Taxmageddon.

We have four questions to answer: 1. What is the size of the tax increase coming Jan 1? 2. Are Obama and the Democrats interested in preventing it? 3. Who will get the blame? and 4. What is the "Obama Plan?"

Q1. Hard to estimate the actual increases in taxes that will start Jan 1. Here are some increases:
1. A 2% increase in FICA taxes;
2. Cap gains will go up significantly, for some people as much as double;
3. Personal rates will go up above 35K/y;
4. Inheritance taxes will cut in at $1M and go from 35% to 55%;
5. Alternative minimum tax will be invoked for 33M people as opposed to 7M now;
6. Medicare taxes will increase;
7. There will be new Medicare taxes

There will be numerous taxes on business that will go up, including Obamacare.

Q2. Are the Democrats interested in avoiding the Fiscal Cliff? The answer to that is a resounding NO!. The Dems have avoided every proposal advanced by the hapless Boner. The Fiscal Cliff will increase taxes and allow the government to control an even larger percentage of the Nation's income. A majority of Democrats (53%) think Socialism is OK and they want it.

Q3. Who will get the blame? Easy. The Republicans.

Q4. Imagine that the Deficit is like having a Hurricane Sandy every two weeks. Obama's plan will prevent two of those hurricanes, under the best assumptions. What will rally happen? Increasing taxes by 10% will not increase revenues by ten percent. First, because people will turn to schemes to reduces their taxes. This will slow the economy. And the slower the economy, the lower the tax take will be. If the Obama solution is ,implemented, the deficit will go up. The problem is that the Media is allowing the Dems to demagogue and lie through their teeth AND the GOP is helpless in explaining its case. Blacks and Hispanics are happy to stick it to us and besides they do not understand anything about economics and taxes.