Think Taxes are High NOW??? JUST WAIT!!!

[bluegrass]

This is a summary of what the boys in Washington are about to do to us. Pretty scary if it happens and most of it is already law. So much for no tax increases for those making less than $250K. Notice the reference to Kiplingers.









Better to be prepared than caught unaware.....

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 cannot 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.






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 folks 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 the 15% 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.

ADDED COMMENT!

LAST but far from least – effective January 1, 2013 – sell a property – PAY A FEDERAL TAX of 3.8% on gross sales price. Doesn’t matter if you make a profit on sale – it is on GROSS not net.

Worse part of this from my perspective is as a new tax it is an “opportunity” that the government can continue to exploit. No guarantee that the 3.8% won’t be increased in later years – remember social security was never suppose to exceed 1%. And of course there is the second shoe – since the Federal government is applying this tax, why not the State government too? As a potential source of large bucks – it may be too attractive for States to resist.

Ooookayyy. . . . . .so how do we all like hope and change now ???



Thanks to all that voted for this lying Kenyan...IDIOT!!!!

[TC]

WHAT SAY YE NOW RUFUS???????
CHIEF???????
HOW IS THIS BUSH'S FAULT?????
Hope ya Got yer purple Card!!!!!!!

[Newt]

Wise use of our Tax dollars.
Wonder how many jobs that created? I guess the President's Kenyan brothers got a stimlus.

Feds Spent $800,000 of Economic Stimulus on African Genital-Washing Program
Monday, September 13, 2010
By Matt Cover

The National Institute of Mental Health (NIMH), a division of the National Institutes of Health (NIH), spent $823,200 of economic stimulus funds in 2009 on a study by a UCLA research team to teach uncircumcised African men how to wash their genitals after having sex.

The genitalia-washing program is part of a larger $12-million UCLA study examining how to better encourage Africans to undergo voluntary HIV testing and counseling – however, only the penis-washing study received money from the 2009 economic stimulus law. The washing portion of the study is set to end in 2011.
http://cnsnews.com/news/article/75198

[Salzer mtn]

I don't really keep up with politics but i've been seeing where the tea party is backing there own candities again the Republican party, I thought the tea party was the Republic party. Is the Party unraviling at the seams or what ?

[Newt]

I'm not a member and am no authority on the Tea Party, however they seem to be a attracting a lot of democrats as well as republicans. If not, how do you account for the change in attitude by the democrats. At first the democrat establishment was derisive toward them, calling them racists and other pejoratives. Now they are, by some accounts, treating them with respect. The win by Brown in Massachusetts, shows that they are attracting democrats to their side. Democrats outnumber republicans about 3-1 in Mass.
The Tea Party stands for stop the spending and quit wasting China's money that taxpayers will be forced to pay back.

[TC]

Bluegrass,
You forgot to mention where now the government will have real time access to all your financial accounts and can dip in at any given time and point with out notice with the new Oboma Care law. This means if you are on hard times and cannot make the medical payment as that company thinks you should they can automatically take it out with out consideration to your other financial responsibilities.

In light of this everyone should put back cash where only you have access to otherwise you may find that you will not be able to make the house payment because the government has depleted your accounts with out notice.

[bluegrass]

Bluegrass,
You forgot to mention where now the government will have real time access to all your financial accounts and can dip in at any given time and point with out notice with the new Oboma Care law. This means if you are on hard times and cannot make the medical payment as that company thinks you should they can automatically take it out with out consideration to your other financial responsibilities.

In light of this everyone should put back cash where only you have access to otherwise you may find that you will not be able to make the house payment because the government has depleted your accounts with out notice.

You are absolutely correct TC...they have that provision in there...IF this were a Republican administration proposing this the liberals like Rufus would be screaming from the mountaintops about government intrusion (and they would be right) BUT since its their messiah Obambi doing it, well, it must need doing if he's doing it, RIGHT????


I once posted that Obama could come out on stage and rape a chicken and liberals and democruds would all be talking the next day about how that chicken needed raping and that it was probably part of his heritage or upbringing, and that we shouldnt judge others....

[TC]

Bluegrass,
You forgot to mention where now the government will have real time access to all your financial accounts and can dip in at any given time and point with out notice with the new Oboma Care law. This means if you are on hard times and cannot make the medical payment as that company thinks you should they can automatically take it out with out consideration to your other financial responsibilities.

In light of this everyone should put back cash where only you have access to otherwise you may find that you will not be able to make the house payment because the government has depleted your accounts with out notice.

You are absolutely correct TC...they have that provision in there...IF this were a Republican administration proposing this the liberals like Rufus would be screaming from the mountaintops about government intrusion (and they would be right) BUT since its their messiah Obambi doing it, well, it must need doing if he's doing it, RIGHT????


I once posted that Obama could come out on stage and rape a chicken and liberals and democruds would all be talking the next day about how that chicken needed raping and that it was probably part of his heritage or upbringing, and that we shouldnt judge others....

For the life of me I don't know why no one is concerned with this bill... Or the Cap and Trade bill good grief if that goes through you have to go green on your house or you will not be able to get financing because they created the governing laws for financing your home into that bill. You have to have it upgraded to their standards no one is grandfathered in. You will have to have a plate on your house showing it's rating. I believe also after so many years after the law goes through you will have to totally up grade who has that kind of money? I sure don't. How will the working poor pay for all this?