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  • Morning Bell: Beware the Taxmageddon

    Brace yourself. In a mere 271 days, you and your fellow Americans will be hit with a tax hike the likes of which this country has never seen. The Washington Post aptly called the unprecedented $494 billion tax hike “Taxmageddon,” and Federal Reserve Chairman Ben Bernanke described it as a “massive fiscal cliff.” Whatever your preferred imagery, it’s a really big deal.

    Despite all the warnings, President Barack Obama has kept his silence while Congress has made no apparent effort to prevent this impending calamity to families and the economy. The prevailing wisdom is that “something will get done” in a lame duck session of Congress after the election. But why wait? And why after the election?

    Here’s why you should be worried. For starters, remember that this is the same President who in 2009 promised, “if your family earns less than $250,000 a year, you will not see your taxes increased a single dime.” That’s a vow he’s broken, and in 2013, things are going to get even worse if this year Obama doesn’t lead and Congress doesn’t act. Katy, bar the door, there’s big trouble in store.

    The tax man won’t draw his billions from the American taxpayer with just one big needle — the massive tax increase will be the product of tax policies expiring in seven different categories, on top of five new Obamacare tax hikes taking effect. In a new paper, Taxmageddon: Massive Tax Increase Coming in 2013, Heritage’s Curtis Dubay details the tax hikes that will occur if President Obama and Congress do not act before the end of the year:

    Almost 34 percent of the tax increase from Taxmageddon comes from the expiration of the 2001 and 2003 Bush tax cuts. These cuts are best known for reducing marginal income tax rates, but they also reduced the marriage penalty, increased the Child Tax Credit and the adoption credit, and increased tax breaks for education costs and dependent care costs.

    Another 25 percent of Taxmageddon comes from the expiration of the once-temporary payroll tax cut. The expiration of the patch on the Alternative Minimum Tax (AMT) — which would raise the income threshold over which families qualify for the AMT to prevent middle-income families from paying this tax that is only supposed to impact “the rich” — accounts for 24 percent of the total potential 2013 tax increase.

    The balance of the tax hikes comes in part from new taxes under Obamacare, the expiration of tax cuts in the 2009 stimulus, the expiration of a group of policies known as “tax extenders,” changes in the current policy on the death tax (in 2013, it will rise from 35 percent today to 55 percent and the exemption will fall from $5 million to $3.5 million), and the expiration of businesses’ ability to fully expense new capital investments.

    This $494 billion in higher taxes will certainly hit families and business hard in 2013, but their effects are already being felt. Dubay explains that Americans must plan for tomorrow, and the tremendous uncertainty about tax policy makes the future much more uncertain, thus discouraging the investments and other actions needed to spur the economy to create jobs faster today.

    So while the President and Congress appear content to put off ’til the 11th hour what they can and should do today, those who will have to pay the higher tax burden are waiting to see what the future holds. Dubay says that this is “slowing job creation and stopping many of the millions of unemployed Americans from going back to work.”

    Early on in his presidency, Barack Obama said he knew about the impact of taxes. Back in 2009, on a visit to Elkhart, Indiana, Obama emphatically stated his belief that raising taxes in a recession is a bad idea. Though America is not in recession today, it still struggles with very high unemployment, and so the President’s logic applies with equal force — raising taxes is a drag on job creation. Unfortunately, in a speech in Washington on Tuesday, President Obama unabashedly revealed that preventing tax hikes is not his priority. In fact, he wants to see even more taxes imposed on the American people and on job creators all in the name of “fairness” — may of which are in his budget. That’s a political doctrine, not an economic policy, and it’s a proven recipe for economic disaster.

    If the President doesn’t work with Congress to take action soon to prevent a 2013 Taxmageddon, his brand of “fairness” will result in the biggest tax increase in the nation’s history. And that storm will wreak even more damage on America’s already fragile economy. Congress shouldn’t wait for Obama to take the lead in preventing a policy nightmare he might actually favor. Instead, it should act now to prevent these tax hikes from crushing America’s families and our economy.

