Barack Obama already bragging about tax increases

Barack Obama is making it clear to Americans that one of his big priorities will be raising taxes. And lots of people don't seem to mind, so long as the increased taxes aren't being paid by them.

The problem with increased taxes is that it discourages people from making money. If you're in a tax bracket that just went up a lot, why would you work harder or invest money to expand a business? If you're successful, a bigger chunk goes to the government. If you're not successful, bye-bye investment.

What kind of increase are we talking about? Obama's bright idea is to raise Social Security taxes on the wealthy. After all, the wealthy already pay a very large proportion of the total tax burden, so let's stick them with more taxes! Currently, Social Security taxes are 6.2% on wages up to $102,000. This amount is paid by the employee, and the same amount is paid by the employer, for total Social Security taxes of 12.4%. Social Security isn't paid on wages over $102,000. Obama says that those making $250,000 or more shouldn't stop paying Social Security, and should pay it on all their wages.This is projected to raise $600 billion over 10 years. And it sounds fun to penalize the rich even more, but our tax laws are grossly unfair. Today, the top tax rate for the rich is at 37.9% of income when you figure in all the federal taxes on income. This would go up to 50.3% of income under Obama's plan. That's just ridiculous, and not fair. I don't care how much "the rich" are making. It's simply not fair for the government to forcibly take away that much of their money.

Increased taxes hurt our economy. Politicians shouldn't be looking for ways to increase taxes. They should be looking for ways to decrease spending and decrease taxes, putting more money in the pockets of taxpayers so they can choose how to spend it.

Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.

The 10 Most Overlooked Tax Deductions

Don't overpay taxes by overlooking these tax deductions. See the 10 most common deductions taxpayers miss on their tax returns so you can keep more money in your pocket.

Read More

Brought to you by TurboTax.com

How to Find a Good CPA for Your Taxes

Finding a good CPA for your taxes is simple with these seven tips: 1. Ask about their specialization; 2. Verify their identification number, 3. Look up their license, 4. Consider their experience, 5. Confirm their willingness to sign, 6. Ask for advice, and 7. Determine their fees.

Read More

Brought to you by TurboTax.com

Reporting Self-Employment Business Income and Deductions

Self-employed taxpayers report their business income and expenses on Schedule C. TurboTax can help make the job easier.

Read More

Brought to you by TurboTax.com

2018 Tax Reform Impact: What You Should Know

Congress has passed the largest piece of tax reform legislation in more than three decades. The bill went into place on January 1, 2018, which means that it will affect the taxes of most taxpayers for the 2018 tax year.

Read More

Brought to you by TurboTax.com
Read Full Story
Your resource on tax filing
Tax season is here! Check out the Tax Center on AOL Finance for all the tips and tools you need to maximize your return.