Skip to comments.Shocking News: Dems Want New “Revenues” (Why Is This Shocking?)
Posted on 11/17/2013 7:15:05 AM PST by Kaslin
It took a government shutdown, but after four years the Democrats in the U.S. Senate (led by the Undertaker) finally agreed to an established process that has gone on for ages: sitting down with the House of Representatives and hashing out a budget. And in another bit of shocking news, they are demanding new revenues (they never say taxes) to come to a compromise.
You may have heard that the feckless Democrats in the Senate have not passed a budget for three years. They standardized a rarely used way of operating a government continuing resolution or the new in vogue term: a CR. They only did pass a budget this past year because of a House Republican law that was passed that said No budget, no pay. The Undertaker and his crew said we can spend recklessly and be irresponsible, but taking away our paychecks is just downright uncivil. But then the Undertaker told his budget chair, Patty Murray (D-WA) that she could not meet with those scoundrels from the House who actually want to operate the government on a budget and maybe trim that nasty overspending.
So while I was working on year-end tax planning for my clients, I came upon the multitude of tax increases that go into effect this year to cover the cost of Obamacare and the expanding federal government.
Here are a few of the more important changes that will occur for this year:
There is some special depreciation that is scheduled to expire in 2014. It does not look at this time like it will be renewed. There is a 50% bonus depreciation on most new equipment and software. You can write off up to the first $500,000 of acquisitions of fixed assets. Also, there is a special 15-year depreciation for leasehold improvements that usually has to be depreciated over 39 years. Not renewing effectively raises tax rates especially on small businesses.
A new Medicare tax begins in 2013 of .9% for wages over $200,000; $250,000 for couples.
A new surtax of 3.8% exists for the lesser of your investment income (dividends, capital gains) or adjusted gross income over $200,000; $250,000 for couples.
A new tax rate of 39.6% exists on taxable income above $400,000 for individuals; $450,000 for couples.
The tax rate on dividends and capital gains goes from 15% to 20% for individual taxpayers with income above $400,000; $450,000 for couples.
Personal exemptions again are being phased out. The phasing out begins at $250,000 for individuals; $300,000 for couples.
Once again itemized deductions are being phased out for income over $250,000 for individuals; $300,000 for couples.
The stated top tax rate of 39.6% is obviously very misleading. Because of the surtaxes and phase out of exemptions and itemized deductions, taxpayers will be facing federal tax rates of over 50%.
This is not a comprehensive list of all the changes because that would either make your eyes roll to the back of your head or give you severe nausea.
This does not include the hidden taxes that are part of Obamacare that will just be passed through to you by the various industries that were targeted by the health care law. You probably know well about the tax on medical devices, but there are also new taxes on prescription drugs and health insurance policies. You will never see a line item on your bill for these taxes because they will just be hidden in your increased costs.
Probably the most fascinating aspect of the demand for new revenues (if there can ever be a fascinating aspect of leftists demanding new taxes) is that they have not even waited to see what the effects are of all these new taxes that are just coming on line. If ever there were a telling moment about what left-wing Democrats are all about, this it is. Dont wait until you see the actual amount of taxes you collect from all these new rates and dont wait to see the impact of the new taxes on the economy just plow ahead asking for new taxes to be piled onto the heap. It might be that they forgot about all these taxes because they voted them in three years ago, but did not want people to see them until after the 2012 election.
Fortunately the House Republicans have their smartest, Paul Ryan (R-WI), going up against the Dems on the conference committee. They also have a bulldog from the Senate Jeff Sessions (R- AL). And they also have the sequester as a hammer against the Dems. On the other hand because the entire Senate Budget Committee is included bringing the membership to 29, Bernie Sanders (D-VT), who is a Socialist, will be at the table. At least Mr. Sanders is honest about what his political angle.
All in all, the negotiations should be a hoot since they start with budgets that only have a difference of about $1 trillion. But one thing we know for sure: new revenues will be off the table for Republicans and should be for the Democrats too. Sorry, we cant help being wishful thinkers.
That usually happens when you spend to much
My granddad used to have a nice saying for this one: wish in one hand, crap in the other.
Bring back businesses to America.
I’m completely series.
America is giving China the future. Stop buying everything from China.
Bring back manufacturing to America.
Too many Americans still have some money left in their pockets. The politicians want all of it. Stick ‘em up!
Making the red side match the black side is boring and for squares. Just give us your money.
Sooner or later they will run out of other people’s money.
The damned Laffer curve should be outlawed.
It is not what you steal, ... er ... “tax” ... It is what you spend. STOP SPENDING!
