If Romney Wins, Will Democrats Try To Sink His Presidency With Tax Hikes

I don't know if you know it or not but, January 1, 2013 is being not-so-lovingly referred to as "Taxageddon".  That's because, on that date, Americans will be hit with the largest total tax increase in the history of the union.

Right up front, the Bush tax cuts are set to expire; meaning that people in the lowest tax brackets -- the people who benefited most from the Bush tax cuts -- could see their tax rate rise by 50%.  Most all other Americans will see tax increases of around 12%.  Additionally, taxes will go up for any income from interest and dividends, and for capital gains.  The child tax credit will fall back to $500 from the current $1000 per child level. The marriage penalty will be back.  At the same time, the $5 million estate/inheritance tax exemption will slide back to a million dollars; meaning that, once again, many small business will either change hands or go belly up in order to pay Uncle Sam.

The tax fury doesn't just stop there.  A number of tax increases that are associated with ObamaCare are to take effect on that very same "Taxageddon" date.   Individuals making $200,000 and marrieds making $250,000 will be hit with a 0.9% tax increase to fund the new health care law.  At the same time, if those $200,000/$250,000 tax bracketers should sell property and make a profit, they will be hit with a federal 3.8% surcharge on those profits; whereas today, they would pay no tax at all.   Also as of January 1, medical devices will be hit with a 2.3% excise tax for any device selling for more than $100. Even Granny's wheelchair won't escape this tax.

The reality of the above taxes is simple: If all of the above go into effect as scheduled, it would send our economy into a tailspin -- basically, into another recession.  Surely, the Democrats wouldn't want that to happen if Obama is elected.  So, my guess is that they will gladly join the Republicans to extend the Bush tax cuts for another year or two.

But, what if Romney beats Obama? What, then?  Would the Democrats go so far as to allow the Bush tax cuts to expire?  Would they actually do that to sink the economy and a Romney presidency with it?  Of course, if the Bush tax cuts did expire, the Democrats would make it seem like it was the Republicans who made it happen.  My guess is that the Democrats would fight to keep the cuts for the middle and lower classes; forcing the Republicans to squabble over tax cuts for the rich.  In the process of being at odds with each other, common ground won't be found and the Bush cuts will expire. In typical fashion, the Democrats will blame the Republicans because the Republicans, as usual, were only for tax cuts for the rich.  We'll just have to wait an see.