These 13 Tax Increases Hit in 2013

It’s about time for us to uncover our eyes and take a hard look at what 2013 did to our finances.

Did you feel the pinch of the 13 tax hikes that hit Americans this year?

Before you review the list below, put these two on your watch list for 2014:

• Obamacare’s individual mandate. Beginning in 2014, it’s mandatory to purchase health insurance. If you don’t, you’ll pay a penalty that dramatically increases over time. It starts at $95 or 1 percent of your income (whichever is greater). It rises to $325 or 2 percent of income in 2015, and $695 or 2.5 percent of income in 2016.
• Obamacare tax on insurance companies. If you liked seeing your premiums go up, you’ll love this new tax on health insurers—which they are most likely to pass on to you.

As you start reviewing your tax information for 2013, here’s what you’re contending with.

The 13 Tax Increases of 2013

1. Payroll Tax: increase in the Social Security portion of the payroll tax from 4.2 percent to 6.2 percent for workers. This hit all Americans earning a paycheck—not just the “wealthy.” For example, The Wall Street Journal calculated that the “typical U.S. family earning $50,000 a year” would lose “an annual income boost of $1,000.”

2. Top marginal tax rate: increase from 35 percent to 39.6 percent for taxable incomes over $450,000 ($400,000 for single filers).

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).

Via: The Foundry

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CHICAGO: AS CITY CYCLING GROWS, SO DOES BIKE TAX TEMPTATION

CHICAGO (AP) -- Early blasts of snow, ice and below-zero temperatures haven't stopped a surprising number of Chicago cyclists from spinning through the slush this winter, thanks in part to a city so serious about accommodating them that it deploys mini-snow plows to clear bike lanes.

The snow-clearing operation is just the latest attention city leaders have lavished on cycling, from a growing web of bike lanes to the nation's second largest shared network of grab-and-go bicycles stationed all over town. But it also spotlights questions that have been raised here, a city wrestling with deep financial problems, and across the country.

Who is paying for all this bicycle upkeep? And shouldn't bicyclists be kicking in themselves?

A city councilwoman's recent proposal to institute a $25 annual cycling tax set off a lively debate that eventually sputtered out after the city responded with a collective "Say what?" A number of gruff voices spoke in favor, feeding off motorists' antagonism toward what they deride as stop sign-running freeloaders. Bike-friendly bloggers retorted that maybe pedestrians ought to be charged a shoe tax to use the sidewalks.

Via: AP

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New ObamaCare Fees Coming in 2014

WASHINGTON — Here comes the ObamaCare tax bill.

The cost of President Obama’s massive health-care law will hit Americans in 2014 as new taxes pile up on their insurance premiums and on their income-tax bills.

Most insurers aren’t advertising the ObamaCare taxes that are added on to premiums, opting instead to discretely pass them on to customers while quietly lobbying lawmakers for a break.

But one insurance company, Blue Cross Blue Shield of Alabama, laid bare the taxes on its bills with a separate line item for “Affordable Care Act Fees and Taxes.”

The new taxes on one customer’s bill added up to $23.14 a month, or $277.68 annually, according to Kaiser Health News. It boosted the monthly premium from $322.26 to $345.40 for that individual.

The new taxes and fees include a 2 percent levy on every health plan, which is expected to net about $8 billion for the government in 2014 and increase to $14.3 billion in 2018.

There’s also a $2 fee per policy that goes into a new medical-research trust fund called the Patient Centered Outcomes Research Institute.

Insurers pay a 3.5 percent user fee to sell medical plans on the HealthCare.gov Web site.

ObamaCare supporters argue that federal subsidies for many low-income Americans will not only cover the taxes, but pay a big chunk of the premiums

But ObamaCare taxes don’t stop with health-plan premiums.

Via: Fox News

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Illinois Governor Pat Quinn’s Approval Ratings Deep Underwater

A New Poll By Democratic Firm Public Policy Polling (PPP) Finds That 60 Percent Of Illinois Voters Disapprove Of Illinois Governor Pat Quinn’s Job Performance And Just 34 Percent Approve. (Public Policy Polling Poll, 557 RV, 4.2% MoE, 11/22-25/13)

• “Only 34% Of Voters Approve Of The Job Quinn Is Doing Compared To 60% Who Disapprove, Tying Him For The Third Most Unpopular Governor In The Country.” (Press Release, “Illinois Governor’s Race Looks Like A Toss Up,” Public Policy Polling, 11/26/13)

Quinn Is In A Statistical Dead Heat Will All Four Of His Republican Rivals. (Public Policy Polling Poll, 557 RV, 4.2% MoE, 11/22-25/13)

