Obama’s new taxes and rising food prices

Many people believed the President was going to make their lives better. They are learning that he was not honest about the promises he made. Everyone believed he was going to make their health care so much better and cost so much less than they were currently paying for insurance.

Reality is hitting people hard and they are confused and upset. They should be. So many of us tried to warn them that nothing is free and that Obama speaks words people want to hear, but has an agenda that cares little about the struggles of everyday people.

There will be a new tax for manufacturers of medical devices. A 2.3% excise tax on their total revenue will mean that customers will pay more for x-rays, MRI, crutches and other medical aids. There will be a 3.8% increase in taxes on unearned income, such as your investment in your 401k, interest on your savings account and on dividends earned.

If you itemize your deductions, you can’t claim any health expenses unless they exceed your income by 10%, up from 7.5%. Contributions to your church or other charity will not be deductable in 2013.

The average person or household earning $10,000 will see a tax increase of about $300 in 2013. A family of four making $50,000 a year will pay about $3,000 extra in taxes this year. The Bush tax cuts will expire, increasing the amount of taxes everyone will pay.

Everyone will be forced to buy a health insurance policy that Obama will approve or disapprove. If your policy is disapproved, you will have to buy a more expensive policy or pay a penalty(higher taxes – maybe one or two thousand dollars higher).

Food prices will be rising due to a number of factors. Milk is rumored to increase to $10 a gallon. If this happens, every food item that contains milk will rise relative to the price of milk.

My best advice is to buy extra food to put in the cabinets, pantries and freezers. Look for household expenses that can be eliminated. Entertainment is a big expense that may have to be sacrificed. Look for less expensive phone plans to switch to. Check insurance and compare to other companies to find a lower price.

If you wait and see, it will be too late. Lowering your expenses can only be a good thing, no matter what is coming through the pipeline of economics. Keep an eye open and ear to the ground. Something wicked this way comes.


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