Posted on 07/01/2010 9:37:59 PM PDT by GVnana
In just six months, the largest tax hikes in the history of America will take effect. They will hit families and small businesses in three great waves on January 1, 2011:
First Wave: Expiration of 2001 and 2003 Tax Relief
In 2001 and 2003, the GOP Congress enacted several tax cuts for investors, small business owners, and families. These will all expire on January 1, 2011:
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 two-thirds 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 an 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%
-snip-
Second Wave: Obamacare
There are over twenty new or higher taxes in Obamacare. Several will first go into effect on January 1, 2011. They include:
The “Medicine Cabinet Tax” Thanks to Obamacare, Americans will no longer be able to use health savings account (HSA), flexible spending account (FSA), or health reimbursement (HRA) pre-tax dollars to purchase non-prescription, over-the-counter medicines (except insulin).
The “Special Needs Kids Tax” This provision of Obamacare imposes a cap on flexible spending accounts (FSAs) of $2500 (Currently, there is no federal government limit). There is one group of FSA owners for whom this new cap will be particularly cruel ...
Read more: http://www.atr.org/six-months-untilbr-largest-tax-hikes-a5171##ixzz0sUp9icei
(Excerpt) Read more at atr.org ...
The American people may be so poor by then that they never know what happened. At any rate, they asked for all of this!
Better take those quarters and dimes out of the picture because oilbummer is taking those to!
This will be AWESOME! And make the economy SO MUCH BETTER!
Hubby and I were crunching numbers tonight, talking about job transitioning, and I had to remind him that we can’t really work with this year’s numbers, because of the sunset of Bush’s tax cuts. We were married in December of 2001, so we haven’t ever had to deal with the marriage penalty. Fun.
You forgot dreams - he wants your dreams too ... and if he can't get them, he wants to tax them !!!
I really don’t think the elections this November are going to matter one bit.
Prepare!
Obama will say it’s to lower the deficit.
Hold the phone!!!! I thought the Bush tax cuts were only for the rich!!! What’s going on here?
Cheers!
And simultaneously the threshold for deducting medical expenses is going from 7.5% to 10% of AGI.
Thank you Mr. President.
I agree with you. Not sure if this is exactly your thinking, but I see a very large bill to be paid. We may not have been in favor of the bad policies that created the looming fiscal crisis, but like it or not it is ours to deal with. If we are past the tipping point, no party is going to be able to fix it.
Again, not sure if that is your exact point. Take this as an extension of the discussion.
R-E-V-O-L-T-!
I could tolerate a little higher taxes but not for what they’re spending it on. We need to give them the middle finger.
Why does the 10% bracket rise 5% while all others rise only 3%?!!! and no, I do not want the 3 percenters to pay more, I just want to know why those that earn less,pay more.
Someone interpreted "Less is more" as less income, more taxes.
It is my understanding that this is still being decided. I do not believe that much of this article is correct. Much of it is based on proposals, rather than decided tax law for 2011. For instance, I believe that the increase in dividend tax is still to be determined, if it is to be increased at all.
Death tax may NOT revert to 55% over $1 mil of estate value.
It would be best to Google the news section to determine what the current status is on legislative activity as there is much afoot about extending many of the Bush tax cuts, albeit only for a year.
I think this article was written with the premise that proposals are law, which is not the case presently.
If you factor in state income tax, property tax, excise taxes, sales taxes, ad nauseum... clearly, more than 50% is going to government at some level. Consider that this is 50% (or more) of the way to slave labor: working, regardless of whether or not you work in the "private sector", for government - they own more than 50% of you.
Don’t forget that the cost of an adoption will immediately increase by around $8,000, as the tax credit for adoption expenses drops from about $13,000 inflation-indexed back to $5,000.
You do realize that Obamacare passed, right? And that there's been no move to extend the Bush tax cuts, right?
Gee....why do I see unemployment taking a quantum leap?
Relatively, that's a fifty percent tax increase. The joke's on them. These are the people who were promised that Obama would be taxing the rich.
Because when the cuts "for the rich" were enacted, that bracket got the biggest cut. With the tax cuts expiring, all the brackets are going back to what they were.
Plus a VAT. One way to jump start the ecconmy would to tax the 1st 10,000 at 10%, next 40k at 15%, top rate of 28%, abolish the death tax, no capital gains tax, and curb feel-good sin taxes such as the tax on tobacco and liquor. This would provide adaquate revenue or even boost revenue while boosting the ecconmy. And mite attrack foreign investment. This should the 1st order of business if the GOP takes back Congress.
“I think this article was written with the premise that proposals are law, which is not the case presently.”
Not to worry, our weak-kneed RINOs will insure that it does become law through their “go along to get along” credo.
sfl
perfect...
Because the Bush Tax Cuts were substantially larger for the lowest income tax brackets, so when the tax cuts are allowed to expire, those lowest tax brackets will be hardest hit.
Double dip recession, I dont see how we avoid it.
The AMT will effect 25 million more families. I wonder if this is enough to get BHO uneelected. It goes into effect on Jan 1st 2011, most dont have to pay until April 15th 2012!
I think Baraq’s re-election only happens with a Clintonian plurality in a 3-way race.
I really don’t think he can win a 2-way race.
But no matter what the economy, taxes, or whatever the Baraqqi Coalition of minorities, illegals, dead voters, union members, govt employees, idiot libs, etc will still deliver close to 1/3 of the vote.
“You do realize that Obamacare passed, right? And that there’s been no move to extend the Bush tax cuts, right?”
Right! But you did get my point that the way the taxation for 2011 comes down is not yet set in stone. There really is discussion (even on the Dem side) about extending some of the Bush cuts, and it is not unprecedented that Congress leaves the final taxation till the last minute (to the consternation of taxpayers).
Again, if you are smart, you’re not going to use this article as a personal/business tax planner. Potentially, there are still some changes in the works.
30% is a given. Kool aid drinkers all.
I dont think he runs again.
ah! Barack’s gulf vacation?
bookmark
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