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The Tax Tsunami On The Horizon
IBD Editorial ^ | July 21, 2010 | Investors Business Daily staff

Posted on 07/21/2010 5:16:59 PM PDT by Kaslin

Fiscal Policy: Many voters are looking forward to 2011, hoping a new Congress will put the country back on the right track. But unless something's done soon, the new year will also come with a raft of tax hikes — including a return of the death tax — that will be real killers.

Through the end of this year, the federal estate tax rate is zero — thanks to the package of broad-based tax cuts that President Bush pushed through to get the economy going earlier in the decade.

But as of midnight Dec. 31, the death tax returns — at a rate of 55% on estates of $1 million or more. The effect this will have on hospital life-support systems is already a matter of conjecture.

Resurrection of the death tax, however, isn't the only tax problem that will be ushered in Jan. 1. Many other cuts from the Bush administration are set to disappear and a new set of taxes will materialize. And it's not just the rich who will pay.

The lowest bracket for the personal income tax, for instance, moves up 50% — to 15% from 10%. The next lowest bracket — 25% — will rise to 28%, and the old 28% bracket will be 31%. At the higher end, the 33% bracket is pushed to 36% and the 35% bracket becomes 39.6%.

But the damage doesn't stop there.

The marriage penalty also makes a comeback, and the capital gains tax will jump 33% — to 20% from 15%. The tax on dividends will go all the way from 15% to 39.6% — a 164% increase.

(Excerpt) Read more at investors.com ...


TOPICS: Business/Economy
KEYWORDS:

1 posted on 07/21/2010 5:17:01 PM PDT by Kaslin
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To: Kaslin

Surf’s up, dude!


2 posted on 07/21/2010 5:23:26 PM PDT by Jack Hydrazine (It's the end of the world as we know it and I feel fine!)
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To: Jack Hydrazine

I firmly believe this is as much about making sure we have no disposable income as it is money grubbing.

Then we will all have to turn the the government for some kind of aid program to get our own money back.


3 posted on 07/21/2010 5:25:37 PM PDT by kevslisababy (It's very hard to earn my trust again)
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To: Kaslin

I can’t go there yet.

I KNOW it is coming.

We desperately need to get control back.


4 posted on 07/21/2010 5:26:12 PM PDT by nmh (Intelligent people recognize Intelligent Design (God).)
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To: Kaslin; Taxman; Principled; EternalVigilance; phil_will1; kevkrom; Bigun; PeteB570; FBD; ...
There is only one barrier that can stop the income tax tsunami. It's The Fair Tax Act(HR25/S296). The Fair Tax( not a VAT)will replace all federal income taxes with a national sales tax and abolish the IRS! Fair Tax ping!


5 posted on 07/21/2010 5:28:54 PM PDT by Man50D (Fair Tax, you earn it, you keep it! www.FairTaxNation.com)
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To: Kaslin

But Mr. Skittles said......!


6 posted on 07/21/2010 5:29:05 PM PDT by Psycho_Bunny (Hail To The Fail-In-Chief)
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To: Kaslin

If you compare the economy to a bull fight, where the bull is the economy and the matador is the demo-socialists now running things, then the tax hike will be analogous to where the matador sticks the bull with the sword.


7 posted on 07/21/2010 5:30:37 PM PDT by central_va (I won't be reconstructed, and I do not give a damn.)
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To: Psycho_Bunny

Uh huh


8 posted on 07/21/2010 5:32:03 PM PDT by Kaslin (Acronym for OBAMA: One Big Ass Mistake America)
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To: nmh

That is what I have been saying for month


9 posted on 07/21/2010 5:33:20 PM PDT by Kaslin (Acronym for OBAMA: One Big Ass Mistake America)
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To: Kaslin

This provision in the health care bill is the most troubling:

“The IRS is now empowered to disallow perfectly legal tax deductions and maneuvers merely because it judges that the deduction or action lacks ‘economic substance.’”

If you thought the IRS was thuggish before this provision, just wait for act 2. I sense that they will apply this doctrine to enemies of the state.

I think there is also another tax provision that is just as troubling.

The IBD analysis does not include tax increases through deduction and credit phase outs. Someone posted a good summary of all of these items.

Democrats will not allow the lower brackets to increase. In addition, they will not end tax welfare for the masses. However, since they have not moved a tax bill, the tax issues may not be resolved until December.

The most productive will be heavily penalized. It is time for John Galt to visit. We must resist the financial police state of the rats.


10 posted on 07/21/2010 5:34:25 PM PDT by businessprofessor
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To: Kaslin
The lowest bracket for the personal income tax, for instance, moves up 50% — to 15% from 10%.

Yep, being in that tax bracket at the time, I remember it clearly, not to mention the $300 rebate.

But don't tell it to a liberal. Their eyes will glaze over, their ears will suck shut.

They were told it was "Tax Cuts for the rich", they want to believe it, therefore it is true.

Idiots.

