With their inability to be satisfied with only soaking nicotine addicts with 87 cents per pack of tax, the DemonRats want to tack on an additional $2.00 per pack. The end result should be obvious to anyone who understands real world market forces, something Dim-witted politicians pretend don’t exist. Smuggling of cigs from outside the PRC will become a booming business and the morons in Sacramento will receive zero dollars per pack.
Archive for the ‘TaxHikes’ Category
Posted by taxguru on April 16, 2015
Posted by taxguru on March 3, 2015
If only we had a system of government where there were checks and balances against an out of control monarch/dictator.
Posted in TaxHikes | Comments Off on Will anyone stop our King?
Posted by taxguru on September 23, 2014
From a Client:
Subject: Kerry, do you happen to know…
Kerry, at a recent Round Table one of our Members made the assertion that “the ACA is lowering the cost of care.” To which I retorted, “yes, but at the taxpayers’ expense.” To which he responded “the tax rates haven’t increased since 2008.”
It’s hard for me to believe that millions of Americans are getting basically a “free lunch – or heavily subsidized health plan (or even expanded Medicaid)” without more tax dollars going toward it. Figured you know these things. Is there something you can point me to that broadly covers how the tax structure (for those who are paying taxes) has changed since 2008 in general, and particularly since 2010, when the ACA went into effect. Many thanks in advance,
Your gut feeling was correct and the member was wrong.
The actual increase in taxes for ObamaCare is spread out over a number of ways.
As you can see on this handy recap of Federal tax rate brackets, there was a new 39.6% bracket added to individual income tax rates for 2013. From 2003 through 2012, the top rate was 35%.
On top of that, there was also a new 3.8% tax starting in 2013 on net investment income that was directly from the ObamaCare legislation. That tax, on Form 8960, actually cost you $5,806 for 2013.
Additionally, the maximum tax rate on long term capital gains has increased from 15% (2008-2012) to 20% (2013 & after). While some may look at that as just a five percent increase, it actually represents a 33.3% increase from the previous top rate.
There is an interesting article on states having to pay additional costs for ObamaCare:
Overall, the percentage of taxes being paid by the top earners in this country continues to increase every year. There are lots of articles on this, such as this one:
One aspect that is swept under the rug is the fact that a lot of the increased spending by the Federal government isn’t really being paid directly by anyone right now because it is being borrowed from the Chinese government. The fact that those loans, plus interest, will need to be repaid someday, is something our rulers in DC refuse to acknowledge as they keep adding trillions of dollars to the debt.
I hope this info is useful for you.
This is great! Thank you very much….now I just need to break it to him!
Posted by taxguru on December 27, 2013
Brokers take the credits given to studios for location filming and sell them to wealthy people and companies looking to shave their state tax bills. – Another example of unintended consequences when our rulers establish tax policies without thinking ahead as to how they will be dealt with in real life, as opposed to the Fairy Tale world they live in.
As city cycling grows, so does bike tax temptation – While people continue to be gunned down in the streets of Chicago, its rulers can’t resist thinking up more ways to take more money out of the private sector. Does this story remind anyone else of George Harrison’s timeless TaxMan song, especially this part?
If you drive a car, I’ll tax the street
If you try to sit, I’ll tax your seat
If you get too cold I’ll tax the heat
If you take a walk, I’ll tax your feet
Posted by taxguru on September 26, 2013
Obama on Obamacare: “We did raise taxes on some things.” – Some = just about everything.
Census: State and Local Income, Sales, Motor Fuel, Motor Vehicle, and Alcoholic Beverage Taxes Hit All-Time Highs in 2nd Quarter – Governments can’t control their spending addiction and they will use whatever means possible to steal that money from the private sector.
Obamacare Will Increase Avg. Individual-Market Insurance Premiums By 99% For Men, 62% For Women – And the morons who support ObamaCare still insist on calling it the Affordable Care Act.
The Obamacare Scams Are Already Starting – Not the least surprising since the entire ObamaCare legislation has been a humongous scam from the beginning.
