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  • Obama's Dirty Little Tax Secret: He's Already Raised Taxes on the Rich (CHART)

    The one glaring omission in President Obama’s fiscal cliff demands for higher rates on top earners is that he’s already raised their taxes. That’s right! When he signed Obamacare into law, he raised tax rates on families earning more than $250,000—his definition of rich.

    He has done so by including in the 18 separate Obamacare tax hikes an increase of the tax rates on income and investment.

    Obamacare raises the hospital insurance (HI) portion of the payroll tax on wage income over $250,000 from 2.9 percent to 3.8 percent. And it applies that 3.8 percent rate to investment income—capital gains and dividends—for those with incomes above that level. This is a massive policy change, since it represents the first time the payroll tax will apply to investment income. And even though this investment income HI tax would apply only to top earners, it is a dangerous step down a slippery, tax-hiking slope.

    These economically damaging tax hikes will go into effect on January 1, 2013. When they do, the economy will suffer, because incentives to work and invest will fall. Less work and investment will mean that businesses create fewer jobs and pay their existing workers less than they otherwise would have.

    Obama’s plan to raise rates further by allowing the Bush-era tax policies to expire for the same taxpayers he already hit with his Obamacare tax rate hikes would only exacerbate the economic damage.

    Obama is fond of arguing that his plan for taxing the rich would just be going back to the rates we had under President Clinton. That is flat out incorrect. He again forgets that he signed Obamacare into law.

    When factoring in the Medicare tax, the top income tax rate under President Clinton was 42.5 percent. Because of the HI tax increase in Obamacare, it would be 43.4 percent next year—but part of it will be hidden in the Medicare payroll tax.

    The disparity between the Clinton rates and Obama rates would be even greater on investment. If Obama gets his way, the rate on capital gains would go to 23.8 percent when adding in the Obamacare surtax. The rate was 20 percent under Clinton. For dividends, the rate almost triples from 15 percent this year to 43.4 percent next year. Under Clinton, the dividends rate was 39.6 percent. (continues below chart)

    In total, President Obama’s tax rate increases on upper-income earners in Obamacare will raise taxes by almost $318 billion over the next 10 years. But apparently that isn’t enough to satisfy the President’s ravenous appetite for even more revenue extracted from the small businesses and investors that help create the jobs the country desperately needs right now.

    Beware the President’s demands for another round of tax increases on high-income earners, whether through higher rates or limiting deductions, exemptions, and credits. The hunger for higher taxes will never be satisfied, nor will it ever do anything to stop our impending debt crisis.

    Posted in Featured, Obamacare [slideshow_deploy]

    26 Responses to Obama's Dirty Little Tax Secret: He's Already Raised Taxes on the Rich (CHART)

    1. Seth says:

      Awesome!

    2. chopper says:

      The American takers elected him…………………….now the American makers get to sustain him……

      Stop paying your taxes…………….send not one cent to the deceiving despot in DC.

      eff him and his ilk. Cash up front is how i'll be operating mylife. No credit, no taxes, no capital gains.

      Cash or precious metals is the way to go.

      No change, No hope, No reciepts, no returns, and no guaruntees.

      except maybe a forehead stamp of approval………………………..via Smith & Wesson.

      • @dawneieo says:

        We the people need to elect a tax broker to collect our taxes, hold our tax money hostage until the we, the tax payers, are satisfied with how the debt problem is repaired.

      • Beverly says:

        I like your way of thinking!

      • FEDUP says:

        2013 Taxpayer's Strike – All private business must withhold their federal tax deposits starting on January 1, 2013 in revolt of increased taxes and out of control federal spending and entitlements. Let the federal cash flow plummet and the lazy ass blood suckers starve! We can cut the federal spending ourselves without Washington taking action. Today's Democrats and Republicans are all the same – politicians. By definition politicians are on the entitlement system of which, we the taxpayers are supporting.

    3. Tom Kulaga says:

      How about the cost to all the middle income people with Cadillac health insurance plans? For example many hospital employees HAD Cadillac Health insurance plans until the end of this month. My daughter, a nurse at Gennessee County hospital near Flint Michigan will need to pay $600 per month to keep her existing plan or take a lesser plan (80-20 bla bla bla).

    4. Moeys says:

      You can't possibly reduce the debt by taxing the so-called rich. Believe me $250,000 is not lap of luxury rich. The higher income earners are going to have a hard time keeping their companies afloat and we are going to see more massive layoffs for reasons ranging from higher taxes to the repressive nature of Obamacare. It is a very bleak outlook!

    5. Bill Pound says:

      OK, so these are the prospects for those earning more than $250,000. What about the rest of us? Many of us are retired or soon will be, earning less than this threshold but holding investments to provide income, particularly dividend income. What are our prospects?