    Quick Hits:

    Posted in Economics [slideshow_deploy]

    91 Responses to Morning Bell: Beware the Taxmageddon

    1. Bette says:

      Why is this man not being stopped by Congress, it is evident he does not have the best interest of our country or us at heart. There should be a no confidence vote and he and Holder should be removed from office ASAP along with his czars. I have never been as freightened as I am today for our country our children and our survival.

      • Jane says:

        Why are you being bought by Koch Industries? Someday you might all be very proud that you thwarted evil socialism in America but then your granddaughter will die of brain cancer and your elderly mother will be living in a box under a bridge with no healthcare either. And you? Oh you'll be coughing up blood from breathing in lovely formaldehyde, but no worries, Uncle Chuck and Dave says it's NOT a carcinogen. After all, anything put into the air or airwaves by Koch should be good for you, right?

        • Jake says:

          Nice one Jane, you're a good robot. You can't defend the president's actions so step one is to change the subject, (note the Koch reference), Set two is to tell them how horrible their life will be, (note the grand-daughter will get cancer and the coughing-up blood comment). Step three, put them down, (note the demeaning tone as you finish your post. Good robot. Try thinking for yourself for a change, or you could just start step one on me too.

        • Gary Cave says:

          Jane doesn't understand or care what is REALLY at stake here. Obama uses "health care" as an excuse to trample on our most sacred documents, the U.S. Constitution and the Declaration of Independence! Contrary to the opinions of ill informed people like her, those are time HONORED documents, NOT obsolete documents! The latter is what the liberals teach our kids in the schools and universities! It's all 1/2 truths and outright lies!! NOBODY is being bought by any business. The whole idea is pure Socialist propaganda. You need to get an independent UNbiased source of information so you can make intelligent statements. When you talk about restrictions required to prevent your doomsday poison scenario, is it REALLY worth living under the restrictive loss of freedoms (totalitarianism) required to enforce such an evil society? Are we going to sell out our freedom and liberty for safety? I shouldn't have to quote Patrick Henry on that issue, but I am familiar with another saying: "Better dead than Red!"

        • dodger says:

          Jane, is your last name, by any chance, Fonda? Whatever it is, you need to grow up and try to understand that it is NOT the job of the government, financed by the taxpayers, to take care of every aspect of your life. YOU need to obtain health insurance for yourself and your family. It is NOT up to me or any other citizen, other than YOU, to pay for the things you need through taxation. GROW UP!

      • George Gallo says:

        Do you really need to be told why the congress is now a body of cowards? Read about how the Demmo convention was strong-armed in 2008 and imagine that those were days when the usurper did not have the power of the DOJ to cover his butt for any and all of the Chicago style persuasion taking place.

      • Ruby says:

        I agree with you completely

      • Arnold says:

        His intrest is not for the country but for the Group of people that are behind him. You should read some of the things that are being put out on the freedom sites. It will truely scare you. Its only getting started what the end result will be depends on this election coming up, if we have an election. If Obama gets back in office our way of life will be changed forever. God Bless America and protect us from our leaders.

      • C.Wallbrown says:

        because congress has NO balls to stand up to him!!!!!!!!!

      • Thomas says:

        This man is a Socialist and his agenda is to create a Socialist society. How better to do that than bankrupt the country and it's citizens then default on loans to Communist China. When they call in the loans, we can't pay, so they take over America. The line between Communism and Socialism is a fine one. Not much difference. The Zars live grand and the workers get the breadline. The only way we can protect ourselves is have a Republican dominated Senate and the House because the election will be minulated so he is reelected.

      • Ruckus_Tom says:

        The easy answer as to why he and Holder are not in jump suits already is – race. What mean ole white dude(tte) is going to start impeachment proceedings against America's first (FIRST !!!) black president? It'd have to be done by a Republican to boot. No "person of color" in congress is going to go against one of their own.

        Obama's going to win in November hands down. He'll demagogue healthcare, race, the mean old Republicans getting in his way on everything he's trying to do and the fawning press will provide him easy to remember phrases over and over again that any nitwit can understand (Obama wants everyone to have free healthcare, free education, free housing, free contraception, free ! free ! free !

        … and the masses will love him for all his attempts to make everything better and show up in droves to keep their guy in office.

