OBAMA AND DEMS TAX HIKES COMING

[frawin]

Obama and the Democrat controlled Congress continues their destruction of America and the working people. To continue to increase tax on the rich and investments is a destruction of jobs , the poor don't start companies and invest in jobs, the rich do.

In  just six months, on January 1, 2011, 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, here's what happens... (read it to the  end, so you see all three  waves)...

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% 



Higher  taxes on marriage and  family.  The "marriage  penalty" (narrower tax brackets for  married couples)  will return from the first dollar of 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.   

The  dependent care and adoption tax  credits will  be cut.


The Return  of the Death  Tax.  This  year only,  there is no death tax.  (It's a  quirk!) For  those dying on or after January  1, 2011,  there is a 55 percent top death tax rate on  estates over $1 million.  A person leaving  behind two homes, a  business, a  retirement account, could  easily pass along a death tax bill to their  loved ones.  Think of the farmers who don't  make much money, but their land, which they  purchased years ago with after-tax dollars, is  now worth a lot of money.  Their children  will have to sell the farm, which may be their  livelihood, just to pay the estate tax if they  don't have the cash sitting around to pay the  tax.  Think about your own family's assets.   Maybe your family owns real estate, or a  business that doesn't make much money, but the  building and equipment are worth $1 million.   Upon their death, you can inherit the $1  million business tax free, but if they own a  home, stock, cash worth $500K on top of the $1  million business, then you will owe the  government $275,000 cash!  That's 55% of  the value of the assets over $1 million!   Do you have that kind of cash sitting  around waiting to pay the estate  tax?


Higher  tax rates on savers and  investors.

The  capital gains tax will rise from 15 percent this  year to 20 percent in 2011.   

The  dividends tax will rise from 15 percent this  year to 39.6 percent  in 2011.   

These  rates will rise another 3.8 percent in  2013.



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  and onerous: parents of special needs children.   

There are thousands  of families with special needs children in the  United States  , and  many of them use FSAs to pay for special needs  education.

Tuition  rates at one leading school that teaches special  needs  children in  Washington , D.C. ( National Child Research  Center ) can easily exceed $14,000 per  year.

Under  tax rules, FSA dollars can not be used to pay  for this type of  special needs  education.


The  HSA (Health Savings Account) Withdrawal Tax  Hike.  This  provision of Obamacare increases the additional  tax on non-medical early  withdrawals from  an HSA from 10 to 20 percent, disadvantaging  them relative to  IRAs and  other tax-advantaged accounts, which remain at  10 percent.



Third  Wave:

The  Alternative Minimum  Tax (AMT)  and Employer Tax  Hikes.  When  Americans prepare to file their tax returns in  January of  2011, they'll  be in for a nasty surprise-the AMT won't  be held  harmless, and many tax relief provisions will  have expired.


The  major items  include:

The  AMT will ensnare over 28 million families, up  from 4 million last  year.

According  to the left-leaning Tax Policy Center ,  Congress' failure to index the AMT will lead  to an  explosion of AMT taxpaying families-rising from  4 million  last year  to 28.5 million.  These families will have  to calculate  their tax  burdens twice, and pay taxes at the higher  level.  The AMT  was created  in 1969 to ensnare a handful of  taxpayers.


Small  business expensing will be slashed and 50%  expensing will  disappear.

Small  businesses can normally expense (rather than  slowly-deduct,  or "depreciate")  equipment purchases up to $250,000.   

This will  be cut all the way down to $25,000.  Larger  businesses can currently expense  half of their purchases of equipment.   

In January of  2011, all  of it will have to be  "depreciated."


Taxes  will be raised on all types of  businesses.

There  are literally scores of tax hikes on business  that will  take place.   The biggest is the loss of the "research  and experimentation  tax credit," but  there are  many, many others. Combining high marginal tax  rates  with the  loss of this tax relief will cost  jobs.


Tax  Benefits for Education and Teaching  Reduced.

The  deduction for tuition and fees will not be  available.

Tax  credits for  education will be limited.   

Teachers will no longer be able  to deduct  classroom  expenses.

Coverdell  Education Savings  Accounts will  be  cut.

Employer-provided  educational assistance  is curtailed.   

The student loan interest  deduction will be  disallowed for  hundreds of thousands of  families.

Charitable  Contributions from IRAs no longer  allowed.

Under  current law, a retired person with an IRA can  contribute up  to $100,000  per year directly to a charity from their IRA.   

This contribution  also counts toward an annual "required  minimum distribution."   This ability will no longer be  there.



PDF   Version  Read more: <"  href="http://www.atr.org/six-months-untilbr-largest-tax-hikes-a5171%3E"  rel=nofollow  target=_blank>;; http://www.atr.org/six-months-untilbr-largest-tax-hikes-a5171#%23ixzz0sY8waPq1


And  worse yet?


Now,  your insurance  will be INCOME on your  W2's!  One  of the  surprises we'll  find come next year, is what follows - - a  little "surprise"  that 99% of us had no idea was included in  the "new  and improved" healthcare legislation . . . the  dupes,  er, dopes, who backed this administration will  be astonished!