      • Sitting Duck says:

        Your prospects will be 0.10% minus inflation.

      • B.Pryor says:

        Bleak.

      • Frank says:

        1. I'm not sure how accurate this analysis is – it is alarming if it is close to accurate; I received this YouTube video a few days ago. I wish I had it before the election so I could have forwarded to some of my colleagues. The video is by Dick Morris, one of his lunchtime chats. http://www.youtube.com/watch_popup?v=-wIfI2whjiM
        2. I'm also concerned about the $250K threshold. In recent conversations, I've heard this threshold is coming down to those who make more than $200K. I would like to see something in the news about this if it is true.

    6. wally says:

      What else would we expect from a socialist like Obama and Ed Asner etc. I read recently that there are at least 53 socialists in congress. Greece here we come and the road is going to be bumpy.

    7. Patrick Henrey II says:

      I'm retired and in my mid 80's and trying to live on modest dividends and Social Security and the outlook for 2013 is bleak indeed. If this clown thinks that the American people are going to take this crap sitting down he doesn't know the American people. The only bright spot in all of this is: he just may have awakened the next American Revolution and doesn't know it – yet.

    8. Mike, Wichita Falls says:

      Now people making as little as $250K a year are "rich". When tax hikes on them do not raise enough revenue, and they won't, how long before everyone is "rich"?

      He is coming for everyone.

    9. Rose Bogaert says:

      Saying this to people does nothing. Just wait til they start feeling it. That is when they will realize they are not only making well off people miserable but they will be their miserable company,

    10. Kenmar13 says:

      What happens to 401 K's and IRA accounts under Obamacare? So far I've heard nothing. I'm retired with a decent IRA nestegg so am still under the 250M threshold but like past money grabs how long before it reaches down to my level?

    11. Dawn says:

      We the U.S. tax paying citizens need to appoint a tax mediator to collect our taxes. The taxes will be held hostage by the appointed tax mediator until we are satisfied with the U.S. fiscal plan.

    12. Blair Franconia, NH says:

      Get rid of the income tax and the capital gains tax.

    13. Well it looks like Obama had turned America into a dictatorship. Ihave norespect for Obama. Idon't know how he got re-elected. This is a coup right. Liberty and Justice for all no longer are guideposts of Americas. The United Stares of America is now a dictatorship and Obama is dictator.He has no chains to bind him like the Declaration of Independence or the Constitution of the United States of America. Stupid people elected him. I hope they will soon learn to cry and cry for their stupidity. My heart isbroken for all the suffering that everyone will fall under. I understand that there were poll watchers from the U N at polls in America on Nov. 6, 2012 This is a day remembered in infamy as is Pearl Harbor and The World Trade Center attack on September 11, 2001.

    14. Bob Marshall says:

      The Heritage Foundation research reported that the generation of retirees today will get less than they put for the first time since Social Security began and it will only continue to decline.

    15. Chris says:

      THE BIGGEST LIE EVER…..Taxing individuals / businesses of grossing $250,000 is a crock, these are the backbone of America not the rich—-Think about —365 days in a yr, say 25 days off a yr for Holidays or days off..That leaves 340 days……That's a business grossing $750.00 a day…….That's about all Restaurant's,Fast-Food,Mom n Pop shops,Retail shops and most small business in all local area's……You take away payroll,overhead,OBAMACARE, taxes and reinvesting in your business leaves you a modest pay which now is taxed at a higher rate plus any penalty (tax)

      • Chris says:

        Do you understand that payroll, overhead and all other expenses do not count as income. And so, that portion of the revenue will not be taxed.

    16. Nan says:

      Your, as well as my, prospects will never be good until we get spending under control. According to Bill O'Reilly's Talking Points Memo we have 109 million private sector workers who are paying for 66 million food stamp and medicaid recipients and 21 million government workers. There are not enough people paying into our system to keep up the massive spending. THIS IS NOT WORKING!. We need to reduce federal government spending NOW.

      • Chris says:

        Many of the people on foodstamps/medicaid are working but are getting such low wages that they need additional support to feed themselves and their families.

        As for the Govt workforce, total Government workforce(federal + state + local) actually decreased after 2009. Federal Govt size increased, but by 15k – less rate than rate of population growth.
        http://www.aei-ideas.org/2012/09/has-government-e

    17. ChuckL says:

      When are we going to see someone analyze Obama's actions and al available information about him, and then release the information that he is a Muslim Terrorist From Indonesia, where he is currently a citizen and that he is doing wharever he can do to destroy the United States.

    18. Bill says:

      All Republican elected politicians need to be telling this story in their respective states and districts in the next few weeks. There are far too many people who don't have a clue about the 18 new taxes in Obamacare and think BHO is right about taxing the rich. The media is no help.

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