11 posted on 07/21/2010 5:36:30 PM PDT by FlyVet
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To: ExTexasRedhead; fieldmarshaldj; Impy; Perdogg
This is reason #1 that IMO, the best LONG TERM (for a 2012 victory) outcome for the 2010 elections is to leave the Rats in the majorities of 1-4 seats in both chambers of the Congress. The majorities will be unworkable, gridlock will be the way and then the GOP runs on a ‘clean sweep of all three chambers’ in 2012. The 2012 GOP platform is a simple one: repealing any and all legislation passed by the Rat Congress of 2007-current.

2011-2012 are going to hurt more than 2009-2010 in regards to the economy; the Rats created this disaster, let them get all the blame.

And stop all of the ‘impeach Obama’ babble. No way in Hell will the ‘first black president’ ever be impeached or removed. If the Pubs didn't get rid of Clinton, they ain't doing it to Soetoro.

12 posted on 07/21/2010 5:39:40 PM PDT by GOPsterinMA (Vote Jill Stein for governor.)
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To: GOPsterinMA

2011-2012 are going to hurt more than 2009-2010 in regards to the economy; the Rats created this disaster, let them get all the blame.


You are exactly right. 2011 is not going to be pretty.


13 posted on 07/21/2010 5:44:52 PM PDT by unkus
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To: Psycho_Bunny

Who is Mr. Skittles????


14 posted on 07/21/2010 5:48:05 PM PDT by Jack Hydrazine (It's the end of the world as we know it and I feel fine!)
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To: unkus

That’s why Pubbies running for office should let the Dems win so they can get all the blame.


15 posted on 07/21/2010 5:51:21 PM PDT by Jack Hydrazine (It's the end of the world as we know it and I feel fine!)
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To: unkus

Right - let the Rats take the complete and total blame; Lord knows they deserve it!


16 posted on 07/21/2010 6:07:39 PM PDT by GOPsterinMA (Vote Jill Stein for governor.)
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To: Jack Hydrazine

Mr. Skittles????

I believe that is the name of Obozo’s unicorn who craps out the rainbow colored skittles for the masses.


17 posted on 07/21/2010 6:08:54 PM PDT by dynachrome (Barack Hussein Obama yunikku khinaaziir!)
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To: Jack Hydrazine
...Surf’s up, dude!

A profitable business owner takes risks to hire people and start new ventures or the other way to fire everyone and retire if the circumstances are too frustrating to want to produce. The Administration and Congress want to confiscate more of the business wealth and redistribute it, embracing social engineering to steer it 'fairly' into the waiting pockets of appreciative voters. Batten down the hatches! Taxes a plenty next year.

These liberals are going to friggin' sing and dance along, all the way, as they dance off a cliff.

WAKE UP AMERICA!


THE_THRILL_IS_GONE_303b

18 posted on 07/21/2010 6:15:56 PM PDT by BobP (The piss-stream media - Never to be watched again in my house)
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To: Kaslin

Death tax, death panels, death of the economy.

Øbama is simply the political Grim Reaper.


19 posted on 07/21/2010 6:20:43 PM PDT by SpinyNorman (Carbon credits are designed to be the slush fund of the New World Order.)
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To: Jack Hydrazine; GOPsterinMA; sickoflibs

Except you can’t really run to lose.

Well John McCain can....


20 posted on 07/22/2010 3:05:25 AM PDT by Impy (DROP. OUT. MARK. KIRK.)
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To: Impy
Good point! I still think McCain would have won, if not for the manufactured financial meltdown that occurred.

And the Lone Ranger movie is a piece of crap - really bad. They were showing it on one of the Encore (Western?) Channels about 6-8 weeks ago. I tried to watch it - it's just bad.

The caliber of acting in a standard 1970’s porno is superior...and has a more believable storyline.

I came up with the “Captain UN” idea - it's appropriate, no?

21 posted on 07/22/2010 9:31:49 AM PDT by GOPsterinMA (Vote Jill Stein for governor.)
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To: GOPsterinMA

It was more his reaction to that meltdown I think.


22 posted on 07/25/2010 1:34:27 AM PDT by Impy (DROP. OUT. MARK. KIRK.)
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To: Impy

Good point Impy.


23 posted on 07/25/2010 7:04:53 AM PDT by GOPsterinMA (Vote Jill Stein for governor.)
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To: Kaslin
The tax on dividends will go all the way from 15% to 39.6% — a 164% increase.

This is the tax the libtards keep bringing up as the bogeymen of the Bush tax breaks.

First of all, it's not a tax on income, it's a tax on dividends on your investments. Most libtards don't or can't understated the difference-and how it's effects our ecomony and money markets . It was a nice tax break for the rich, but also helped keep capital in the system so our economy could expand.

Now, I'd be the first to say I have no real problem raising the tax on dividends REASONABLY to help us get out of this financial mess. Much rather raise the tax on that gain than average joe hard working American wages.

Many, many libtards are going to be shocked come Jan 2011 when they open their first paycheck and OMG I made less take home money. (Damn that Bush!!) The real shock will come when they do their 2011 taxes and are not getting back all those tax credits they "earned"

24 posted on 07/25/2010 7:17:19 AM PDT by Popman (Why does the New Black Panther Party want to kill saltines ?)
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