Now that Barack Obama has won re-election, and the Democrats have strengthened their hold on the Senate, taxes will go up on January 1. The Republicans have lost seats in the Senate and cannot stop any of Obama's legislation. And after tonight's shellacking, I don't expect them to try. I wouldn't if I were them. Why bother? If they try to stand up for ordinary Americans, they will be demonized in the press and they obviously lack the spine - they didn't even nail the president on his many failures during his first term. But this means that Americans will face a massive tax increase. All the Bush tax cuts will expire and not only that, ObamaCare's taxes kick in on January 1 as well. So we are facing the largest tax hike in US history. Thanks, Nancy Pelosi, Harry Reid and Barack Obama!
So, what will this tax hike entail? No one knows for sure, but CNBC says that most Americas will see their investment taxes rise by approximately 3.8 percent. In addition, CNBC says that with the expiration of the Bush tax cuts, that means wealthy Americans will see those taxes rise by close to 45 percent.
But that is not all. As Daily Finance.com points out, the expiration of the afore-mentioned Bush tax cuts also means that the average US family will pay 15 percent more in taxes immediately - in addition to those massive investment income tax hikes.
So, get ready for a much higher tax bill in 2013. Thanks to Barack Obama and the Democratic Congress of 2007-2010, it's coming. The only question is whether or not the Democrats will reach for even more tax hikes as well. Personally, I wouldn't bet against it. After all, as Obama famously said in 2009, 'I won."