        And if Republicans gain control of the Senate and keep it in the House, who cares? He's already ignoring the courts (e.g. drilling in the Gulf) and he's getting around the House by executive order and regulations by his appointed stooges (e.g. Czars, the EPA, the labor department, the education department, the energy department, etc.).

        A lot of people don't mind the idea of the US bringing in European style socialism. What we're going to get is a Hugo Chavez / Castro style dictatorship.

    2. glynnda says:

      I'm shocked! Shocked! that a democrat president would mislead us about raising taxes!!!!!
      If HE gets re-elected, and all we have to deal with is a tax hike, that won't be too bad….


      • There is no IF. Obama will be re-elected all through a system of mutual survival the DNC and the GOP have set up. The GOP will place in front of us a candidate that is below standards and expectations. To ensure his victory a 3rd candidate (the one the GOP should have selected but will not) will run in the race and siphon off the votes the GOP needs. I have no sympathy for the DNC or GOP, I see them both working hand in hand to destroy this country and doing it by wrapping themselves in our flag to look patriotic and American. With the recent bills that were signed, they (DNC and GOP) are building their legal walls to stomp out descent and resistance to keep themselves in power.

    3. toledofan says:

      Well, another glaring example of why Obama can't be trusted with managing the economy, the government or the military; he has no clue and instead of everything he touches turning to gold, it's more like everything tarnishes, discolors or just wilts away. The sad part of this is that the Democrats actually welcome the increase and view this as an opportunity to spend even more. Four more years of this administration would be devastaing to America and maybe actually push us over the edge towards socialism.

      • ThomNJ says:

        toledofan – I think that you are correct with the possibility there will be open revolt. Personally, I choose to decline the socialist route.

      • byebyeUSA says:

        toledofan – I disagree….I think he know's EXACTLY what he is doing, and he is doing it purposely.

    4. Randy Cross says:

      You get the Government and Taxes that you deserve…Good Luck !!

      • JohnLeeHooker says:

        you're right from one point of view BUT 47% of filers pay NO fed income tax yet they get to vote. Same w/ property tax at the local level. So, it's a tad more complicated due to the different economic "utilities" of social segments

    5. AD-RtR/OS! says:

      Complaining about it won't change his mind; this massive increase is what he wants.
      After all, we're (he's) not talking about your money, it's the government's money, and the Community-Organizer-in-Chief has decided that you don't need as much as the Government was allowing you to previously have.

      "The beatings will continue until morale improves!"

    6. Momcat says:

      Obama won't raise taxes by a dime, but the liar -in chief will raise taxes by many, many , many dimes!

    7. Ken Jarvis says:

      It is to bad that YOU just try to be clever –
      instead of trying to Help Make America Better.

      • Bob Ward says:

        Dear Lost Cause Ken:
        Banning YOU from commenting on HF would be a first right choice! Why don't you go pollute some liberal website or watch CNN instead?

      • Wayne Peterkin says:

        And you continue to be pitiful, Mr. Jarvis. You are one of the fools who believe that a huge, tyrannical federal government is what we all want and need. Perhaps you are incompetent to the point that you need the government controlling your life and spending your money, but most of us aren't. I told you the other day that advocating for someone else's taxes to be raised, but not your own, is morally bankrupt. I stand by that. Thank you for giving me the opportunity to remind you.

      • Jack W Estes says:

        It is clear that the scavenger hen house fox is in charge of more money than he could imagine before he slipped into the presidency – very dangerous. All he needs is a few more drone weasels like KJ to "egg" him on. By the way I liked the taxmageddon moniker, concise description of what US citizens can expect.

    8. Lloyd Scallan says:

      Every day it's another part of Obama's plan for destroying this nation. And every day nothing or no one is doing anything to stop him. Why! When will more American wake up and realize Obama has become this nation's first dictator. He will not stop and the people should realize any sane president would not do as much damage to he reelection chances unless he knows full well the November elections are already rigged.

      • kenneth says:

        Paranoia will destroy ya!!!

