Skip to comments.Tax hikes ahead? Be prepared (Taxes in 2013 as Bush tax cuts expire)
Posted on 09/07/2012 10:56:05 AM PDT by Innovative
The tax cuts enacted by Congress in 2001 and 2003 - often referred to as the Bush tax cuts - provided a broad range of tax relief, including lower tax rates on income, long term capital gains, and qualified dividends. We dodged the expiration of these lower taxes back in 2010 when Congress extended the tax cuts for two years (through 2012). Now cuts are set to expire on December 31, 2012, and any action will likely come down to the wire as it did in 2010.
It's difficult to predict what will happen, but three scenarios are possible:
All the tax cuts could expire if Congress and the president fail to reach an agreement before December 31. In this case, the new Congress could act in 2013 to reinstate some of or all the tax cuts.
The tax cuts could be extended temporarily, giving Congress time to act on a permanent solutionâpossibly by reforming the tax code.
Some type of compromise could be reached in the lame duck session, with some taxes extended or modified and others allowed to expire.
One area of uncertainty is income tax rates. Without action, the 25%, 28%, 33%, and 35% tax rates will increase, and the 10% tax bracket will go away.
The tax rates on long-term capital gains and qualified dividends, which are currently 15% (0% for taxpayers in the lowest two income brackets) are also set to change. Without Congressional action, the long-term capital gains rate would revert to 20% for most taxpayers and to 10% for those in the 15% income tax bracket in 2013. Qualified dividends, meanwhile, would go back to being taxed as ordinary income, so for some investors, the top tax rate could rise to 39.6%.
(Excerpt) Read more at 401k.fidelity.com ...
The Rinos and Obammy went in front of the judge, both claiming to be the adopted parent of the baby (the USA).
Since the judge did not know who the real parent was, he offered to cut the baby in half - one half for the Rinos and one half for Obammy. They decided to chop the baby because they could blame it on the judge.
It’s a good idea. Is there a chart somewhere that would show me how much we’d save if we were single?
“And just what brilliant strategy do they suggest you take to make a dazzling response to this to realize your retirement dreams?”
Very simple: VOTE REPUBLICAN!!! Romney, Republican House, Republican Senate.
I intend to but if you think things are just as simple as that to rescue the fading future for retirement savings ... well.
I understand the death tax goes from affecting those with a $10 mill. estate down to a $1 mill. estate, and the tax rate is around 43%. Can someone verify this?
n 2013, the death tax will revert to its antiquated, pre-2001 form. The applicable exclusion amount will plummet to $1,000,000, and the top marginal rate will leap twenty points to 55%. A 5% surtax will also return, to be levied on estates between $10 million and $17 million. This raises the top effective rate of the death tax to 60%.source:http://atr.org/dont-die-confiscatory-percent-death-tax-a7051
More money into sterile assets such gold, purchased with cash and unregistered, which can be passed on w/o estate tax. More underground economic activity. Of course, less government revenue.
I did some digging and found this.
Starting Jan 1, everyone will pay an individual obamacare mandate tax of $1360/year or 2.5% of your adjusted gross.
Plus a surtax on investment income for households earning 250K or more.
Cap gains go from 15 to 23.8%
Dividends go from 15 to 43.4%
Rents, royalties or other passive income goes from 35 to 43.4%
Tax rates set by Bush will expire and go back to clinton era rates.
There are 13,000 pages of NEW tax regulations
Standard deduction for married couples is cut in half.
child tax credit goes from $1,000 to $500 per child.
Death tax exclusion goes from 10 mil to 1 mil with a 55% hit on anything over that 1 mil.
No adjustments to the AMT
Business expensing will be spread out over years instead of expensing 1/2 in the first year.
AND add in all the new obamacare taxes and regs that haven’t been made public yet.
Yeah it’s coming, a real taxmaggedon.
Doe anyone know if this is true? Could it be a part of obamacare?
Subject: HR 4646
A 1% tax on all bank transactions is what HR 4646.
Here is what Snopes says about it: