Redstate University.

Certainly contains helpful information.

and while I was familiar with most of the tax increases, seeing them listed here stirs up the Galt in me, again. The looters never rest.

For the sake of my employees and my own hard-headedness, I’ll try to persevere, at least for a while.Whatever happens, politics will be the focus of my remaining years.

Can anyone with a lick of business sense or even common street sense imagine we can have real employment growth in the face of Bambi’s attack? With each poor report on the economy, the MSM tells us the news is unexpected. B.S. – we are seeing exactly what one would expect to see with the anti-business, anti-family, high tax, socialist policies of Bambi.

and if you also consider that the O’s Debt Commission is also supposed to make their recommendations in December, it can get even worse. They said everything is on the table. It is widely speculated that they will recommend a VAT tax, and that they will recommend entitlement cuts. It will be interesting to see what gas costs per gallon later in the year. Meat prices are supposed to increase by 25%. Also, we don’t know what all the Lefties will push through during the lame duck period- Crap and Tax? Amnesty?

Up until now, many have not seen many drastic changes. No matter how much you warn people of what is coming, until they actually see a much lower paycheck, or have to pay $5-$7 per gallon for gas, they don’t panic, they remain in denial. No question that in January that will change.

Even if the Republicans take the majorities in both houses, they cannot stop these changes. Whatever legislation they try to pass will be met with a veto pen. Even if they begin Impeachment proceedings, then we get VP Bite Me, and he will continue to do the same. We are so screwed.

Messing w/ taxes is an automatic structural adjustment down. The vicious circle of falling market (scaring investors and destroying wealth perception) will see sphincters tighten even more on spending and investment.

Obamageddons self fulfilling prophecy.

A VAT will just bleed any earnings away by retaxing the taxed income again.
The wealth flight in this country is going to be staggering.
If we think the economy is bad now, wait until next year!

Great Post, Veronica….it’s really good to be out front with this early and often before the rest of the primaries and the election.

We will definitely see the resurgence of Willie Nelson’s “Farm Aid” concerts in 2011 when families struggle with the death tax!

“When Americans prepare to file their tax returns in January of 2011, they’ll be in for a nasty surprise—the AMT won’t be held harmless, and many tax relief provisions will have expired.”

I don’t file my 2011 tax return until January 2012. I’d be filing for 2010 in January 2011.

about the increases outside of the AMT. We had some extremely good economic times under rates this high or higher (ie the 80′s and 90′s) and the marginal increases are simply that, marginal (.03/dollar).

Now, the AMT unfix, is going to be quite painful (although it won’t be as bad as 28 million once the higher brackets are back in place). And the dividend increase is really only at your highest marginal rate, not 39.6%.

Are these increases going to be painful and suck, yes. Am I going to be royally pissed when I file my taxes next year (assuming the rates don’t get fixed by then), yes. But is the economy going to end because of this, no.

And as a further point, had we not run up obscene deficits during good economic times (ie the 80′s through 2000′s), then it is quite likely that the overall tax burden would be a lot lower, as government would have stayed smaller (all of it, including the military) and our interest expense would be dramatically lower.

The problem with our new bout of Keynesian economics is that we have essentially been running a Keynesian economy for the past 30 years, with government priming the pump through deficit spending all along.

Actually, I’m still looking into it even with his issues.
I spend half the year outside the country as it is.

As someone who flies 100,000 actual miles internationally a year, the planes are filled with business folks moving operations overseas.

Time to go. Heck, at least half the Republicans are closet dems who won’t even stand up to an unpopular president who is bankrupting the country. How come the Republican leadership isn’t talking about the discharge petition for Obamacare every day?

There silence shouts.

President Obama has absolutely no idea of the revenue-generating process in America. He was raised and educated on handouts, freebies, and welfare while studying Socialism, Marxism, and Communism. So, in his mind he thinks that government is the source of revenue and that government is responsible for job creation. However, it’s no coincidence that every major GDP boom in American history has followed a huge tax cut. This tax hike is going to cripple this already-stalled economic recovery.

One of the major changes in this tax bill is that small business equipment expensing will be reduced from $250,000 to $25,000 while expensing itself will be slashed 50%. I employ nine people and we work in the tourism industry in Las Vegas.

I buy five touring vans a year, which is my major equipment purchase. It’s better to replace them than to fall into that trap of trying to keep a van in operation than just replacing it yearly. I will no longer be able to write off my van purchases and will have to depreciate them (keep them longer and invest into the expenses I want to avoid).

The general expensing that will be reduced by 50% includes the cost of breakfast, lunch, park entry fee, and hidden costs like commercial auto insurance, general liability insurance, gasoline, van maintenance (tires, repairs), application fees, wages, rent, and utilities. Fifty percent of my expensing on these costs will disappear.

