By now that first electric bill of the year has arrived!

Published: January 31, 2010

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By now that first electric bill of the year has arrived. Opening up that dreaded envelope was a shock that was anything but static; it was more of a jolt straight from the socket. Once my hair receded back in place after doing its best Don King impression, it was hard not to wonder if Uncle Fester is available as a reading lamp.

You can't say we weren't forewarned and even urged, if not begged, to shop around. But such warnings, no matter how encouraging in purpose or long in duration, still come with their initial sticker shock.

As that first electric charge was coming in heavy, that first paycheck of the year was tipping in light. Why? According to the Tax Foundation, since the dawning of the New Year, nearly 70 new taxes have been levied on those still able to cash a paycheck and on the small businesses that employ most of us. Sadly, most people probably didn't realize it until after receiving that first check.

You may be thinking - didn't Obama say he wouldn't raise taxes? However, such political legerdemain belongs to the Congress as they are the folks who ultimately have the power to tax. Congress failed miserably in preventing the expiration of many fundamental tax breaks before 2009 ended.

This year, 2010, might be the year of the Tiger in China, but in the U.S., it's the year of the tax increase - a liberal politician's dream. The only problem is the money has already been spent. Ultimately, the taxpayer has to pick up the tab, as the government desperately needs increased revenue. You didn't think the exploding national debt and the stimulus were freebees, did you?

Then there is the annual event that sets January apart, besides the NFL playoffs and Penn State not playing in the BCS title game. That is your "1040 forms and instructions" dutifully arriving in the U.S. mail. This once magazine-sized booklet is now bounded like a college textbook as it keeps pace with the ever-expanding federal tax code. Somehow I don't believe the additional thickness will save the average taxpayer any money.

If you wanted to know what's wrong with the federal tax code, all you had to do was tune in to C-SPAN's "Newsmakers" program earlier this month when they interviewed IRS Commissioner Douglas Shulman. In one concise sentence, Shulman summarized quite nicely by stating he doesn't prepare his own taxes because he finds the tax code "complex" and therefore uses a preparer.

The Tax Foundation reports at least 25 million middle-class Americans will get hit with the alternative minimum tax (AMT). According to the Senate Finance Committee, this tax will collect $63 billion from American families with a household income of $75,000. This will affect nurses, school teachers, construction workers and corrections officers. I suppose you can call them the "new rich." Originally the ATM was designed to tax multi-millionaires. In addition, the federal tax deduction for college tuition and fees is history, translating into an additional $1.5 billion tax on all those rich college students.

The 50 percent write-off for small businesses for capital purchases is now over. Without those tax incentives, small businesses, which are the job creation engine in this country, are less likely to reinvest capital in their operations. This means less employment opportunities and fewer pay raises. A study by the National Center for Policy Analysis found that about 90 percent of the benefits from capital investment find its way to workers in the form of higher wages due to increased productivity.

Some additional taxes the Congress is considering include raising the federal gas tax five cents; a new luxury tax on autos, boats and other assorted toys; and a retirement plan tax where there was none before. Then there is the dreaded value-added tax, which would be a major burden on everyone across the board, and especially what's left of the middle class. Given space constraints, this is just a brief sample of a laundry list of proposed tax increases.

What the 535 members of Congress would be foolish to dismiss is that ramming more taxes through during difficult economic times will only serve to throw gas on an already glowing fire "to throw them bums out." Such an opportunity will present itself in November's general election. If the recent election in Massachusetts is any indication of future events, the Democratic-controlled Congress could be in for a short run.

Maresca, a local freelance writer, composes "Talking Points" for each Sunday edition.)

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