Skip to comments.Housing and the Three Waves of the Tax Tsunami – The Biggest Increase in Taxes in American History
Posted on 09/23/2012 3:42:22 PM PDT by whitedog57
There has been numerous headwinds to a housing (and commercial real estate) recovery. One is doggedly slow economic growth. Another is doggedly high unemployment rates. But there is another headwind that is not talked about for housing and real estate in general: taxmageddon or the upcoming single largest tax increase in American history.
Simply put, housing consumption will be reduced in Federal taxes increase. But this is occurring just as housing is beginning to stabilize in many parts of the country.
Americans for Tax Reform provide a nice summary of the tax tsunami that is about to hit (unless Congress and the Administration stop it). And the tsunami will be devastating.
First Wave of Tax Tsunami: Expiration of 2001 and 2003 Tax Relief
In 2001 and 2003, the GOP Congress enacted several tax cuts for small business owners, families, and investors (later re-upped by President Obama and Democrat Congress in 2010). The following tax hikes will occur on January 1, 2013:
Personal income tax rates will rise on January 1, 2013. The top income tax rate will rise from 35 to 39.6 percent . The lowest rate will rise from 10 to 15 percent.
Second Wave of Tax Tsunami: Obamacare Tax Hikes
Third Wave of Tax Tsunami: The Alternative Minimum Tax and Employer Tax Hikes
Between the expiration of the Bush tax cuts and the implementation of Obamacare taxes, American households will have LESS to spend on consumption and savings, and that includes housing. We can safely say that housing consumption will not increase when this tsunami hits.
Perhaps this is why The Fed decided to go on a MBS buying binge known as QE3. We have a fiscal disaster looming with massive tax increases so The Fed feels it has to compensate by buying billions of agency MBS.
(Excerpt) Read more at confoundedinterest.wordpress.com ...
They are all bastards, both sides, do nothing, exempt themselves from any un pleasant news... bastards
And we have some nice armed drones to take care of any of you peasants who object to that idea.
“very scary, Congress just left town, so were all in for a major tax increase.
They are all bastards, both sides, do nothing, exempt themselves from any un pleasant news... bastards”
Actually, rather than have Congress (with its Democrat controlled Senate) revise the tax laws now or, worse yet, have the lame duck Congress revise the tax laws in December, I’d much rather have the new Congress revise the law when they convene in January. If things go right we’ll have a even more conservative House of Representatives, a Republican led Senate and a Republican president. If things work out REALLY well, we could even have the Senate Republican caucus led or at least heavily influenced by the reinforced conservative Republican Senators—that would be a dream come true.
The tax law revisions can be made effective retroactively to January 1st (there’s plenty of precedence for that) and they can be structured to actually promote both short-term and long-term growth and prosperity. And if the Republican Congressional leadership is smart, they’ve include the tax changes in some sort of Omnibus Budget Reconciliation Bill so they can include some really nice budget cuts (to the Democrats’ favorite budget items) and not have to face a filibuster by the minority, anti-American, Senate democrats.
a 50% increase in taxes for the lowest earners ... and the folks on the right aren’t hanging this around 0bama’s neck??
just a scam.
both ‘parties’ are paying for the same team ... against the people of the country... to receive/ win money and power
I'm guessing Boehner will cave ( unless Rats lose the Senate), so it's probably not going to happen.