You knew it was coming regardless of whether the politicians would promise it will not happen. Taxes are going up. After all, someone need to pay for Nancy Pelosi’s $18,000 plus a month office expense (yes, I said monthly expense) Someone needs to pay for the 469 White House employees who have a 38 million dollar payroll that averages out to around $82,000 an employee (boy, must be nice working for the Government).

Yes, unless the politicians do something, the Bush tax cuts are going to come to an end and taxes on EVERYONE will go up. Let’s look at a few of a long list. First, everyone will pay more taxes due to their tax bracket going up.

35% bracket will increase to 39.6%
33% bracket will increase to 36%
28% bracket will increase to 31%
25% bracket will increase to 28%
10% bracket will increase to 15%

Child deductions will decrease from $1,000 to $500. Capital gains rate will increase to 20%. Taxes on dividends will increase top 39.6% from 15%.

The best part is the long list of taxes because of Obamacare. My favorite is the new tax that will be imposed on employer paid healthcare premiums. If your employer is paying any part of your healthcare premiums, that benefit will be included as W-2 income for your taxes.

Oh and the news just continues to get better…

So what do you do? We are talking about this on the Prudent Money Radio Show – Prepare today so that you are prepared for tomorrow. You don’t have to like what the politicians are doing. However, unless they make a change prior to the end of the year, we are stuck with these tax hikes. It makes more sense to be prepared just in case it becomes a reality.

Tags: Bob Brooks, healthcare, Obamacare, politicians, tax hikes