Skip to comments.One Year to Go Until Largest Tax Hikes in History
Posted on 12/14/2011 10:47:51 AM PST by 92nina
...First Wave: Expiration of 2001 and 2003 Tax Relief
In 2001 and 2003, the GOP Congress enacted several tax cuts for small business owners, families, and investors (later re-upped by President Obama and Democrat Congress in 2010). The following tax hikes will occur on January 1, 2013:
Personal income tax rates will rise. The top income tax rate will rise from 35 to 39.6 percent (this is also the rate at which the majority of small business profits are taxed). The lowest rate will rise from 10 to 15 percent. All the rates in between will also rise. Itemized deductions and personal exemptions will again phase out, which has the same mathematical effect as higher marginal tax rates. The full list of marginal rate hikes is below:
- The 10% bracket rises to a new and expanded 15% - The 25% bracket rises to 28% - The 28% bracket rises to 31% - The 33% bracket rises to 36% - The 35% bracket rises to 39.6%
Higher taxes on marriage and family. The marriage penalty (narrower tax brackets for married couples) will return from the first dollar of taxable income. The child tax credit will be cut in half from $1000 to $500 per child. The standard deduction will no longer be doubled for married couples relative to the single level.
Middle Class Death Tax. The death tax is currently 35% with an exemption of $5 million ($10 million for married couples). For those dying on or after January 1 2013, there is a 55 percent top death tax rate on estates over $1 million. A person leaving behind two homes and a retirement account could easily pass along a death tax bill to their loved ones...
Read more: http://www.atr.org/one-largest-tax-hikes-history-a6646
(Excerpt) Read more at atr.org ...
In one way I kind of want it to go up, so we can get a flatter tax. If the lowest rate goes up to 15% it makes it easier to go for a flat 15% tax...that way we aren’t raising taxes on the poor. That will be Obama’s fault.
I can’t say that I agree with you. But I do think that when Bush 43 had a friendly Congress at the start of his 2nd term, he should have fought to make those rates permanent.
Another reason to let Obama win the 2012 election. They’ll go into effect on his watch! And who can he blame for this one? Bush? LOL!!!