Get Ready For The Fleecing

(FLP Opinion) - 2010 could mark the year a lot of affluent Obama voters say to themselves, "What the heck was I thinking?" I'm not talking about the super wealthy, I'm talking about folks making between $100K & $300K annually. If Obama gets his way, their taxes are about to go WAY UP compliments of Health Care, Cap & Trade and several other new taxes (VAT Tax, etc.).

Comments

[Herb Tarlek]

Nearly all households with an income of $100K-$300K have income tax rates of 50+% when you include federal, state, local, and FICA. Then factor in 401K contributions, medical expenses, mortgage, living expenses, education expenses for kids, charitiable contributions (i.e. tithing), etc. might leave 10-25% of income as discretionary for those that spend conservatively.

With the health care plan limiting HSA's and making healthcare plan contributions no longer pretax, there is an effective tax increase on this group of several percentage points. Allowing Bush tax cuts to expire and the possibility of not doing the band aid fixes on the AMT are additional income tax increases. Effectively these factors would reduce discretionary income by over 50% or possibly eliminate it all together.

Then consider the dramatic increase in the money supply, which most economists say is highly inflationary. If the looming high inflation becomes reality, many more people will move up into these income brackets. Nominal income and real tax rates will rise, but real income will not.

We must reign in tax rates and government spending, or we'll be the first generation in the history of this country that leaves the next generaton (our children and grandchildren) worse off in terms of opportunity, quality of life, individual freedoms, and standard of living.

[Chuck (FL Pundit)]

Well said Herb, but we may actually leave future generations a third world country at the rate Obama and our idiotic liberal Congress are going.