2010: The Year of Tax Hikes Beyond Belief

Tim Phillips

This Tax Day I’m sure we’ll all raise a glass to our friends at the IRS.

After all, their ranks are only growing. While the private sector is still struggling, with unemployment hovering just under 10 percent and real unemployment (including those who have quit looking for work) estimated at over 16 percent, this is a boom time for hiring at the IRS. Come to think of it, it’s always a boom time for government hiring in general…

…But there’s more on the tax front. Almost another $1 trillion in tax increases are heading our way on December 31, 2010, when the Bush tax cuts expire. I don’t think Americans are ready for this massive tax hike. They’ve forgotten it’s coming. They’re still having trouble finding new jobs, or getting their mortgages in order. They’re not ready for higher capital gains taxes, a return of the death tax, and a tax penalty slapped on married filers.

And with President Obama and Speaker Pelosi still looking to “spread the wealth around” as part of their radical liberal agenda, we’re looking at additional tax threats in coming months. First, there’s the cherished Holy Grail of Al Gore’s nutty environmental movement: cap-and-trade, with its crippling new energy taxes.

Gas is already headed back toward $4 a gallon, but the environmental movement and President Obama want to take us to European levels with $6- or $7-a-gallon gas. I was in Copenhagen for the U.N. “Climate Change” conference last December, and we shot a video at a local gas station where gas was the equivalent of $7.50 per gallon because of their cap-and-trade energy tax.

Now prominent economic names like Paul Volcker, a former Federal Reserve chairman, are getting behind the idea of a Value-Added Tax (VAT). It’s grossly misnamed, because it doesn’t add value to anything you buy – it only adds cost. How many new IRS workers would we need to implement and enforce a new tax like the VAT that would hit every good produced at every step of the production process? I shudder to imagine.

Is all this new tax-and-spend Washington, D.C. big government bringing us prosperity or a better life? Of course not. The budget deficit keeps climbing – it’ll hit over $1.5 trillion this year – but our personal incomes keep dropping.

Since President Obama took office, the personal income of Americans has DROPPED by 3.2 percent when you exclude government handouts…

Read the entire article at BigGovernment.com

H/T Americans for Prosperity

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