- Personal Finance»
- Tax & Taxes»
- Income Tax
Tax Increases for 2013, Barrack Obama and Gradualism
So, has anyone received their first paycheck of 2013? Well, if you did, then you probably noticed a little bit was missing didn’t you? Don’t worry; it’s just your president and other wonderful politicians at work, again!
You see, president Obama signed that wonderful fiscal cliff bill into law remember, promising that roughly more than 98 percent of Americans and 97 percent of small businesses would not see their income taxes increase. Well your president fudged a hair and the whole government let us down!
And the American people’s part was this, we elected Barrack Obama! But from there it’s out of our hands. The usual Washington corruption ran its course along with a catalyst for disaster by the name of Barrack Obama.
Okay, I know, some of you may want to try and corner me in and say but Bush did this and Bush did that. So let me neutralize that whole situation really fast, I’m not a Bush fan either, and what I’m discussing is not about Bush. It’s about the current administration, taxes for 2013 and what you can expect.
The Spin Machine
Talk about a marketing “spin” machine, the U.S. government is absolutely the best double-speaking spin machine the world has to offer. You see, maybe income taxes didn’t go up, but check out what DID happen, because with the U.S. government there is of course always a huge disconnect between the truth and what is reported, and/or, what is supposed to happen, and what actually happens. Then add in the media and we just are all being fed a total poop sandwich; now on to the taxes.
Well one contributing factor of your new and not so improved 2013 paycheck is payroll taxes. Payroll taxes have gone up by 2% for 2013. And it’s not that they actually went up, it’s that the pay roll tax break was not extended. So how does that impact you? Well let me simplify for those keeping up with the Kardashians instead of other things that matter, if you get a paycheck, you will now get 2% less. That’s right, poor, middle class, black, white, purple, whatever $125 billion in payroll taxes will come from us this year!
Dividend taxes are going up in 2013 for those that make over $450,000. The “rich” did get a little relief here as they escaped with a 5% increase as a 39.6% increase was at stake. This means the rich will save oh, $20 billion. Not so bad!
Capital Gains Tax - Hide Yo’ Wife, Hide Yo’ Kids!
If you make $400,000/$450,000 or more, then things are getting ugly for you in terms of capital gains taxes in 2013. Short term assets are defined as assets held for exactly 1 year or less and long term assets are defined as assets held for 1 year or more.
Here’s how it works, your short term asset tax rate will go up from 35% to 43.4% and your long term asset tax rate will go up from 15% to 23.8%. You all have fun with that now, maybe that $20 billion you “save” will help you out.
If you make over $200,000, in 2013 you can also enjoy an additional 3.8% Medicare surcharge.
So there you have it, your new taxes for 2013. Not too pleasant. America is still a great country, I still get paid. I still love my life, but what does the future hold?
Keep in mind the theory of gradualism and how governments have used this concept for years and years to slowly take away the rights of citizens and push their agendas in small incremental changes. Gradualism is supposed to keep people calm, push change through undetected as people sit on the sofa watching reality TV.
So Americans, what’s next on the list? What do you think the next steps are? What level of taxes might we pay in 2014? Go do a little research! I’ll give you a hint, Obamacare.