      • guest says:

        the foundry? should be the paranoid… do you people realize that it is the republican congress that loves to play chicken with tax hikes? it was under the republican pres that we got into this mess with those tax cuts and wars and spending like fools. The tax rate in this country is at it;s lowest point and this is the time we need more money coming in. Obama has been and will continue to be a great president for the next 4 years…4 MORE YEARS!!!!!! can't think of anything better, except maybe all the liars stop lying!!!

        • Bobbie says:

          Maybe if you accepted truth you wouldn't be the fool! there was no republican that proposed tax hikes and if the great American population was paying their share of taxes (49%? that aren't) the tax rate would be lower! Why is this the time we need more "tax revenue" coming in? Because government abuse is making more and more people less sufficient? c'mon guest? Why do you trust government filled with people you don't know that show an inability to be trusted, make rash judgments with impractical mandates, disrespect the peoples constitution with a whole lot of incompetence, wasting time with trillions of dollars, where anything communicated has to take extra time to reinterpret what was said under a cover standing, before your fellow American that stands accountable?
          Our independence is threatened because of the costs of unconstitutional government!

      • 1950red says:

        I will never understand why all of you are so hateful. If you would just open your mind to what this country needs we would be a better land. No one ever wants to pay for anything, but they want everything – roads fire departments,etc.

        • Tigger says:

          Why do you feel we need the federal government to have roads, fire departments and such? Shouldn't these be under local control so that if poor choices are made then it affects only those involved and they are in a better position to change them?

          If we only allowed the federal government only the power and authority it is supposed to be limited to by the Constitution we would be in much better shape.

    9. Whicket Williams says:

      When the parasite grows to large, the host dies. May The Lord preserve his people from evil.

    10. Don Huber says:

      With the way the national debt is going, and the nation facing the coming tax increases, I am wondering if the powers that be will never be satisfied until they have all our money.

    11. Charles Nystrom says:

      Let the Bush tax "cuts" expire. At least the low income '"tax credits" will die with them. Then the newly elected Congress can pass a tax law that excludes "gifts". There will be no new taxes from Obamacare as it will be struck down by the Supreme Court.

    12. Michael Laborde says:

      If Obama is reelected he will not renew the Bush era tax cuts because he wants to destroy capitalism and this country. Rush was right, Obama is purposely doing these things to make us a third world country and making us socialist.

    13. Dave Blanke says:

      I agree with everything that the author stated: that we must stop the astronomical tax increases coming next year. His assessment of Obama's policies are correct: 'ideological fairness' over economic recovery. However make no mistake; the country is still in a recession. It is not as deep as it was, but now it is crawling on its hands and knees. These tax increases will send the economy into the abyss.

    14. You need to know just how costly this govt is

    15. jrcowboy49 says:

      How is anything going to get done with the obstructionist Reid refusing to allow any House bills to reach the floor? Heritage and Republicans need to inform the American voters about this idiot and his Senate liberals stall agenda. And the total lack of leadership of Obummer! Get the message out strongly and often!

      • castnet55 says:

        Man you're right on the money about Reid and the senate. Nothing can get done as long as congress is devided. Reid won't allow anything he doesn't agree with.

    16. allen says:

      The Republicans Fault will be the cry and the gnashing of the teeth, foam coming from the mouth,eyes bugging out. It's all your fault for not letting this" Lying President " have another term that he got saddled with Bush problems, They miss the Fact that it was Harry and Nancy the Witch that caused all of this. However they will still line up to use the food cards and free baby sitting. while they take out massive loans to go to school, What a sham. he end result you will be called a Racist because the lieing Dummy is still a MARCIST.

    17. rmgdnnow says:

      I can't think of any program or action by Obama which has actually improved the U.S. economy or made the future look brighter for us, the citizens. We are losing ground both domestically and in status among the planet's countries. Increased taxation will not help the economy, indeed probably will harm the recovery.

    18. Curt Krehbiel says:

      "Congress shouldn't wait for Obama to take the lead in preventing a policy nightmare he might actually favor. Instead, it should act now to prevent these tax hikes from crushing America's families and our economy."

      Of course he would favor it. That is why he would veto any action congress might take to stop the hike.

      • AuntVick says:

        Hairy Roid the Senate void, will not allow anything the house does to reach the whitehouse.

