In addition to the enormous tax increases that are being phased in under ObamaCare - including higher taxes on upper incomes, including capital gains, and penalty taxes on businesses and individuals who do not offer or have government approved health insurance, along with higher levies on pharmaceutical firms, medical device manufacturers and health insurance companies - the 2001 and 2003 tax relief measures expire at the end of this year.
If Congress does nothing, huge tax increases will hit all aspects of the economy directly.
If President Obama gets his way, large tax hikes would still be imposed, and the negative effects of those tax increases would be felt throughout the economy.
The Obama tax agenda features raising the two top personal income tax rates from 33 percent and 35 percent to 36 percent and 39.6 percent, respectively; increasing the top individual capital gains and dividends tax rate of 15 percent to 20 percent; and after it has been eliminated for 2010, re-imposing the death tax at its 2009 levels, with a top rate of 45 percent and $3.5 million exemption.
Let's consider a few key points as to why these tax increases would be bad ideas...