By JLP | January 10, 2013
From 13 Tax Increases in 2013:
(Click on the link above for explanations for each of these)
1. Payroll tax
2. Top marginal tax rate
3. Phase out of personal exemptions for adjusted gross income (AGI) over $300,000 ($250,000 for single filers)
4. Phase down of itemized deductions for AGI over $300,000 ($250,000 for single filers)
5. Tax rates on investment
6. Death tax
7. Taxes on business investment
Obamacare tax increases that took effect:
8. Another investment tax increase
9. Another payroll tax hike
10. Medical device tax
11. Reducing the income tax deduction for individuals’ medical expenses.
12. Elimination of the corporate income tax deduction for expenses related to the Medicare Part D subsidy.
13. Limitation of the corporate income tax deduction
Isn’t it fun?
I wish we could move beyond this silliness and just set up a flat tax. Consider this:
“I made $75,000 this year. I contributed 10% to my 401(k). I owe $6,750 in federal income tax.”
“I made $1,500,000 this year. I put 10% away for retirement. I owe $135,000 in federal income tax.”