Posted on 06/20/2012 4:10:49 AM PDT by SeekAndFind
Imagine if your taxes tripled — literally overnight.
The so-called Bush tax cuts are set to expire at the end of the year. That means that all of the current income tax rates will rise to pre-2001 levels overnight. The lowest rate will jump from 10% to 15% and the highest from 35% to 39.6%. Although Congress extended all of the cuts at the end of last year, some Democrats have pledged to let the tax cuts expire for the "rich" — individuals making $200,000, and $250,000 for families.
Pre-2001, dividends had been taxed at workers' income tax rate. The Bush tax cuts dropped the rate on dividends and capital gains to 15%. Thus, if the Bush tax cuts expire, the dividend tax for high-income workers will jump to 39.6%.
But there's more. The health care law imposes a new 3.8% tax on passive income, including dividends and interest. So the effective dividend tax rate for those at the upper end of the income scale would nearly triple, to 43.4%. Happy New Year!
And don't forget that dividends have already been taxed as corporate profits — so they're taxed twice.
Although proponents claim that these tax increases will only affect the wealthy, this looming tax grab will also have a significant impact on middle-class Americans who don't have to pay it directly. And the impact could weaken America's fragile financial markets further and unintentionally erode the value of the savings of millions of Americans.
Dividend taxes in the U.S. are already high. A recent study by the accounting firm Ernst & Young looked at the integrated cost of corporate taxes and dividend taxes. The study found the U.S. currently has the fourth-highest integrated dividend tax rate among the 34 Organization for Economic Cooperation and Development (OECD) nations.
(Excerpt) Read more at news.investors.com ...
God I hate Obama & Co.
A family making $250K is hardly RICH.
The one change I see having occurred over four years...is that we’ve really become a class-society. Everyone is putting themselves and others....into classes. Back a decade ago....I would say $250k a year was pretty rich in nature. Now? A smart small business man ought to be able to bring home $250k if he’s got a great business going along. Is he rich? I really can’t say that anymore....especially with house prices in some areas standing at $400k.
I notice you said, “bring home $250k.” Of course, the $250k is *before* taxes, not after. These “rich” folks are bringing home only half of that $250k.
The Mayans nailed it. For the democrats.
http://www.heritage.org/issues/taxes/taxmageddon?query=Taxmageddon
Heritage analysis of coming tax hikes
The CBO is basing budget assumptions on a
$500BILLION tax increase next year alone.
http://www.cbo.gov/publication/43262
The democrats couldnt raise that much if they raised taxes on “the rich” to 100%
THEN obamacare really kicks in in 2014. By 2015 taxes are up over a TRILLION.
Yo Harry Reid, that’s a clown budget, bro
http://www.heritage.org/issues/taxes/taxmageddon?query=Taxmageddon
Heritage analysis of coming tax hikes
The CBO is basing budget assumptions on a
$500BILLION tax increase next year alone.
http://www.cbo.gov/publication/43262
The democrats couldnt raise that much if they raised taxes on “the rich” to 100%
THEN obamacare really kicks in in 2014. By 2015 taxes are up over a TRILLION.
Yo Harry Reid, that’s a clown budget, bro
The obamacare 3.8% passive income tax also applies to the sale of a house.
More govt “help” for the housing industry.
When that happens....my business “downsizes” by 20%. Has to.
http://www.cbo.gov/sites/default/files/cbofiles/attachments/03-16-APB1.pdf
page 5, projected gov “revenues” (our wealth, taxed) and spending through the next decade
see what harry reid et al have in store for us
Imagine if they repeal ALL the Bush tax cuts. All the income tax credits for low wage earners disappear. Suddenly the 50% who pay no tax will be taxed. Now THAT is what the PUBs should be hammering.
If they had a pair.
Rush had a woman caller the other day who said she has a business with 200 employees.
The woman said that if Obama is re-elected, she is going to shut down her business entirely.
Regardless, the idea of some bloated, arrogant congress critter thinking he's entitled to 1/3 to 1/2 of my paycheck makes my blood boil. Most people who make that kind of money are working extremely hard for it.
Has anyone ever seen a list of liberals who have voluntarily paid the tax increment between the current rates and the pre-Bush rates?
I mean they talk all the time about fairness, right?
In the article it’s talking about individuals making $250,000. Not businesses..
Do the punish the rich extend to the president, vp, senate and house? or soros?
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