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Sunday, February 19, 2012

Washington Post Announces Impending Taxmageddon

In a front page article by Lori Montgomery, the Washington Post is announcing the impending "taxmageddon", the January 1, 2013, scheduled return to the pre-Bush tax rates and credits together with the imposition of the first of the major Obamacare increases and the end of the payroll tax holiday. All together these tax increases will take over half a trillion dollars out of the economy in 2013 if nothing is done. Indeed, although Montgomery does not mention it, the Alternative Minimum Tax will also revert to its original form and the so-called Doc Fix will expire at that time as well, events which will also suck funds from the economy. According to the WaPo, this confluence of events will give the Democrats and Obama great power to achieve their goals ina a lame duck session next December. The pressure will all be on the GOP according to WaPo in order to avoid being blamed for a tax increase.

It never fails to amaze me how myopic the supposedly insightful liberal media really is. Taxmageddon has been on the schedule for two years and yet they are just discovering it. In truth, there is no way that this mess will ever wait until after the election. It will be one of the biggest issues in the fall without a doubt. Does the WaPo really think that Obama's plan to have 250 billion dollars sucked out of the economy (to use their term) will not be mentioned? Obama, after all, wants about half of these tax increases to proceed. My prediction is that the GOP candidate will favor a wholesale change to the tax structure and simultaneously blast Obama for favoring a huge tax increase.

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