The Obama administation continues to amaze me as they “rahm” new programs down our throats. Years before moving to California I worked in Manhattan and recall paying a city tax on top of New Jersey state and federal income taxes. While you earn more in the “big apple” it costs more to live and work in that area.
No problem. The latest from the New York Post is the anticipated backlash from the latest plan on funding of Universal Health Care raising the top income tax rate to almost 57 percent.
Sure. We are going to “create 600,000 new jobs,” later changed to say “create or save” that figure. Raising the top income tax bracket on small businesses is not the way to create or save jobs. I would opine that the opposite is bound to occur if this trial balloon is blindly approved by the Democratic controlled Congress. You have to smile when the president states “there is no free lunch”.
Following is part of today’s NY Post story. The link is provided below.
NY Post
DEM HEALTH RX A POI$ON PILL IN NY
TERRIFYING 57% TAX LOOMS FOR BIGGEST EARNERS
By CHARLES HURT IN DC and DAVID SEIFMAN AND JENNIFER FERMINO IN NY, Post Wire Services
Congressional plans to fund a massive health-care overhaul could have a job-killing effect on New York, creating a tax rate of nearly 60 percent for the state’s top earners and possibly pressuring small-business owners to shed workers.
New York’s top income bracket could reach as high as 57 percent — rates not seen in three decades — to pay for the massive health coverage proposed by House Democrats this week.
The top rate in New York City, home to many of the state’s wealthiest people, would be 58.68 percent, the Washington-based Tax Foundation said in a report yesterday.
The $544 billion tax hike would violate one of President Obama’s ironclad campaign promises: No family will pay higher tax rates than they would have paid in the 1990s.
Under the bill, three new tax brackets would be created for high earners, with a top rate of 45 percent for families making more than $1 million. That would be the highest income-tax rate since 1986, when the top rate was 50 percent.
The legislation is especially onerous for business owners, in part because it penalizes employers with a payroll bigger than $400,000 some 8 percent of wages if they don’t offer health care.
As a Senate health committee passed a different version of a health-care reform bill – a milestone for the issue – Obama said on NBC, “The American people have to realize that there’s no such thing as a free lunch.”
And in a Rose Garden speech, he said the “status quo” on health care is “threatening the financial stability of families, of businesses, and of government. It’s unsustainable, and it has to change.”
Asked if Obama supports the surtax on wealthiest Americans even though it would break a campaign pledge, White House spokesman Robert Gibbs said only, “It’s a process that we’re watching.”
“Placing a big tax burden on the small-business community would rob them of the resources they need to create the jobs that will lead us out of the recession,” said Tom Donohue, president of the US Chamber of Commerce.
“If there’s one sure way to kill the goose that lays the golden egg, this is it.”
http://www.nypost.com/seven/07162009/news/regionalnews/dem_health_rx_a_poion_pill_in_ny_179525.htm
Courtesy of Matt Drudge
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