Largest Tax Hikes in the History of America are Coming 1 Jan 2011

[Warph]

I believe MOST American have NO IDEA what the new Tax Laws will mean to to them and their families, small business owners until they get hit with it in 2011.  "IT WILL BE LIKE A SHOT BETWEEN THE EYES" BY THE OBuMA ADMINISTRATION!  The big tax hikes go beyond just the simple repeal of the upper income Bush tax cuts.  Everybody who pays income taxes, regardless of income level, will have their taxes increased.  No one is denying that Bush played a role in creating a deficit but Obuma, for all his nice words about CHANGE, is worsening it.  He not only doubled the national debt, he tripled it!

.......Warph



Six Four Months to Go Until
The Largest Tax Hikes in History
From Ryan Ellis

http://www.atr.org/six-months-untilbr-largest-tax-hikes-a5171#

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:

(N.B. This version of the document contains even more tax hikes than the original version did)

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, there is no death tax.  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 and a retirement account could easily pass along a death tax bill to their loved ones.

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:  

http://www.atr.org/obamacare-taxes-final-tab-a4744

Several will first go into effect on January 1, 2011.  They some include:

The Tanning Tax.  This went into effect on July 1st of this year.  It imposes a new, 10% excise tax on getting a tan at a tanning salon.  There is no exemption for tanners making less than $250,000 per year.

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 HSA 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.

Brand Name Drug Tax.  Starting next year, there will be a multi-billion dollar tax assessment imposed on name-brand drug manufacturers.  This tax, like all excise taxes, will raise the price of medicine, hurting everyone.

Economic Substance Doctrine.  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."  This is obviously an arbitrary empowerment of IRS agents.

Employer Reporting of Health Insurance Costs on a W-2.  This will start for W-2s in the 2011 tax year.  While not a tax increase in itself, it makes it very easy for Congress to tax employer-provided healthcare benefits later.


Third Wave: The Alternative Minimum Tax 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.  These 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:   http://www.taxpolicycenter.org/numbers/displayatab.cfm?DocID=2702

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 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.

http://www.jct.gov/publications.html?func=startdown&id=3646

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.


List Of Expiring Federal Tax Provisions:
http://www.jct.gov/publications.html?func=select&id=10

[Anmar]

1.  Allowing the tax cuts to expire is technically not a tax increase

2.  If the republicans were serious about the tax cuts, they would have made them permanent in the 6 years that they controlled the house, senate, and executive branch.

3.  The demos are going to extend all the tax cuts except for the top bracket

4.  You were just whining that you didn't get more money from your socialist social security program.  You also want the country to go to war with Iran, and you support the wars in iraq and afganistan.  you want troops on the border to fight illegal immigration.  You want the government to have a balanced budget without cutting military spending.  How the hell do you expect the government to pay for all that crap?

[srkruzich]

You also want the country to go to war with Iran, and you support the wars in iraq and afganistan.  you want troops on the border to fight illegal immigration.  You want the government to have a balanced budget without cutting military spending.  How the hell do you expect the government to pay for all that crap?

Simple.  the total cost of the iraq war was less than obamas pissing away 2 trillion. Cut obama.    You cannot cut military out. to do so is highest form of stupidity as we learned on 9/11.  Clinton cut our military so badly and treated the ones in there so badly that we were essentially defenseless.  so military gets no cuts, cut out the rest of the government graft

[Warph]

Make that over $3 trillion that Obuma has pissed away in the 18 months he's been in office, Steve.  He has spent more money as President than all the Presidents put together.

1.  Allowing the tax cuts to expire is technically not a tax increase

2.  If the republicans were serious about the tax cuts, they would have made them permanent in the 6 years that they controlled the house, senate, and executive branch.

3.  The demos are going to extend all the tax cuts except for the top bracket

4.  You were just whining that you didn't get more money from your socialist social security program.  You also want the country to go to war with Iran, and you support the wars in iraq and afganistan.  you want troops on the border to fight illegal immigration.  You want the government to have a balanced budget without cutting military spending.  How the hell do you expect the government to pay for all that crap?

1.)  LOL... you have been drinking the lefts Koolaid again, havent you, lady.  You remind me of the "Nexus" ad on TV  of the lady gurgling water out of a 5 gal. jug.... only in your case it is KOOLAID, anmar.   "Technically".... I see you used one of the favorite liberal-lefts words when they don't want to be truthful about something...
Of course allowing the tax cuts to expire is A TAX INCREASE, DUMMY!   You don't want to raise taxes during a bad RECESSION.... VERY BAD, VERY UNPOPULAR.  The only way out of this god-awful mess Obuma has created is: Get rid of the tax cuts for the rich and maybe some of the tax cuts for the upper-middle class, $250,000 and above for 2 years and wipe out the payroll tax.  Write the policy so the payroll tax phases back in as unemployment falls.  That's a better way of visible and immediate help, much better at helping the people who need help.  Well the demorats do it in that order.... I doubt it.


2.)  Why didn't they make it Permanent??  You don't make something "permanent" like that and expect to stay in power long.  You can tax the rich for so long before your house of cards start falling around your ass. 


3.)  Think so??  This is the Demorats dilemma right now.  When and how is that going to happen?


4.)  Oh Lord.... where do I start on this one.  You evidently have a problem understanding my past posts on those questions.  You sure as hell have a problem understanding the Obuma administration new tax hikes.  What is not getting through to you?  Have you even read them?  What is it that doesn't compute in that female mind of yours?  Is it possible you want military spending cut like Clinton did on his 2 term watch and almost destroyed the military and DOD.... is that what you want?  You want the borders OPEN so all of those clowns and their drugs can march in and take over?... not to mention your Hamas and Hezbollah buddies coming in at the same time.  Lets face it lady... you are as liberal as they come.  You hung your star on Obuma and it's really pissing you off making a mistake like that... isn't it?  But what the hell...If it was up to you, you would go right along with Obuma making this nation a third class piece of crap because you sure as hell not helping it whining about how bad it is.  And..oh yeah... how's Obuma going to pay for ObumaCare?    Tax... tax... tax....!