Soon, January 1st to be precise, a number of new taxes on America’s most productive citizens will go into effect.
Obamacare punishes these folks with two actual taxes, a surcharge of 5% on investment income, and 3.8% on salary, plus the “Roberts Tax”, a penalty of $2,000 or more for every employee over 35 full time equivalents.
Additionally, these same targets of success envy will see their marginal income tax rate balloon to 39% from 35% (over a 10% increase), and in all likelihood capital gains and dividend tax increases too. Hundreds of billions of dollars more will be squeezed from a figurative handful of Americans, under the incredible belief that it will have no negative consequences. To quote the Coach however, “Not so fast my friend”.
The first thing to realize is that both money and people are fungible, they can be here today and quite somewhere else tomorrow. (Check what happened in Ireland when they passed a “Billionaire’s Tax”.) Getting screwed over by Uncle Sam? Open a business in Panama, Hong Kong, or a dozen other places and simply do not repatriate the profits. (Big companies have been doing this for years to escape the highest corporate tax rate in the world, and consequentially taking good paying jobs with them as well.)
Secondly, these people are under no obligation, moral or otherwise, to bite the progressive bullet. Workers can be fired, salaries of those remaining frozen, and prices to consumers raised. Make no mistake about it, all three will happen. All three should happen.
Which brings me to my modest proposal… Rather than just raise prices three, four, or five percent to cover the costs associated with the new taxes, I propose that every business whose owners, executives, investors, etc. have been targeted by these unconscionable attacks add a new line to their invoices, food checks, bills of sale, and the like which reads: “Obamacare and Tax Increase Surcharge”, listing the upcharge separately and prominently.
People need to learn (and should be constantly reminded) that decisions, including votes, have a consequence, that they are now paying for their election day decisions, and they will continue to pay for them for a very long time.