Limit Income-Tax Obama mortgage interest deduction- By only allowing taxpayers in the top two income tax brackets (33% and 35%) to deduct their mortgage interest, charitable contributions, and local taxes at the 28% rate it is suggested that the Federal government could collect $267 billion over the next 10 years. This is supposedly one of the Obama administrations main tactics for raising revenue. However, numerous Democratic leaders have already spoken out against it claiming it would hurt charities and residents of highly taxed areas such as New York City. Although experts predict that the original proposal will likely not pass into law, they are suggesting that some type of watered down version will.
One theory states that most of the federal tax money doesn't go to pay for essential, and nonessential services, but that is it wasted! It's used to pay interest on our national debt. At the time of writing , the national debt was slightly over $11,000,000,000,000!
Speaking of the national debt, it took the U.S 191 years to run up its first trillion dollars in debt. In Bush's presidency, he ran up almost 5 trillion-faster than any of his predecessors. Over $400-billion in debt has been accrued in 57 days since President Obama took office, and if projections are accurate, he'll run up more debt in 4 years than Bush did in 8.
Repeal of Tax Saving Accounts and Deductions- Although not a direct tax increase, by repealing tax-advantaged savings accounts for health expenses, and repealing the medical expense deduction the Federal government could save over $250 billion. However, these taxes would mostly affect senior citizens already struggling with huge medical bills, and would directly break Obama's pledge to not increase taxes on families making under $250,000. Shared Responsibility Payments- Although it may sound confusing, shared responsibility payments are basically fines for not having insurance. By requiring Americans to have some sort of coverage-similar to how motorists must get auto insurance-and enforcing a $1,000 per year fine, the Federal government could collect over $36 billion over the next decade. It would likely include subsidies for lower income Americans, and the concept has gotten support from a number of key Senate Democrats.
Expanded Medicare Taxes- One of the final taxes being considered to help pay for health care reform is an expansion of the Medicare tax. Currently the tax is only levied on earned income (wages from your employer, etc.). By levying the tax on capital gains, dividends and other unearned income, and increasing the rate for high-income earners, the government could collect over $500 billion over the next year. However, raising taxes on unearned income is highly unpopular among the American public, and under the current proposal 80% of the tax increase would be paid for by the top 5% of taxpayers.
One theory states that most of the federal tax money doesn't go to pay for essential, and nonessential services, but that is it wasted! It's used to pay interest on our national debt. At the time of writing , the national debt was slightly over $11,000,000,000,000!
Speaking of the national debt, it took the U.S 191 years to run up its first trillion dollars in debt. In Bush's presidency, he ran up almost 5 trillion-faster than any of his predecessors. Over $400-billion in debt has been accrued in 57 days since President Obama took office, and if projections are accurate, he'll run up more debt in 4 years than Bush did in 8.
Repeal of Tax Saving Accounts and Deductions- Although not a direct tax increase, by repealing tax-advantaged savings accounts for health expenses, and repealing the medical expense deduction the Federal government could save over $250 billion. However, these taxes would mostly affect senior citizens already struggling with huge medical bills, and would directly break Obama's pledge to not increase taxes on families making under $250,000. Shared Responsibility Payments- Although it may sound confusing, shared responsibility payments are basically fines for not having insurance. By requiring Americans to have some sort of coverage-similar to how motorists must get auto insurance-and enforcing a $1,000 per year fine, the Federal government could collect over $36 billion over the next decade. It would likely include subsidies for lower income Americans, and the concept has gotten support from a number of key Senate Democrats.
Expanded Medicare Taxes- One of the final taxes being considered to help pay for health care reform is an expansion of the Medicare tax. Currently the tax is only levied on earned income (wages from your employer, etc.). By levying the tax on capital gains, dividends and other unearned income, and increasing the rate for high-income earners, the government could collect over $500 billion over the next year. However, raising taxes on unearned income is highly unpopular among the American public, and under the current proposal 80% of the tax increase would be paid for by the top 5% of taxpayers.
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