– The Foundry: Conservative Policy News Blog from The Heritage Foundation – http://blog.heritage.org –
These 13 Tax Increases Hit in 2013
Posted By Curtis Dubay On December 31, 2013 @ 6:30 am In Economics,Front Page,Obamacare | No Comments
It’s about time for us to uncover our eyes and take a hard look at what 2013 did to our finances.
Did you feel the pinch of the 13 tax hikes that hit Americans this year?
Before you review the list below, put these two on your watch list for 2014:
- Obamacare’s individual mandate. Beginning in 2014, it’s mandatory to purchase health insurance. If you don’t, you’ll pay a penalty that dramatically increases over time. It starts at $95 or 1 percent of your income (whichever is greater). It rises to $325 or 2 percent of income in 2015, and $695 or 2.5 percent of income in 2016.
- Obamacare tax on insurance companies. If you liked seeing your premiums go up, you’ll love this new tax on health insurers—which they are most likely to pass on to you.
As you start reviewing your tax information for 2013, here’s what you’re contending with.
The 13 Tax Increases of 2013
1. Payroll Tax : increase in the Social Security portion of the payroll tax  from 4.2 percent to 6.2 percent for workers. This hit all Americans earning a paycheck—not just the “wealthy.” For example, The Wall Street Journal calculated that the “typical U.S. family earning $50,000 a year” would lose “an annual income boost of $1,000 .”
2. Top marginal tax rate: increase from 35 percent to 39.6 percent  for taxable incomes over $450,000 ($400,000 for single filers).
3. Phase out of personal exemptions for adjusted gross income (AGI) over $300,000 ($250,000 for single filers).
4. Phase down of itemized deductions for AGI over $300,000 ($250,000 for single filers).
5. Tax rates on investment: increase in the rate on dividends and capital gains from 15 percent to 20 percent for taxable incomes over $450,000 ($400,000 for single filers).
6. Death tax: increase in the rate (on estates  larger than $5 million) from 35 percent to 40 percent.
7. Taxes on business investment: expiration of full expensing—the immediate deduction of capital purchases  by businesses.
Obamacare tax increases that took effect:
8. Another investment tax increase: 3.8 percent surtax on investment income  for taxpayers with taxable income exceeding $250,000 ($200,000 for singles).
9. Another payroll tax hike: 0.9 percent increase in the Hospital Insurance portion of the payroll tax  for incomes over $250,000 ($200,000 for single filers).
10. Medical device tax: 2.3 percent excise tax paid by medical device  manufacturers and importers on all their sales.
11. Reducing the income tax deduction for individuals’ medical expenses .
12. Elimination of the corporate income tax deduction for expenses related to the Medicare Part D subsidy .
President Obama demanded these higher taxes, but they did nothing to address the actual cause of our deficit and debt problem: too much spending. The proper way to address this problem is through reforms to entitlement programs .
President Obama promised the American people a “balanced approach” of tax increases and spending cuts to reduce deficits and debt. He achieved the tax increase portion of that approach. Now Congress needs to force him to follow through on the spending cuts.
Read the Morning Bell and more en español every day at Heritage Libertad .
- Let’s make 2014 a big year for conservatives. Now is the time to press the advantage: Find out how. 
- “How is this helping the average American that’s working 40 to 50 hours per week?” Hear how Obamacare is hitting workers at this auto dealership in Michigan .
- Congress had some trouble cutting spending in 2013. This video  shows some of the items they “couldn’t” cut.
- Our Top 5 most popular images of 2013 include JFK and Senator Ted Cruz (R-TX). Is your favorite on this list ?
- Bookmark and use this report when you need to debunk arguments against a market-driven health care system.
Article printed from The Foundry: Conservative Policy News Blog from The Heritage Foundation: http://blog.heritage.org
URL to article: http://blog.heritage.org/2013/12/31/13-tax-increases-hit-2013/
URLs in this post:
 Payroll Tax: http://www.heritage.org/issues/taxes/payroll-taxes
 Social Security portion of the payroll tax: http://www.heritage.org/research/reports/2012/06/what-is-payroll-tax-hike-four-basic-facts
 annual income boost of $1,000: http://blogs.wsj.com/economics/2013/01/01/payroll-tax-cut-expires-how-much-more-will-you-pay/
 35 percent to 39.6 percent: http://blog.heritage.org/2013/01/01/congressional-budget-office-shows-senate-bill-is-600-billion-tax-hike/
 deduction of capital purchases: http://www.candidatebriefing.com/taxes/
 Hospital Insurance portion of the payroll tax: http://www.heritage.org/research/reports/2011/01/obamacare-and-new-taxes-destroying-jobs-and-the-economy
 for individuals’ medical expenses: http://blog.heritage.org/2012/04/18/top-10-most-expensive-obamacare-taxes-and-fees/
 Medicare Part D subsidy: http://www.heritage.org/research/reports/2012/06/delaying-obamacare-tax-increases-key-part-of-stopping-taxmageddon
 income tax: http://www.heritage.org/issues/taxes
 through reforms to entitlement programs: http://www.heritage.org/research/reports/2012/11/six-bipartisan-entitlement-reforms-to-solve-the-real-fiscal-crisis-only-presidential-leadership-is-needed
 Heritage Libertad: http://www.libertad.org/
 Find out how.: https://www.joinheritage.org/year-end/short.php?utm_content=quickhits
 Hear how Obamacare is hitting workers at this auto dealership in Michigan: http://investigations.nbcnews.com/_news/2013/12/29/21893911-workers-at-auto-dealership-come-face-to-face-with-obamacare-trade-offs
 This video: http://www.youtube.com/watch?v=hSwBz1nplI4
 this list: http://blog.heritage.org/2013/12/30/5-viral-images-2013/