Obama Already Raised Taxes on the Rich

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. 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.

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.

Read More Here: http://blog.heritage.org/2012/12/06/obamas-dirty-little-tax-secret-hes-already-raised-taxes-on-the-rich-chart/?utm_source=Newsletter&utm_medium=Email

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