By William Brown (Tax Attorney Des Moines, Iowa.)
Today I prepared the 2012 tax return for one of my clients who owns a successful Iowa small business. The taxes for the year were substantial. As a lark, I decided to figure out how much his federal tax bill would be in 2013 if his income and expenditures were exactly the same as in 2012. I was floored by the increase in his 2013 taxes as compared to 2012.
Fred, who has $550,000 of gross income for tax purposes, in fact only has $73,650 to live on after taxes.
Obama Taxes 2013– consisting of an increase in federal income taxes of $9,800, an increase in his withheld FICA tax of $2,000 and imposition of a new Medicare tax on his reinvested dividends under Obamacare of $1,900. His total federal and state tax bill is now $200,050 – consisting of $155,500 of federal income tax, $7,650 of withheld FICA tax on his salary, a new Obamacare tax on his reinvested dividends of $1,900, and $35,000 of state income tax. Fred’s net disposable income will then be reduced to $59,950.
President Obama wants further tax increases on the “wealthy” as part of the solution to avoid the sequester. His solutions are a recipe for damage to the successful small businesses that are the engines of job growth and economic prosperity in this country. These solutions will likely guarantee continued economic stagnation for America because of their affect on successful small businesses.To Read How this works go to –http://theiowarepublican.com/2013/just-a-little-bit-more-get-ready-to-pay-more-taxes-in-2013/