New Tax Increases

Economists might disagree about the exact formula for restoring growth but few would support the massive tax hikes coming our way. Starting next year the top marginal bracket increases by 13% (from 35% to 39.6%). Capital gain tax rates increase by one-third (15% to 20%) but once the new health care law unfolds will bump up another 3.8% for a total % increase of 59%! Also, the Medicare tax rate will also move higher by 62%. My guess is even with all of this we are looking square in the face of a national sales tax or VAT to pay for this new entitlement.