PAT QUINN MAY BE UNPOPULAR BECAUSE HE RAISED TAXES 67 PERCENT AFTER PROMISING THAT HE WOULDN’T

During Pat Quinn’s 2010 Reelection Race, His Budget Director Told Bloomberg NewsThat They Would Probably Increase Illinois’ Income Tax From 3 Percent To 5 Percent In January 2011, A 67% Increase. “Illinois, which is in its worst financial position ever, will raise the income-tax rate in January to address its deficit, Governor Pat Quinn’s budget director said. Lawmakers will likely increase the personal tax to 5 percent from 3 percent, generating $6 billion of new revenue, the budget director, David Vaught, said in an interview. The legislature failed to address the deficit this year because of the pending November election, he said.” (Darrell Preston, “Illinois Will Probably Raise Income-Tax Rate To 5%, Budget Director Says,” Bloomberg News, 7/28/10)

Quinn Quickly Denied That He Supported The 67% Tax Increase, And Vowed That He Would Veto Any Attempt To Raise The State’s Income Tax Rate Above 4%. “At a July 29 news conference, Quinn denied a published report claiming he planned to raise the state’s income tax by 2 percentage points. A 1 percent increase, Quinn said then, ‘is all that I propose and all that I support,’ an audibly irritated Quinn said. ‘I’m going to veto anything that’s not my plan.’” (Mike Riopell and Kerry Lester, Quinn Reneges On Vow To Veto 5% Tax,” Chicago Daily Herald, 1/12/11)

• Quinn: “I Have Proposed A 1% Surcharge For Education This Year. That Is All That I Have Proposed And All That I Support.” (Gov. Pat Quinn, Press Conference, 7/29/10)
• Quinn: “I’m Going to Veto Anything That Isn’t My Plan.” (Gov. Pat Quinn,Press Conference, 7/29/10)

Via: GOP.com

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[VIDEO] JFK Cutting Taxes: A Fiscal Camelot

As the country marks the 50th anniversary of President Kennedy’s assassination, there are many reflections about the man and his legacy. For those old enough, the emotion of the day will never be forgotten.

When it comes to his economic decisions, it may surprise some to take a look his tax policies. They contrast sharply with the Democratic Party of today, and, in particular, with the tax policies pursued by President Obama.

JFK Cut Taxes to Get Out of a Recession

Like our current President, Kennedy came to office amidst a recession and stubbornly high unemployment. Rather than raise taxes, President Kennedy proposed across-the-board tax cuts, taking the top rate from 91 percent to 70 percent.

According to The Tax Foundation, President Kennedy’s tax cut was larger than the Reagan tax cuts and any single Bush tax cut, compared with national income. While no one would deem a 70 percent top rate desirable, it was a fiscal Camelot compared to the 91 percent top rate in existence when Kennedy took office. It reflected his belief that cutting taxes—not raising taxes—would benefit the economy.

Via: The Foundry

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Obamacare Ads Steer Clear From Discussing Penalties

The state and federal health insurance exchanges created under Obamacare are touting the benefits of coverage but largely steering clear of discussing the penalty for not signing up. 

The avoidance of penalty talk is by design rather than default, reports The New York Times, noting that operators say market research has showed that consumers are more likely to respond to positive messages than to the threat of punishment.

"We feel that the carrot is better than the stick," Larry Hicks, a spokesman for Covered California,  told the newspaper. "This is a new endeavor. We want people to come in and test our wares."

Officials at Enroll America, a nonprofit agency promoting the new exchanges, agreed. 

Sophie Stern, a senior policy analyst for the agency, told the Times, "That doesn't mean that the penalty or the mandate isn't an important piece of the law from a policy perspective. But from a messaging perspective, this is what we find resonates best."

But there is another side to downplaying the penalty: The so-called tax is difficult to enforce. As Forbes contributor Roberton Williams explained,  "If you owe a penalty, you're supposed to pay it with your income tax return. But there's not much the IRS can do if you don't pay. They can't put you in jail or garnish your wages. In fact, about the only way the IRS can collect is if you're due a refund. They can deduct the penalty from this year's and future refunds."

"It might be that they want to be positive," Michael Cannon, director of health policy studies at the Cato Institute, said to the Times, referring to exchange operators. "But it's also the case that an informed customer is not their best customer."

There is also the question of whether it would cost more to buy insurance than to pay the penalty, which in 2014 is $95 per adult, or 1 percent of their income, and half that for children under 18. 

Via: Newsmax
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