Forums / Political & Legal / Six months to go before the largest tax hikes in history.

4 years 14 weeks ago, 12:16 PM

HampsterW

HampsterW's picture

Rank:
Secretary of State
Points:
7723
Join Date:
Jan 2010
Location:
Cottonwood Heights, Utah, United States

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:
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 31% bracket rises to 33%
-The 33% bracket rises to 36%
-The 36% 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 rates on savers and investors.
The capitol 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 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 which this new cap will be particularly cruel and onerous: parents of 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 current tax rules, FSA dollars can be used to pay for this type of special needs education.

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 realitive to IRAs aand other tax-advantaged accounts, which remain at 10 percent.

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:

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 (ain't this fucking great), and pay taxes at a higher level. The AMT was created in 1969 (the year I was born) 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 businesses 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. This my friends is the slippery slope to hell.

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.

HampsterW says vote your ass off come November as this kind of shit is going to blow our economy to smithereens..........

Change you can truly believe in comes from the barrel of a gun---------------------------------------------------------------------------------Ron Paul 2012----Vote the bastards out!---------------------------------
4 years 14 weeks ago, 12:39 PM

Larry Wagner

Larry Wagner's picture

Rank:
Lieutenant General
Points:
1860
Join Date:
Nov 2009
Location:
Arizona, United States
Hampster

Cant agree with you more Hampster, VOTE, VOTE, VOTE, VOTE.
I am so sick of hearing "My vote doesn't count" BULL SHIT!! VOTE!

Any day above dirt is a good day!!! My New Motto: Where Do I Sign? (Oh yes I would)
4 years 14 weeks ago, 12:56 PM

HampsterW

HampsterW's picture

Rank:
Secretary of State
Points:
7723
Join Date:
Jan 2010
Location:
Cottonwood Heights, Utah, United States

of thieves are going kill this country. Get ready for the next housing crisis when every one is taxed up the ass to the point where they can't pay their mortgage. Along with twenty other disasters that are on the horizon because of these taxes. Something had better happen in November or things are going to get real ugly.

Change you can truly believe in comes from the barrel of a gun---------------------------------------------------------------------------------Ron Paul 2012----Vote the bastards out!---------------------------------
4 years 14 weeks ago, 5:45 PM

ecaman

ecaman's picture

Rank:
General
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2613
Join Date:
Jul 2009
Location:
Payson, UT, United States
Taxes

I agree with Hampster and Larry. We absolutely must vote in November.

If you pick up a starving dog and make him prosperous, he will not bite you. This is the principal difference between a dog and a man. (Mark Twain).
4 years 14 weeks ago, 6:02 PM

HKBauer

HKBauer's picture

Rank:
Lieutenant General
Points:
1532
Join Date:
Jul 2010
Location:
United States

I vote and proud to say vote them all out! Whether Dem or Rep, Independent or what ever party the only way we can truly have change is to vote the ones in out!!! Vote the Bums out

4 years 14 weeks ago, 1:51 PM

HampsterW

HampsterW's picture

Rank:
Secretary of State
Points:
7723
Join Date:
Jan 2010
Location:
Cottonwood Heights, Utah, United States
Vote indeed

Vote indeed.....

Change you can truly believe in comes from the barrel of a gun---------------------------------------------------------------------------------Ron Paul 2012----Vote the bastards out!---------------------------------
4 years 14 weeks ago, 9:15 AM

TLtactical

TLtactical's picture

Rank:
Major General
Points:
611
Join Date:
May 2010
Location:
Gilbert, Arizona, United States

I say FIRE ALL OF THE POLITICIANS!!!

With the exception of Ron and Rand Paul and a small handfull of others...

These people should all be fired and send to live in Iowa as a punishment! (No offense to those from Iowa, but you know what I am talking about...)

Our country is being destroyed one small piece at a time and nobody is stopping it. Obama may very well go down as the worst US president in history! Clinton was a fool who was just there for the fat girls... Bush was just playing president most of the time... Bush Jr was going through the motions and some of the time at least trying... Carter... Well Carter was Carter.... Reagan was a great communicator and probably well intentioned and for the most part the only president in my lifetime that was not for most intensive purposes useless...

We need to get this country back on track! VOTE RON PAUL FOR PRESIDENT!!!

These are of course just my humble honest opinions reambled forth to the masses to ponder and comment on....

Best Regards TL “It is the mark of an educated mind to be able to entertain a thought without accepting it.” ---Aristotle Greek critic, philosopher, physicist, & zoologist (384 BC - 322 BC)
4 years 13 weeks ago, 10:22 AM

TheTodd

TheTodd's picture

Rank:
Private First Class
Points:
2
Join Date:
Aug 2010

You can vote for anyone that you want to but just think on this. For the most part most of our lawmakers are LAWYERS. Lawyers are running this country. They can write laws with all of the loop holes in them and we won't know about it. Get the LAWYERS out of writing the laws and back into the court rooms or chasing ambulances. That is why you have laws that are 20,000 pages long. Making your taxes higher and having loop holes that protect others from the laws. Lawyers shouldn't be able to write laws. Like one person said in the old west: When you have more than one LAWYER in town it is a Conspiracy. It is like having the Fox in charge of the Hen House. Think about it........

"Live To Shoot...Shoot To Live"
4 years 13 weeks ago, 1:23 PM

TLtactical

TLtactical's picture

Rank:
Major General
Points:
611
Join Date:
May 2010
Location:
Gilbert, Arizona, United States
The Todd Lawyers

I agree that lawyers are trained manipulators of the law... I went to college for Criminal Law and Forensic Psychology... I lost all beliefs in the system the more I learned.

That being said we still have the greatest nation on the planet, with a great system. We just need to repair the past few hundred years of destruction to what the brilliant founding fathers created.

Just my humble honest opinion....

Best Regards TL “It is the mark of an educated mind to be able to entertain a thought without accepting it.” ---Aristotle Greek critic, philosopher, physicist, & zoologist (384 BC - 322 BC)
4 years 12 weeks ago, 9:46 PM

Bigshot Nobody

Bigshot Nobody's picture

Rank:
Lieutenant General
Points:
721
Join Date:
Oct 2009

is the word attorney is the french word A twa ney (I'm not sure how to spell it with the french accent on it).

It means 'word twister" Blacks Law 4th, and commentary from Blackstone.

Welcome to Guslot Todd

"We fight not for Glory nor for Honors; but only and alone we fight for Freedom, which no Good Man surrenders but with his life" - Robert the Bruce "Declaration of Arbroath"
4 years 13 weeks ago, 11:05 AM

samD

samD's picture

Rank:
President
Points:
15597
Join Date:
Aug 2008
Location:
Green Valley, Free State of Arizona, United States
TheTodd

Welcome to the site. Hope that you enjoy it.
I agree 100% about maggots, oops I mean Attorneys. 1 atty writes something so another atty has to read it to see what it says and it is left up to interpretation.
God how do we gget out of this mess. I know, don't vote for anymore attys and vote out the ones we have.
samD

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