Posted on 07/01/2010 5:43:50 AM PDT by tobyhill
Remember, Reid will make sure the lowest bracket tax cut (from 15% to 10%) remains in place. But the AMT fix is unlikely to be renewed, and they will not only let the other tax cuts expire, they will let bracket creep come into play.
But the first hammer to fall is going to be health insurance open enrollment this fall. Everybody's rates will have to go up to support the costs of the early requirements of Obamacare, to include the elimination of pre-existing conditions and the mandate to cover 26-year old infants still living with their parents.
Some of these costs will be passed on to the employee, which, along with the tax changes, means the middle class will get hammered.
The effect on take-home pay will likely be similar to that of a variable mortgage reset. We may see a second wave of financial problems strike the middle class as 10% of their take home pay disappears due to tax increases and health insurance cost increases.
June figure... +6.0%
July figure (forecast)... -7.4% (that in itself would have made this month the 3rd worst month on record)
July figures (actual... -30.0% (a new world record, by far)
Even the biggest economic pessimists got blindsided on that figure!
Our economy is plunging into deep and turbulent waters...
We got community organizer night at the Apollo....
Jesus just left Chicago. He’s bound for New Orleans.
And the health insurance rate increase will be misrepresented.
It will described as a greedy move by evil health insurance companies to make obscene profits while they can.
It will used as an example as to why we need to accelerate Obamacare - and they will promise that rates will decrease when that happens. And then they won’t of course.
And stupid people everywhere will believe it.
LOL
VP Biden promised us just weeks ago that the economy would generate 500,000 jobs for four consecutive months. For May and June, he is roughly 900,000 jobs short.
Anybody remember the weekend b4 the 2004 election? The media was licking its chops to destroy Bush if the economy didn’t create more than 100,000 jobs that October. The looks of horror and disappointment from the MSM when the economy created 169,000 jobs that month was a sight to remember.
I’m tired of the constant MSM cheerleding for our affirmative action President. At some point this unexpected crap has to cease and the coverage turn harsh. The unexpected given this track record should be GOOD economic news.
It’s unbelievable how they cover for this economic illiterate.
"It will described as a greedy move by evil health insurance companies to make obscene profits while they can."
You are absolutely correct, but I think the fact open enrollment happens just before the November elections means they will not have enough time to spin this to their favor. They would need to lay the groundwork now, and I don't see it happening. I just don't think they know enough about how business works to see this train coming.
I really think this could rile people to the levels of last year's Tea Parties. It might be the straw that gets people out to the polls to vote the bums out.
If we swing the congress and senate significantly this election, the health insurance cost increases and the tax increases will be felt in 2011, and the potential of a double-dip recession could play as well in 2011. The effect could be another electoral sweep in 2012.
I'd buy a couple
In a zone.....
” [Team Obama will make sure the numbers are juggled so as not to rise to 10% or above.]”
And the MSM will not point out that the stimulus was needed to prevent 8%
21% variance..... In most businesses an ultimate reality check that things did not work.
In Washington a chance to change the focus............
Bump
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