut extensions for everyone but the top producers, as they had promised to do, when they had huge majorities, I bet a guy $100 that they were going to let all of the 2001/2003 tax cuts expire. Then, after the elections — which shows you just how dumb the Democrats really are — we got everything extended, plus the Social Security rate cut.
All bills for raising revenue must originate in the House, and I think we can count on the House of Representatives passing tax cut extension legislation before the elections, and dare the Democrats in the Senate to block it.
Of course, the real key is to win the White House and take control of the Senate; then it all gets done, much more easily.
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Better start racking up those deductions on your business (any way you can!)
We ended up owing a lot more this year because, in the interest of saving money, we drove our car a lot less. Ergo, our mileage deduction was way lower. What we saved in gas, we had to pay in taxes. Dumb!
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The Tax Man will get you, comin or goin! And next year they’re
holding you upside down by the ankles and start to shaken!
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The begining of the Obama slave state! If you owe next year, the IRS will gladly put you on a repayment plan while you fall further and further behind on the current year’s taxes!
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