A Victory For Failure: "The Parasite Of Government Will Soon Sap The Last Essential Lifes Blood From Its Market Host, Causing Both To Fall Into Ruin."

By Attorney Jonathan Emord
Author of “The Rise of Tyranny” and
“Global Censorship of Health Information” and
“Restore The Republic“
November 12, 2012
NewsWithViews.com

A majority of Americans chose to put in place the same dysfunctional government that has been incapable of addressing with a plan, let alone actually reducing, the largest national debt ever held by a government in the world, $16 trillion. They re-elected a President who, by their own account, has failed to tackle the two most important issues facing the nation: the economy and the debt. They re-elected a President who has offered nothing to reduce annual deficits exceeding $1 trillion into the foreseeable future, promising to saddle the United States with a $20 trillion plus national debt by the time he leaves office in 2016. They re-elected a President committed to implement a series of new tax increases that will reduce the capital held by the most productive elements of society and will increase unemployment and dependency on the dole. In short, on November 6, 2012, a majority of Americans produced a victory for failure.

If you have any money in savings or investments, if you are an employer, if you do not presently have health insurance, or if you want to start a business of your own, get ready. You are about to experience an array of tax increases that will take from you everything you hoped you could save, invest, or use to expand and hire new employees.

By the end of December, if the dysfunctional United States government does not produce an agreement it has been unable to produce over the last four years (a decent bet), the Bush era tax cuts embodied in the Economic Growth and Tax Relief Reconciliation Act of 2001 and the Jobs and Growth Tax Relief Reconciliation Act of 2003 will expire in whole or part. If allowed to expire in totality, the loss of that tax relief will produce the single largest tax increase in American history. That would increase federal income taxes that are now 10 to 15%; that are now 25 to 28%, that are now 28 to 31%, that are now 33 to 36%, and that are now 35 to 39.6%. If Congress agrees to the President’s proposal of continuing the tax relief only for those earning less than $250,000 per year, each person earning that amount and above would suffer a very sizeable tax increase, depriving those most able of hiring new people of that opportunity and forcing many in this category to lay off more workers or put them on a part-time schedule. Those earning $250,000 to $1 million per year include owners of an enormous segment of small and medium sized businesses, the entities upon which the economy depends for the great bulk of existing jobs and for most new job creation.

As the Tax Foundation make clear, expiration of the Bush era cuts would also mean an end to indexing of the alternative minimum tax, higher taxes on capital gains and dividends, higher taxes for married couples, lower child tax credits, restoration of the estate tax, a loss in certain personal exemptions and itemized deductions for wealthy taxpayers. According to the Tax Foundation’s 2011 Tax Calculator, a family of four earning a combined income of $75,000 would experience a $2,143 tax increase. A family of four earning $150,000 would experience a $4,510 tax increase. A family of four earning $300,000 would experience a $11,000 tax increase.

Lest you think those taxes are the only ones about to rise, think again and remember one word: Obamacare. The Patient Protection and Affordable Care Act is chock full of new taxes that will land atop those which occur when either part or all of the Bush era tax cuts are allowed to expire. Consider the following summary of Obamacare tax increases that I have condensed from a detailed report on those increases published by the Tax Foundation.

In 2010, certain Obamacare taxes went into effect and will continue indefinitely. Those include an excise tax on charitable hospitals which kicks in if those hospitals fail to meet certain health assessment, financial assistance, and billing and collection requirements imposed by the Department of Health and Human Services. They include a new discretionary, case by case tax increase option for the IRS if the agency deems certain lawful tax deductions and tax minimizing plans to be lacking in a substantive justification. They include a new tax on bio-fuel. They include a new tax on innovator drug companies. They include an elimination of a special tax deduction for Blue Cross/Blue Shield if less than 85 percent of premium revenues are spent on clinical services. They include a new tax on indoor tanning salons. They include reduction in tax benefits derived from health savings account, flexibile spending account, and health reimbursement accounts.

In 2013, Obamacare will raise capital gains taxes from 15% to 23.8% for households making at least $250,000. Obamacare will raise the dividend tax rate from 15% to 43.4% for those same households. Obamacare will raise the Medicare payroll tax for employees from 1.45% to 2.35% and for the self-employed from 2.9% to 3.8%. Obamacare will impose a new 2.3% excise tax on medical device manufacturers. Obamacare will increase the threshold minimum expense before medical expenses are deductible from 7.5 percent of adjusted gross income to 10 percent of adjusted gross income. Obamacare will cap flexible spending accounts at $2,500, will eliminate the tax deduction for employer-provided retirement prescription drug coverage, and will impose a $500,000 annual executive compensation limit on health insurance executives.

Obamacare promises even more tax increases in 2014 (including the individual mandate tax, imposed for failure to buy health insurance; the employer mandated tax, imposed for failure of an employer to offer health coverage; and a new tax on health insurers). Finally in 2018, the federal government will impose an excise tax on comprehensive health insurance plans.

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Jonathan W. Emord is an attorney who practices constitutional and administrative law before the federal courts and agencies. Congressman Ron Paul calls Jonathan “a hero of the health freedom revolution” and says “all freedom-loving Americans are in [his] debt . . . for his courtroom [victories] on behalf of health freedom.” He has defeated the FDA in federal court a remarkable eight times, six on First Amendment grounds, and is the author of Amazon bestsellers The Rise of Tyranny, Global Censorship of Health Information, and Restore the Republic. He is also the American Justice columnist for U.S.A. Today Magazine. For more info visit Emord.com.

Website: Emord.com

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