Here’s how these changes on businesses will fall through the economy and trickle up into other areas. I’m being forced to leave more tangible goods into the system than what I use to take out. This is NOT the path to economic recovery and will cause serious deflation. What will happen is that I won’t buy five vans a year anymore, meaning GM and the suppliers for GM will have five less vans to build in 2011. The government won’t collect sales tax from me, the DMV won’t have my vans to collect fees on, employee taxes on the union guys and suppliers who built the vans and parts, and less corporate sales tax for GM. I’m also going to have to make some changes to reduce my general expenses.

I will have to re-evaluate how and where I cut some of the general expenses. I’m most likely going to cut out the McDonald’s breakfast that we include with our tours. We spent $63,000 last year at McDonald’s and always frequent the same store. That means that McDonald’s will be losing this revenue, in addition to all of their suppliers. Once again, there will be no sales tax, employee taxes, or anything to collect because of this transaction being removed from the system.

These two tax changes are going to cost one or two of my employees their jobs. It will also cost millions more their jobs as the dominos fall through the economy. The changes that I make at my level are going to trickle through the economy, effecting workers at every level; GM, suppliers, McDonald’s, government agencies. I know I’m just one small business but I’m one of 24.7 million small businesses in America. We are all contemplating the same decisions right now. The scary thing is that laying off one employee (for me) doesn’t sound catastrophic. It does when you consider that there are 24.7 million small businesses who are contemplating the same decisions right now. And that translates to 24.7 million jobs lost nationwide just with what we are considering. This does not include jobs lost because of the tangible goods that we are forced to leave into the system with companies like GM, McDonald’s, or their suppliers.

I take it somewhere in the morass of little innocuous riders and add-on bills, the Congress has exempted themselves, their families, their cronies, future congressional members and future family members (but only if they are in good standing with the Politburo of course) from any of this bourgeois tax business.

The old school, in the beginning, just me and my creator part of my brain wants Wrath to pay a visit upon those who seek to steal from us in the name of being fair, beat us down and subjugate this Great Free Country. I am ashamed to say I would find delight in all of them being turned to blobs of smoldering goo or pillars of salt.

My higher, rational brain would prefer them to just go away and that we return to being a practical free country.
We were and still are a practical people.

My rational brain tells me practical is best.

But my core…my core tells me it would be a real butter popcorn moment watching all the lightning clear away the corruption of mind and flesh.

This republic was not established by cowards; and cowards will not preserve it. ~~Elmer Davis

I am stone forged from the fires of creation into flesh ~~Pamela1631

The greatest civilization is one where all citizens are equally armed and can only be persuaded, never forced.~~Maj. L. Caudill, USMC (Ret.)

The Concord Project: Fighting for Freedom in the Fall

Benito Obama is calling?
Regardless, no sooner do the taxes go up, then, bet on it, spending will jump up immediately. After all, the government does have to create jobs, doesn’t it?
And then, but you all know how the story goes after that.

Limbaugh was reading from the ATR doc today on his show. I know he keeps an eye on RS, so it’s possible he saw your diary after we fronted it.

always have a sunset! There is problem here folks and it isn’t just the Democrats!

Changes in charitable donations and higher percentages of income required for medical deductions on long form returns.

Hopefully, you don’t mind too much…

Seventh, tax increases. Our friend Veronica laid it out pretty nicely here, Joe. However, suffice it to say, with your looming tax increases right around the corner, Veronica and her family are but a microcosm of the rest of America: We’ve all become risk averse.

http://www.redstate.com/laborunionreport/2010/07/03/a-letter-to-our-nations-central-planners-on-americas-risk-aversion/

Thanks everyone for your comments. I’ve just forwarded a link to this to a long list of people.

I’m the most optimistic, cheerful guy you’ll ever meet, but for the last year+, I’ve been in serious hunker down mode. Selling real estate holdings, restructuring portfolios, reducing debt, getting more liquid, stocking the shelves, etc. There is just no reason to believe that we are anywhere near the bottom (contrary to the hopeful but clueless and dimwitted parrots in the MSM). The far more likely scenario is the bleak negativity that is almost certainly unavoidable at this stage. We have some tough years ahead of us. Nothing we can’t come out of eventually, but it will be tough for at least the next two (hopefully last two!) years of the Obama disaster, but also for at least the next two years following that while we try to stop the bleeding and right the ship. The first two years of Reagan were very ugly and difficult. We’ve got to go through the same difficulty before we are anywhere near to a real recovery, and we haven’t even bottomed out yet. Hang on. It’s going to be a real Z ticket ride.

If we get Obama for another term. . . . . Oh my, I can’t even make myself consider such an absolute disaster.

For starters, we must ALL do everything we can to replace any and all Democrats this November. We MUST remove Pelosi from the Speaker position, and restore at least some sense of balance back into congress, or they will assuredly spend us off a cliff in the next two years. The only way to turn the tide is to put the Dems into the minority. So, so, so very critical. The GOP is hardly any better, but for now, they are surely the far lesser of the two evils.

The time is now, or there may not be anything left for tomorrow. We must be engaged, and enlist those around us.

Best wishes to all!