Wednesday, July 7, 2010

Tax Hikes - #1924 - Six Months to Go Until The Largest Tax Hikes in History - Americans for Tax Reform

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: (1) 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%
(2) Higher taxes on marriage and family. (3)The return of the Death Tax. (4) Higher tax rates on savers and investors.
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: (1) The “Medicine Cabinet Tax” (2) The “Special Needs Kids Tax” (3) The HSA Withdrawal Tax Hike.
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. The major items include: (1) The AMT will ensnare over 28 million families, up from 4 million last year. (2) Small business expensing will be slashed and 50% expensing will disappear. (3)Taxes will be raised on all types of businesses. (4) Tax Benefits for Education and Teaching Reduced. (5) Charitable Contributions from IRAs no longer allowed.  Read more on each of these taxes and how they will impact you..........

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