So far, Obamanomics has produced the worst recovery from a recession since the Great Depression. But if Obamanomics is not stopped, next year it will produce renewed recession.
Unemployment will consequently soar back into double digits, and the deficit will rocket to over $2 trillion, the highest by far in world history, as revenues plunge with the economy in the face of escalating public assistance expenditures. That will further explode the national debt, steering us on to the expressway to Greece.
President Obama has already enacted into current law effective Jan. 1 increases in the top tax rates of virtually every major federal tax. That is because the tax increases of ObamaCare go into effect, and the Bush tax cuts expire, which Obama refuses to renew for the nation’s successful small businesses, job creators and investors.
As a result, on Jan. 1 the top two income-tax rates will rise by nearly 20%, the capital gains tax rate will soar by nearly 60%, the tax rate on dividends will nearly triple, the Medicare payroll tax rate will rocket 62% and the death tax will rise from the grave with a 57% tax-rate increase.
That is all on top of the highest corporate income-tax rate in the world (except for the socialist one-party state of Cameroon) under Obama at nearly 40% on average counting state rates.
Yet, under Obama there is no relief in sight. Instead, he has barnstormed the country calling for still more tax increases.
Cost Of Regulation
Under his so-called Buffett rule, the capital gains tax rate would explode by 100%, to the fourth-highest in the world, even though every time the capital gains tax rate has been raised in the last 45 years capital gains revenues have fallen. The objective fact is that people faced with high capital gains taxes simply stop making transactions and the revenue falls rather than rises.
Tax increases aren’t enough damage for this administration. Obama is also busily building a crescendo of increased regulatory costs for next year.