    19. ThomNJ says:

      Don't forget the medical device taxes that have already gone into effect because of obamacare and then there is the 3.8% sales tax on home sales after 1 Janaury 2013 if obamacare is not repealed.

    20. KC-NM says:

      I bet the odds that Obama will come up with something in October so that he looks good prior to the November elections. It is all political – Washington does not really care about Americans but does care about themselves being re-elected. We suffer – they win. I still like the idea of "no action or results = no pay for every political office.
      We need to get with the change dynamics and fix Washington in November!

    21. T.S.S. says:

      Really?!? This article would have us believe that Congress and the President would lead on this?! A President who has been calling for higher taxation on the "wealthiest" Americans (you define wealthiest)? A Senate that hasn't upheld its Constitutional duties through the passing of a budget in over +1,000 days? This rhetoric is great for articles, debating, and contemplating. However, not withstanding this audience, the 49% of Americans don't care because over 45% do not pay taxes. As Thomas Jefferson warned us, once the People understand they can vote themselves the treasury, they will do so. Constitution be d#$ned! We have, through our own laziness of electing representatives of a majority selfish bent, have created this monster, and elected its overseer. I doubt the American public, especially those within the confines of a metropolitan, are going to gain patriotism within the next 6 months and understand what true freedom is as defined by Providence, and thus remove this President and all representatives who have failed in upholding the Constitution. Is it not becoming disheartening, frustrating, and frankly, maddening?!?

    22. haroldson says:

      rumor has it there are threats passed around to keep non obama people in line . Search and see.

    23. VirginiaW says:

      If the Bush Tax cuts were never made, we would have nearly 3 trillion off the federal deficit. Likewise the Iraq war with trillions wasted.

      The Democrats would agree to 4 trillion more in cuts if the Republicans stopped guarding the very rich. Everyone should agree that we shouldn't drive into the ditch.

      Obama will probably compromise (unique concept in Republican circles!!) when he identifies whether he has a hostile, do-nothing Republican congress

      • Informed says:

        The Republicans do not control Congress, only the House of Representatives. The Democrats control the Senate.
        Congress is divided.

      • Suzanne says:

        To begin with, the 3 trillion you mention would have spent elsewhere. The hostile Republican Congress, i.e. House, is the only reason we have not actually declared total bankruptcy. Over the last three years we have lost the respect of not only our enemies but also our friends. We can thank the current administration for this destruction of our once proud nation.

        • Then of course they blamed Bush. For 2 solid yrs. Dems had complete control of the governemnt….the economy continued to slide….WHAT did they do to improve ANYTHING! Nada, zilch,zip,zero not a damn thing but blame Bush and "the second greatest recession of all time". Everything Obma has done has made things worst…proof in the housing market, food prices, health care costs, and gas prices that have doubled. On top of that his investments in solar power and batteries, his cronie friends and bundlers, has cost the taxpayers billions…not to mention his wife's trips around the world. He has lied to the people about transparency, his administration is filled with outright COMMUNISTS

          , he has lowered every standard in this country along with the credit rating of this great country, he has trampled the Constitution on several occassions. And to boot he has insulted the Supreme Court of the country twice. He is a disgrace to the people of this country, those who have an ounce of sense that is…the rest of you are lap dogs.

      • well I sure would like to see under 5% unemployment again…seems as soon as Pislosi got her meat hooks on that gavel the country started to decline…then of course we saw the results of Barney Frank and Maxcine Waters failure to see any problems coming with the housing bubble, dispite WARNINGS that were repeated in several hearings when all those named and their allies LIED.

      • Ben C. says:

        The top 400 hundred wealthiest Americans are worth 1.5 trillion. Even if you confiscated all of their wealth it wouldn't even pay for half of this years budget. By the way, your share of the deficit is $137,218.00. Please withdraw this from your account and send it to President Obama – he likes to spend your money.

      • wessr says:

        Sure wish liberals would come to understand that lowering tax burdens across all sectors of the economy is the surest, proven method to INCREASE revenue to our government and allow ALL classes to prosper. Whether people are too envious or not, the rich run the world, always have, always will, and without the rich, the rest of us are screwed. Study how you obtain your own wealth VirginiaW.