Starting  in 2011, (next year folks), your W-2 tax form  sent  by your  employer will be increased to show the value of  whatever health  insurance you are given by the company. It does  not matter  if that's a private concern or governmental body  of some  sort. 

If you're retired?  So  what... your  gross will  go up by the amount of insurance you  get.

You  will be required to pay taxes on a large sum of  money that  you have  never seen.  Take your tax form you just  finished and  see what $15,000 or $20,000 additional gross  does to your tax  debt.  That's what you'll pay next year.   

For many,  it also puts you into a new higher bracket so  it's  even worse.


This  is how the government is going to buy insurance  for the15% that  don't have  insurance and it's only part of the tax  increases.

Not  believing this???  Here is a research of  the summaries.....

On  page 25 of 29: TITLE IX  REVENUE PROVISIONS-  SUBTITLE A: REVENUE OFFSET PROVISIONS-(sec.  9001, as modified by sec. 10901) Sec.9002   "requires  employers to  include in the W-2 form of each employee the  aggregate cost  of applicable  employer sponsored group health coverage that  is excludable  from the employees gross  income."


- Joan  Pryde is the senior tax editor for the Kiplinger  letters.
- Go  to Kiplingers and read about 13 tax changes  that could  affect you.  Number 3 is what is  above.


Why  am I sending you this?  The same reason I  hope you forward this to every single person in  your address  book.

People  have the right to know the truth because an  election is coming in November!

[Anmar]

Someone doesn't read the news.   Obama has said that they want to continue all tax cuts except to the top 3% of americans.  For them, the rate will go from 35% to 39.5%  Just like it was in the 90's.  I remember the 90's,  the budget got balanced, the economy was doing well.  I don't know if its true, but how can such a small increase in taxes be the largest increase in history?

[srkruzich]

Someone doesn't read the news.   Obama has said that they want to continue all tax cuts except to the top 3% of americans.  For them, the rate will go from 35% to 39.5%  Just like it was in the 90's.  I remember the 90's,  the budget got balanced, the economy was doing well.  I don't know if its true, but how can such a small increase in taxes be the largest increase in history?

read the article again. its pretty good at explaining it.  btw the top 5% already pay over 50% of all taxes anyway.  Now when tthey have to shell out more in taxes, their going to cut jobs to cover the increase.  Happens every time a dem gets tax crazy.

[Warph]

This is only the beginning... you ain't seen nothing yet from this a**hole we call our president.

Time to vote the mother (blank) out!  Take him off at the knees in 2010 and kick his butt back to the sandpile in 2012.

I hope I haven't offended any far-left liberal democrats.  If I have, please speak up and let me know.

[Patriot]

New from the latest mail order houses....

Progressive liberal democrat, rope, tree.  No batteries needed.  Some assembly required.

Order yours today!

[Patriot]

Someone doesn't read the news.   Obama has said that they want to continue all tax cuts except to the top 3% of americans.  For them, the rate will go from 35% to 39.5%  Just like it was in the 90's.  I remember the 90's,  the budget got balanced, the economy was doing well.  I don't know if its true, but how can such a small increase in taxes be the largest increase in history?

Obummer says a lot of things, but bullspit is still bullspit... Talk is cheap!   How's that 8% max unemployment rate thing doing? Or that close Gitmo in 100 days thing.  Or that no to the national prayer breakfast and yes to muslim ramadan celebration dinner at the white house thing. Or that transparency thing. Or that post-racial presidency crap.  Or those stimulus funds going overseas thing.

Google 'Cloward and Pliven strategy' and see what's really happening people.  Remember, public (government run) schools, government directed agriculture and progressive income taxation were all keystones to Karl Marx Communist Manifesto.  Those who refuse to learn from history are doomed to repeat it. Is it an accident that the progressive democrats in power now are so agressively pursuing these plans?  To be sure, there are progressives on both sides of the isle.  Bad news for the Republic to be sure.

Can't happen in America, you say?  Keep on dreaming.  It's time to decide and act.  While there's still time.

[Patriot]

This is only the beginning... you ain't seen nothing yet from this a**hole we call our president.

Time to vote the mother (blank) out!  Take him off at the knees in 2010 and kick his butt back to the sandpile in 2012.

I hope I haven't offended any far-left liberal democrats.  If I have, please speak up and let me know.

Him and any other Wilson worshiping POS incumbent elitist 'progressive'.  Contrary to popular belief, government is NOT necessarily your friend. 

"Power tends to corrupt, and absolute power corrupts absolutely. Great men are almost always bad men."
Lord Acton, 1887

[jerry wagner]

New from the latest mail order houses....

Progressive liberal democrat, rope, tree.  No batteries needed.  Some assembly required.

Order yours today!

What a bunch of bullshit, threaten people with hanging because they dare to disagree with you.... obviously the author of that remark is an evil fascist bastard.

[Varmit]

What a bunch of bullshit, threaten people with hanging because they dare to disagree with you.... obviously the author of that remark is an evil fascist bastard.

Whatcha' talkin' 'bout Jerry??  Treason is a hangin' offense, boy.  Patriot is right on the money with that one.  Before you spout off with your tolerance and diversity BS, do a little research, goggle 'cloward and pliven', open your eyes and take a good look around and see what is going on.

[Anmar]

Increasing taxes is not treason smart guy.