Based upon the above and given that the employed population is at its lowest percentage in decades, is there any question that the Democrat Party is aiming to make the dependent class its permanent voting majority. The increased revenues desired by the Democrats is aimed towards expanded entitlements, not infrastructure or defense (based upon 5 decades of experience!) Obamacare is being daily demonstrated to be a money sink incapable of self-sustaining and thus should be considered as another entitlement program!
When you look at our current economic malaise through this viewpoint, it looks like a purposeful plan. Can you say the ClowardPiven strategy? Thanks Glen Beck for your publicizing this over the years!
What's the incentive...unions,EPA,OSHA,DOL,IRS,Taxes ??? Not too many reasons to support US manufacturing.
Especially if you do not have the money to pay for unnecessary items
Then America is over.
We have crossed the rubicon. America now is number two in global exporting.
This happened very quickly, and the trend is strongly against America now.
China is rapidly building up a global military, and has approximately 5 TIMES AS MANY PEOPLE as America.
China does not trade the same way America does. China acquires... Manufactures and sells. All of it, just done by Chinese workers.
So what we are doing is giving China everything.
China now is leading. And rapidly gaining.
I know we haven’t thought this out, but the future is very, very dark for America without jobs.
America needs to return American factories.
You should appreciate this email I rec’d this morning;)
****Birth of a New Tradition
As the holidays approach, the giant Asian factories are kicking into high gear to provide Americans with monstrous piles of cheaply produced goods — merchandise that has been produced at the expense of American labor.
This year will be different. This year Americans will give the gift of genuine concern for other Americans. There is no longer an excuse that, at gift giving time, nothing can be found that is produced by American hands. Oh.... Yes there is! It is time to think outside the box, people. Who says a gift needs to fit in a shirt box, wrapped in Chinese produced wrapping paper?
Everyone — yes EVERYONE gets their hair cut. How about gift certificates from your local American hair salon or barber?
Gym membership? It’s appropriate for all ages who are thinking about some health improvement.
Who wouldn’t appreciate getting their car detailed? Small, American owned detail shops and car washes would love to sell you a gift certificate or a book of gift certificates.
Are you one of those extravagant givers who think nothing of plunking down the Benjamins on a Chinese-made flat-screen TV? Perhaps that grateful gift receiver would like his driveway sealed, or lawn mowed for the summer, or driveway plowed all winter, or games at the local golf course.
There are a gazillion owner-run restaurants — all offering gift certificates. And, if your intended isn’t the fancy eatery sort, what about a half dozen breakfasts at the local breakfast joint.
Remember, folks this isn’t about big National chains — this is about supporting your home town Americans with their financial lives on the line to keep their doors open.
How many people couldn’t use an oil change for their car, truck or motorcycle, done at a shop run by the American working guy?
Thinking about a heartfelt gift for mom? Mom would LOVE the services of a local cleaning lady for a day.
My computer could use a tune-up, and I KNOW I can find some young guy who is struggling to get his repair business up and running.
OK, you were looking for something more personal. Local crafts people spin their own wool and knit them into scarves. They make jewelry, and pottery and beautiful wooden boxes.
Plan your holiday outings at local, owner operated restaurants and leave your server a nice tip.
And, how about going out to see a play or ballet at your hometown theatre. Musicians need love too, so find a venue showcasing local bands.
Honestly people, do you REALLY need to buy another ten thousand Chinese lights for the house? When you buy a five dollar string of light, about fifty cents stays in the community.
If you have those kinds of bucks to burn, leave the mailman, trash guy or babysitter a nice BIG tip.
You see, Christmas is no longer about draining American pockets so that China can build another glittering city. Christmas is now about caring about US (We the People), encouraging American small businesses to keep plugging away to follow their dreams. And, when we care about other Americans, we care about our communities, and the benefits come back to us in ways we could not imagine.
THIS is the new American Christmas tradition!!
Please pass this around. We can make a difference. Can’t we?
“If you lack the courage to start, you have already finished.”
Sounds great in theory and we will always have some level of business activity because of population numbers, but as a businessman why in the world would I invest in the USA. The current trend is down and is only going to get worse.
The govt is taking over healthcare.
Taxes keep going up and govt regulations are becoming unbearable.
The workforce is not as highly motivated as other areas of the world.
Political corruption is as bad as a lot of banana republics.
The whole idea that business would come back to the USA denies the motivating forces of profit and markets.
You can not tax the unemployed if they don’t earn any money. However unemployment checks are taxable and have to be declared on the 1040 forms
Unions are the reason so my manufacturers moved overseas
Just saying, eventually the Chinese will control it, if it is being sent to China.
America made a great amount of money, cooperating with China.
But that has now changed. China is now leading America is world trade.
That is a (significant) change.
Bring back American businesses.