      • Tigger says:

        When President Bush too office we were over 5 Trillion in debt and we were in a recession do to the dot.com bust. Bush implemented across to board tax cuts to energize our economy. We came out of the recession in the shortest recovery ever recorded in US history. Despite 911 attack that we went to war with Afghanistan, the left over Iraq war that was escalating the violations to the cease fire agreement, Katrina and W spending like a drunkin sailor we had record federal revenue and the statistical equivalent of total employment.

        This carried through till 2006 when the Democrats took over congress, increased spending, and the fair housing act that magnified a cyclic down turn in the economy. Since then we have been in pretty dismal state with none or poor recovery statistics.

        So I am at the point of where anybody but President Oboma is a better choice.

      • Jack W Estes says:

        Great – another good socialist robot. Tax, tax, tax – spend, spend, spend. What does one suppose the gubment would have done with that windfall tax money had the Bush tax cuts not been in place? Just look at what this admin has done with the money entrusted to them in the past three years. We simply cannot afford Fore more years of obama golf and squander politics.

    24. Wayne Peterkin says:

      "Back in 2009, on a visit to Elkhart, Indiana, Obama emphatically stated his belief that raising taxes in a recession is a bad idea."

      I could make a pretty big comment here, but will limit it to this: It does not matter what Obama has said. He is an accomplished liar that says one thing while doing another. He is dedicated to a huge, tyrannical federal government and is working as hard as he can to see it happen.

      • Jeanne Stotler says:

        He seems to have as the Indians say"A forked tongue" He believes we are all either senile or forgetful. I've seen every Pres. since FDR talk and NEVER has tere been a POTUS as selfcentered, narcsitic,and egotistic as this one, nor one as dangerous as he is.

    25. Doug Jerrold says:

      A couple of corrections: The AMT Patch has already expired; so unless Congress extends the Patch, the 2012 AMT exemption will revert back to its original unindexed $45,000. The estate tax exemption for 2013 will decrease to $1 million, not $3.5 million.

    26. we need an end to the Bush tax cuts, they are killing us. If the GOP wants to protect the wealthy, they better sit down and compromise on budget issues, and stop the foolishness presented by the Ryan budget. If they refuse, they get what they get.

      • Stirling says:

        If you cared about the economy you would understand that "Tax Cuts" keep money in the private sector (which grows the economy.) "Tax Hikes or Expiring tax cuts" destroys wealth by funneling it off to the public sector (which spends it, which is deficit negative to the economy).

        The GOP just wants to grow the economy by keeping government spending at a sustainable level, rather then deficits which this administration thinks is ok. If you actually believe that 1.3 Trillion deficits each year (for the next 10 years) is acceptable, then you don't understand financial consequences, which will bankrupt all the entitlements if not brought back in line.

    27. Carol,AZ says:

      Worried about increased taxes?
      Friday, "el senor" pass the Dream Act by EX order with NO mention by the press. This fiscal Armageddon nightmare was rejected twice by Congress and most of America.Thousands of us faxed, emailed, voiced mailed, and wrote our electors on this issue.
      Worried about Taxes?
      AZ voter I.D law has just been blocked by another lawsuit by the DOJ. A counter suit has been filed in the 9th district Court of Appeals.
      By EX order el senor has given the Dir of ICE, Morton instructions " for prosecutorial discretion to decide not to assert the full scope of enforcement authority available to the agency."This allows full EX power to break all Federal Laws.
      Where are you H.F to report this recent purging for laws ?
      This recent action must be blocked by our Justice Dept that finally rear its head above the water mark.
      Wake UP America, we're drowning here and your State have the power to block this action.

    28. Guest says:

      I find this analysis incredibly disingenuous. Bush's "temporary" tax cuts are the cause. Obstructionist Republicans have continued the nonsense. How can Heritage, with a straight face, blame Obama ?

      • Stirling says:

        Tax hikes (which is what will happen when the cuts expire) take money out of the economy, which would normally be spent to grow the economy (in the private sector). The fact that Bush cared about the economy enough to let people keep more of their money speaks for itself. Government Spending (Public Sector) destroys wealth of the private sector (since it is only the private sector that can create wealth).

