by John Wayne Tucker, candidate, U.S. Congress, Missouri, 3rd District
Why Aren’t Republican’s Talking About This?Your taxes are going up and they are going up big time. For some strange reason, no Republican candidate is talking about this pending disaster to the American people. And, of course, the Democratic Party is not going to be talking about the increases after Obama’s promise that no person making less than $250,000 would see any increase in taxes. But it is certain that you and everyone else will be raging angry in about six months when the 2001 and 2003 Republican tax cuts sunset on January 1st. This will be one of the biggest tax increases we have seen and it will be virtually across the board. Your income is going to be melting away. And all of this will come during the massively depressed economy and jobless rate that we already have. In case no one has noticed, small businesses are closing in record numbers and this tax increase will hurt those remaining small business directly and indirectly.
First, every income tax bracket will increase significantly. Even the 10% bracket will increase to 15%. And every other bracket will increase by similar amounts. That is 5%, not $5.00. This is a huge amount of increase for anyone’s income bracket. Counting on being married to help out? Well, there will be an increase in taxes for married people (the so called “marriage penalty”), a reduction of child tax credits by half and no more doubling of the child standard deduction for married couples. Counting on an inheritance? Sorry, the “Death Tax” will return. There will be as much as 55% on estates of One Million Dollars or more (and don’t think there are not a whole lot more of those than there have ever been). Work hard, be successful, save up something to leave your kids and give it to the government. Of course if you are going to be in a nursing home and use Medicaid, the government can just tear up your deed and make one with their name on it anyway. Getting an inheritance in America is practically impossible. So, you have been saving and investing your money. Sorry, Capital Gains tax is going up from 15 to 20%. Perhaps we would be better off to just enjoy our money when we get it. The dividends tax will rise from 15 percent this year to 39.6 percent in 2011, and another 3.8 percent in 2013. And don’t forget that Obamacare is not free. There are over twenty new taxes associated with that program that will also go into effect on Jan. 1, 2011.
The final wave of taxes slated for this coming January includes the Alternative Minimum Tax (AMT) and Employer Tax Hikes. According to the Tax Policy Center, failure to index the AMT will cause the number of families forced to pay at a higher rate to increase from 4 million to 28.5 million families. The ability of small businesses to expense rather than depreciate equipment will reduce from $250,000 to $25,000. Large businesses can expense half of their equipment, but in January, 2011, no expensing will be allowed at all. Everything will have to be depreciated. In addition, there will be a large host of other business taxes that will increase. This along with the sagging economy will lead to lost jobs and a more depressed economy.
Furthermore, deductions for tuition will be eliminated, teachers will not be able to deduct personal moneys spent for classroom purposes, employers will be limited in the educational assistance they can provide (one of the best benefits provided by employers these days) and student loan interest will not be deductible. And finally, charitable donations will not be allowed by retired people from their IRA.
All of this means that the economy will get worse, personal wealth will decline, jobs will be lost and the economy will continue to sink. So why is no politician talking about this? I have no idea. But this non-politician says, “I will work to extend these tax cuts until we can find a way to improve the tax system so that the government does not make it impossible for us to enjoy the benefits of our hard work.” I have signed many pledges, including the No Death Tax pledge, but the most important pledge I have signed is the one that I created for myself. You can find it on my web site http://johnwaynetucker.com/pledge.html. No politician would sign such a pledge, but then, I am not a politician. Not only do I recognize the dangers inherent in the tax increases, but I am committed to prevent that disaster. Nobody else is even talking about it. I am promising to work to fix it.
But to do that, I need you to select John Wayne Tucker in the primary on August 3rd. Please donate, spread the word and most importantly vote on August 3rd.
John Wayne Tucker