Right on cue, the Wall Street Journal editorial page features a summary of Mr. Obama's tax-raising plans I referred to in the last post. It's not pretty, and no matter what's in the American Jobs Act this collection of economic anchors isn't likely to let the American economic ship cruise freely.
Mr. Obama said last week that he wants $240 billion in new tax incentives for workers and small business, but the catch is that all of these tax breaks would expire at the end of next year. To pay for all this, White House budget director Jack Lew also proposed $467 billion in new taxes that would begin a mere 16 months from now. The tax list includes limiting deductions for those earning more than $200,000 ($250,000 for couples), limiting tax breaks for oil and gas companies, and a tax increase on carried interest earned by private equity firms. These tax increases would not be temporary.
What this means is that millions of small-business owners had better enjoy the next 16 months, because come January 2013 they are going to get hit with a giant tax bill...
The article itemizes the taxes
- allowing Bush rates to expire, 2013, a programmed tax increase that includes an increase in the capital gains rates
- elimination of itemization from "the wealthy," 2013
- expiration of the proposed temporary tax credits for 2012, no longer available 2013
- two new taxes hidden in ObamaCare, including a 2.9% surcharge on investment income
Yeah, small business owners will be crawling over each other to be first in line to increase their company expenses in personnel costs and health care costs by adding jobs with all that in their future.
All of this assumes that American business owners aren't smart enough to look beyond the next few months. They can surely see the new burdens they'll face in 2013, and they aren't about to load up on new employees or take new large risks if they aren't sure what their costs will be in 16 months. They can also reasonably wonder whether Mr. Obama's tax hike will hurt the overall economy in 2013—another reason to be cautious now.
It's painfully obvious at this point that for the President it's not about the economy. It's not about jobs. And it's not about unleashing the American entrepreneurial spirit. The president doesn't care a whit about the private economy, I'm sad to say. It's about the redistribution, stupid. And America, composed as it is of Americans, should just say no.