I was watching a video that a friend sent me in which Dick Morris is talking about the tax changes coming in November if Obama gets his legislation passed. Here is the video:
According to Morris, the following changes are already in Congress awaiting approval:
If you and your spouse make more than $250,000:
- Increase the tax rate to 40% of income
- Apply Social Security tax (FICA) to entire income (not just the first $100,000 as it is now)
- Eliminate the state and local tax deduction from federal tax returns
- Eliminate mortgage tax deduction
If you and your spouse make $150,00 – $250,000:
- Increase the tax rate
- Apply FICA up to $150,000 of income
- Reduce the mortgage deduction, state and local tax deduction, and charitable deductions.
For all income earners:
- Eliminate the capital gains exemption when you sell your house
- Increase capital gains tax to 30%
Most of my friends, family, and I make less than $150,000 (as a couple), so much of this doesn’t affect me, nor does it affect the ~45% of Americans who pay $0 in taxes. If the anti-Obama politicians want to entice people to vote, they need to appeal to the potential voters who are middle class, blue-collar/white-collar workers, stay-at-home moms, the unemployed, and so on. That means jobs creation, education, medical expenses, retirement, and so on.
Generally, truly poor people don’t vote. They have bigger problems to deal with, like how will they feed their children. And the “celebrity” rich feel guilty about being rich, so they’re going to vote with the Liberals. Tell them they’ll have to pay more taxes and they’ll say, “Oh, good; I feel much better now.” Those of us who actually pay the taxes is the audience that the anti-Obama politicians need to appeal to.