        Republican's realize that IF the private sector doesn't create the wealth to fund our government spending that our National Debt will bankrupt the country. The fact that they (GOP) are standing up for people like you and me to stop the reckless government deficit spending from Obama is a good thing, and not a bad thing.

    29. Dee says:

      As long as Harry Reid "runs" the Senate nothing will get done. It's too bad the rest of the Senate doesn't have the guts to override him. Of course, the Senate being mostly Democrat believes the same as he so there is no or little help from that corner. We've got to get Reid out of his position by taking control of the Senate. This will help however there are a lot of lily liver Republicans in the Senate and the House for that matter that will not stand up for the good of the country. .

    30. Blair Franconia, NH says:

      The IRS should be abolished and replaced by tariffs.

      • Thomas Mrak says:

        We'd all be better if no one paid taxes or very little.

        Then there would be a lot less "they're not paying their fair share!", and the government would have to be lean and trim like a business before the government got into the bank and private enterprise handout racket.

    31. Chris says:

      The President wants a larger government, with higher taxes and spending, and he is accomplishing his goal. What exactly the GOP is doing is far more confounding.

      GOP Members of Congress claim to be fiscal hawks, small-government conservatives, yada yada yada…. and then they pass the Ryan budget? Talk about an unserious plan! No effort to close the deficit within most of our lifetimes, not one penny out of our bloated and absurd military budget, not one federal department gets touched, no changes to entitlements for several years at least, by which time a new Congress will have voted for yet more spending.

      I'm a conservative who finds it increasingly difficult to take the GOP seriously on almost any issue. If GOP leaders wish to avoid the impending tax increases, they ought to fund at least that much in budgetary savings. Obama won't lead, that's a given…. but if the GOP also refuses to lead, taxes will be going up a lot more than $494 billion in the near future, out of simple economic necessity.

      Also, the writer may want to be a little more careful when quoting the Fed Chairman who, in context, was arguing simply for continuing "fiscal stimulus", i.e. deficit spending.

      Don't be blinded by labels. Both parties are at fault here. Spending now = tax increases later. Last I checked, it was a Republican president who cut taxes while spending trillions on unnecessary and costly foreign wars. Did Dubya think that we'd just never have to pay for his little rampages?

    32. Fedupaj says:

      The Bush tax cuts set to expire a $494 billion tax hike, congress, on both sides of the aisle, are thinking about bringing earmarks back, gas prices out of sight, national debt doubles in 3 years, huge trade inbalance, business and industry choked by over-regulation, borders not controlled and 10s of millions of illigal immigrants in US, no US Federal buget passed in last 3 years, unemployment over 8%, record number of people on food stamps, too much foreign dependence on oil supplies and dollar falling in value. These and hundreds of other problems are brought to by the actions of the President, Congress, and the Supreme Court. It is their policies and decisions that brought this to the country and it is obvious they have no interest in solving it. Do you think it is time to clean house and throw the bastards out and install some competent people to run the show. It is quite obvious that this bunch of incumbents isn't going to fix what they created—a Country in shambles. Just remember, things are the way they are because 536 people in DC want it that way.

    33. Nilos says:

      They can raise taxes all they want. My union will strike and we'll get the money we need for the taxes.

    34. There there, it'll be all right.

      Hope that helps.

    35. Isn't it congress that has to vote to extend these tax breaks. Why is the focus of this article about how Obama needs to do something? What can he do with a congress that refuses to budge – except to wait until the election and hopefully get the new sitting congress to extend all these tax breaks. This article should be slamming the majority held congress and their inability to do anything, and because of that, our country will struggle.

      • Tigger says:

        What "majority held congress" are you talking about? The Republicans hold the House and the Democrats hold the Senate. So there is no majority, the two parties have of one of the third branches of government is split.

        In 1998 the Republicans won Congress and pushed through the Contract with America. We had a revenue surplus. The dot.com bust happened and we went into a recession. W was elected with a Republican Congress and implemented the across the board "Bush tax cuts". Despite 911, the war in Afghanistan, left over ongoing war in Iraq, Katrina and W spending like a drunkin sailor we were in pretty good shape. What is con-sided full employment and record Federal revenue from taxes. In 2006 the Democrats won the congress, the Fair Housing Act facilitated the housing bust and the economy went into a nose dive. 2008 and President Obama was elected with the resounding term "Hope and Change". Even with control of the Congress things continued to get worse. In 2010 the Republicans won the House and we have seen some improvement in the economy.