Posted in TaxHikes | Comments Off on Stating the Extremely Obvious…
Posted by taxguru on May 1, 2013
Obamacare’s Tax Hike Train Wreck – Handy summary of some of the new taxes we are going to have to deal with, from Americans for Tax Reform.
Posted by taxguru on January 10, 2013
Right up there with “Sun to rise from the East” for news value.
They can’t help it. It’s in the DemonRat DNA to always raise taxes and spend more of other people’s money.
Posted in TaxHikes | Comments Off on Least surprising headline of the century…
Posted by taxguru on January 1, 2013
Washington Celebrates Solving Totally Unnecessary Crisis They Created – And our retarded rulers guaranteed plenty more excitement for 2013, by passing short-term patches that will give us more of these self-created fiscal cliffs. Modern day Keystone Kops are in charge in DC.
Putting America’s Tax Hike In Perspective – Very illustrative bar graph with the $62 Billion in new annual taxes compared to the $1.089 Trillion budget deficit. Still, spending cuts are not allowed to be discussed.
Fiscal Cliff Deal: $1 in Spending Cuts for Every $41 in Tax Increases – Spending by our rulers in DC is too sacred to ever consider cutting.
Details of tentative deal that would avert fiscal crisis – At least our imperial rulers in DC have finally agreed on the proper definition of the Evil Rich who need to be punished; $400,000 of income for Singles and $450,000 for Married Couples. Welcome back to Marriage Penalty Tax Planning. Two singles living together don’t get hit until at total of $800,000 in income vs only $450,000 if they were married.
Liberalism’s $400,000 Problem -Lefties upset over the higher income limit to define the Evil Rich to be persecuted.
Posted by taxguru on December 22, 2012
CCH has released its 2013 Fiscal Cliff Estimator, where you can see what the Federal income taxes will be under three of the options being discussed. I can’t vouch for the precise accuracy of all the calculations. However, based on all of the footnotes, it does appear that they have put some time and effort into these calculators.
I’m not sure that I would use this for actual tax planing purposes, but it does help give a flavor for how much money is at stake as our rulers in DC enjoy their taxpayer funded vacations.
For example, I entered MFJ with $150,000 of Taxable Income, $10,000 of LTCG and $500 of Dividends and it gave the following results for total Federal income tax.
Current 2012 Tax Rates: $31,354.00
Full Extension of Bush-Era Tax Cuts (Republican Plan): $31,040.50
Presidential and Senate Democratic Proposal: $29,465.50
Expiration of the Bush-Era Tax Cuts (If Congress Does Not Act): $36,391.50
Posted by taxguru on December 17, 2012
This year, I intentionally scheduled almost all of my annual 40 hours of CPE for as late in the year as possible, with the hope that some settlement of the open tax issues would be wrapped up by now. Unfortunately, as we know all too well, nothing has been done by our incompetent rulers in DC and we still have a ton of uncertainty as to what the rules will be for 2012, 2013 and onward.
Once again, I am using CPE Link for most of my live instruction CPE. I just finished the first four hour section of the 2012 Tax Update by Vern Hoven and he had to hedge a lot, with warnings that several tax provisions that have technically expired as of 12/31/11 may be extended retroactively for 2012 by the bozos in DC, hopefully before the end of the upcoming Tax Season.
As we went through the manual and slides, I found a few of them that I wanted to share here with my readers.
IRS Audit Exposure
This first one is from the IRS’s official report of their examination coverage. It illustrates that the higher your AGI is, not only will you be hit with higher taxes and lose several deductions and credits, but the bulls-eye on your back for IRS harassment will grow much larger. Steps to keep your AGI down, such as working with a C corp, make all the more sense.
|From Tax Info|
New ObamaCare Taxes
We covered some of the numerous new taxes created by ObamaCare that we will soon be dealing with. One of them is a new Hospital Insurance (HI) tax on the wages and self employment income of the evil rich and is summarized nicely in this table.
|From Tax Info|