Get Ready for the New Investment Tax

wsj ^ | 6/29/12 | LAURA SAUNDERS

[ColdOne]

It really is happening.

Until this week, investors were waiting to see what the Supreme Court would do about the 3.8 percentage-point surtax on investment income, part of President Obama's health-care overhaul. The Internal Revenue Service hasn't yet released guidance on the new tax.

So when the court affirmed the law on Thursday, investors—and tax advisers—started scrambling.

[Grampa Dave]

[Perdogg]

Once this tax is assessed, people could go back to SCROTUS to claim that neither the IRS nor the executive branch has the constitutional authority to assess a tax that is specified by Congress.

[Perdogg]

errata: ...that is not specified by Congress.

[upchuck]

The new tax summed up in two sentences:

The new tax, which Congress passed in 2010, affects the net investment income of most joint filers with adjusted gross income of more than $250,000 ($200,000 for single filers). Starting on Jan. 1, 2013, the tax rates on long-term capital gains and dividends for these earners will jump from their current historic low of 15% to 18.8%, assuming Congress extends the current law.

[SueRae]

I am actually hoping for a layoff this year. I will take my investment chips off the table and go dark. I’ve had it.

SueRae Galt

[RFEngineer]

Now Obama will agree to simplify the tax code and go to a pure consumption tax.

When paired with his new innovative lack-of-consumption tax, which now appears to have legal precedent from yesterdays Supreme Court ruling, we can have this deficit knocked out in no time.

[mrsmith]

Another punishment on those who hire American workers, Gee, do they think anyone hasn't gotten the message yet?

"Manufacture in China!" _{A message from the US government!}

[TurboZamboni]

By allowing the 2003 tax cuts to retire, President Obama will be increasing the bottom rate from 10% to 15% ...
more math here:
Raising the 10% bracket to 15% represents what percentage of increase? Hint: The correct answer is NOT 5%.

Raising the 35% bracket to 39% represents what percentage of increase? Hint: The correct answer is NOT 4%.

Extra credit question: People in which tax bracket will see the largest percentage of increase in their taxes?

Extra extra credit question: People in which tax bracket will see the smallest percentage of increase in their taxes?

To those moving from the 35% to the 39% tax bracket...that’s roughly an 11% increase in taxes.
To those moving from the 10% bracket to 15%, their taxes will be increased by a whopping 50%.

So the low-income people get their taxes raised even more when seen as a percentage. And the rich folks lose a higher magnitude of money, but the percentage compared to what they already make is lower.

[Individual Rights in NJ]

That would only work in a sane world where words mean something, and rule of law means something and procedure means something.

Unfortunately we don’t live in a such a world, and likely never will in our lifetimes. We live in a world where rules only matter for peons like us, but no one else. Words mean something only so much as it restricts enslaves peons. Words mean nothing to the powerful.

It’s really a thugocracy we live in, regardless of party.

If THEY break rules, and we get mad and threaten them with resources... we are just then beaten up, arrested and thrown in jail or probably charged with some kind of BS domestic terror charge.

When WE break rules, and say it doesn’t matter, they act as if we should have known better, and if you don’t comply they will eventually put a gun to you and force you. Send the FBI, cops, whoever it may be to finally break your civil disobiedience-— the only thing they rely on is the gun.

Which is why we live in a thugocracy. If the only thing that allows the ruling class to prevent their displacement is their gun authority, and they are not the “noble ruler” (which trust me America does not have but one), then we see it is rule by brutal force alone.

WHY DO WE CONCEDE THAT?-— why does the public agree that our rulers can use guns to prevent them from being displaced for breaking law, but we ourselves cannot use guns to prove to our rules that there are consequences for their actions of breaking law-— LIKE THEY DO TO US EVERY DAY OF OUR EXISTENCE!

Trust me.... nothing will change at all, until this dynamic is broken somehow.

[Chuzzlewit]

Orwell envisioned all of this.. ..words mean nothing, and are changed at whim by the government.

bad = good

affordable healthcare = unaffordable

hey he said he’d do it.. and it’s done.. shame on those who voted for him...

[RFEngineer]

Yet the government will collect less revenue....

[RFEngineer]

“Orwell envisioned all of this.. ..words mean nothing, and are changed at whim by the government.”

That’s called “smart” government.