        As Fox News likes to say we present the facts, you decide.

    36. Leah Bonebrake says:

      I have no faith in the President, the elected officials, or the "government" any more. What do I need to do personally to protect myself from this onslaught right now? I need answers, not blame.

    37. Lindy Combs says:

      With our Constitution and all the checks and balances that the founding fathers and whomever else I am not aware of wrote into everything, asif by the people and for the people really is supposed to MATTER, (and in my humble opinion, inspired by Jesus Christ Himself), it is truly a mystery why this cannot all be just stopped. Isn't it just the most Titanic-like experience imaginable!?. Obama AND all of his health demolishing Obamacare needs to just be deleted from our land.

    38. Endif says:

      OH MY GOD TAXMAGEDDON THAT SOUNDS… like hilarious hyperbolic partisan nonsense.

    39. Jim, CT says:

      To answer the writer's original question: the Republicans will wait until after the election because they want the threat of massive tax hikes hanging over our heads on election day. They want everyone to know what will happen if the Democrats win and are willing to put our money at risk for their pursuit of power. It's the reason that the Bush tax cuts had an expiration in the first place: to guarantee a need for a future Republican Congress. Both Republicans and Democrats are addicted to power and campaign contributions. Democrats get it by promising half the country free stuff. Republicans get it by promising the other half of the country the ability to keep a tiny fraction more of their own money. They're both content to borrow the difference. Cutting spending would get someone mad at them and elections are popularity contests.

      We should vote out every incumbent Republican in the upcoming primaries, without exception, then work to get whichever Republican who wins the primary into office.

    40. Elad says:

      There's also a 3.2 or 3.8 % tax on real estate sales in Obamacare that will affect some properties.

    41. wessr says:

      A very significant reminder from Heritage. No doubt many conservatives would hope the republicans would take full advantage of this opportunity to appeal to our hard stressed economy. Making the move early would be an offensive rather than the defensive positions we've had to take with humiliation since and in spite of the 2010 elections.

      • Sean says:

        To echo what the gentleman above stated, congressional Republicans have no vested interest in pursuing the issue now. It is more beneficial to their re-election campaigns to have this remain a contentious issue. It is wise to remember than largely no one in congress is ultimately looking out for the interests of the American people, neither Democrat nor Republican.

        Personal Disclaimer: I am neither Democrat nor Republican.

    42. V. Hass says:

      T0 Morning Bell:

      How can you say we are no longer in a recession? What has improved? Our number of jobs have decreased, our homes are being foreclosed, there is at least 10% unemployed. Who can believe any figures that gov't supplies?

    43. neil says:

      "Early on in his presidency, Barack Obama said he knew about the impact of taxes." is that like how Tom Cruise knows about the history of psychology?

    44. jaws4316 says:

      Always been his intent to raise taxes, and if he gets reelected we're screwed big time. He is also the biggest liar who has ever held the office. I guess if we were back in frontier times the American Indians would be saying "Black man in Washington speaks with forked tongue."

    45. gyhooya says:

      Lame. Fear mongers are so George W. Bush. Do you remember when Mr. W. Bush promised no nation building in his '00 presidential platform? Now where are we? And how much of the GWB nation building drains the fed budget? It's all for anti-terrorist activities you say? Get you head out of your arse…

    46. Dawn Mitra says:

      In the past years that Obama has been the president, I don't see anything that was successful and fruitful.

    47. John says:

      We need both increased revenue and spending cuts. We did fine under Clinton before the Bush Tax Cuts. Most of the increase will be on the wealthy, who gained the most from the Bush Tax Cuts. It is all fair and just and needed.

    48. I find it strange how all comments seem to be pro_Heritage and how few people know how radical your views really are. How in the world did you become a so-called think tank being so fafr right? I thought at least you would try to tell the truth without blowing it all out of proportion.

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