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6 months to largest tax hike in US history....

Discussion in 'Politics, Elections & Legislation' started by Brian in Oregon, Aug 24, 2010.

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  1. Brian in Oregon

    Brian in Oregon Well-Known Member

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    For those who believed Obama's promises that no one making under $250K would see any kind of tax hike: Sorry. But now that the election is over, the votes counted, and the Democrats firmly in charge, they can no longer keep you in your fantasy world. Hope you enjoyed it while it lasted.

    Remember in November.

    -------------------------------------------------

    http://www.brookesnews.com/101207taxhikes.html

    Six months to go until the largest tax hikes in United States history

    Ryan Ellis
    BrookesNews.Com
    Monday 12 July 2010

    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:<br>
    <br>
    • The 10 percent bracket rises to an expanded 15 percent<br>
    • The 25 percent bracket rises to 28 percent<br>
    • The 28 percent bracket rises to 31 percent<br>
    • The 33 percent bracket rises to 36 percent<br>
    • The 35 percent bracket rises to 39.6 percent<br>
    <br>

    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. 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 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 relative to IRAs and 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, 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 percent 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.

    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.

    Ryan Ellis is ATR Tax Policy Director and can be reached at rellis@atr.org .
     
  2. Brian in Oregon

    Brian in Oregon Well-Known Member

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    Democrat version of the 1040....

    (1) What did you make? $_______.__

    (2) Send it in.
     
  3. Jack L. Smith

    Jack L. Smith Member

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    I believe we should tax all foreigners living abroad.

    js in PA
     
  4. al391

    al391 TS Member

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    I have a problem with American corporations like Haliburton moving off shore to avoid paying US taxes while making a fortune from US military support sevices. I have a problem with companies like Briggs and Stratton's move to Mexico to avoid the union, SS matching funds, and US taxes. I have a problem with Alan Greenspan and Ron Reagan who initiated the "unified budget" which stole the SS trust fund and put in a IOU to balance the tax cuts to the wealthy in the 1980's. I have a problem with the fact that none of the people who were responsible for the current mess we're in, aren't in JAIL.

    I feel sorry for the people who thought their house was going to be a large part of the retirement they were looking forward to. The tax burden has been on the middle and lower class for too long. Tax the wealthy and cut the tax of the middle class. Trickle down economics doesn't work!!! We need people who spend what they make, like the lower to middle class, Spending crates jobs. The rich put their money in saving, the market or other investments, that money doesn't get spent locally on every day needs and doesn't create large numbers of local jobs. Bush took a surplus and turned it into a huge deficit. Did we need that war? or did Bush's buddies at Halliburton (read VP) need a huge injection of cash and stock options. Jack
     
  5. Lyle

    Lyle Member

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    al391,

    I couldn't disagree more. The problem is not with our domestic companies moving to another country to avoid taxes. The problem is the US tax structure gives them an incentive to move to another country.

    Taxing the rich............if that won't trickle down think again. The only folks benfiting from that model are the ones sitting on their ass with their hands out.

    Lyle
     
  6. bill1949

    bill1949 Well-Known Member

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    I hope all the MORONS who voted for Odumbass are happy with their higher taxes!...Bill
     
    Charlie Becknell thanked this.
  7. SeldomShoots

    SeldomShoots Active Member

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    Taxes are most assuredly going to go up, with all of the spending under Bush's and Obama's administration. Very dissapointing and sad. However, how anyone can praise Republicans as if they not taxers and spenders, is beyond my comprehension in light of the past 13 years. Granted, Democrats have pulled out the stops in relation to spending, but the Republicans now want to say "oh my gosh" the taxes are going up.

    Republicans and republican supporters knew or should have known this when they were in power for 6 years under Bush. Just what exactly was done to prevent this back then. If the Republicans truly wanted to protect farmers, and small business owners from Federal Estate taxes going up or back to the way they were, then why was no legislation to extend the provisions of the the Taxpayer Relief Act of 1997 introduced during the 6 year period that Republicans controlled the White House and the Congress. If there was, I certainly never heard of it. By the way Bill Clinton was the President and here is how the vote when down in the house and senate according to Wikipedia:

    This was the first law devoted solely to tax cuts that Congress enacted using the fast-track budget reconciliation process.

    Final House vote, July 30, 1997:

    Vote by Party Yea Nay

    Republicans 225 99.6% 1 0.4%

    Democrats 164 80.0% 41 20.0%

    Independents 0 0.0% 1 100%

    Total 389 90.0% 43 10.0%

    Not voting 2 1

    Final Senate vote, July 30, 1997:

    Vote by Party Yea Nay

    Republicans 55 100% 0 0.0%

    Democrats 37 82.2% 8 17.8%

    Total 92 92.0% 8 8.0%

    Surely, between 2001 through the end of session 2006 Republicans could have done something, especially with the number of Democrats that voted for it in the past.

    Everyone better wise up because there is no politician, Democrat or Republican in Washington that is fiscally conservative or willing to do what is right for middle class Americans.

    John E.
     
  8. Chichay

    Chichay TS Supporters TS Supporters

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    Jack,

    "The tax burden has been on the middle and lower class for too long."

    I encourage you to click on the above Website URL to find out where the burden on (income)taxation lies.

    Chichay
     
  9. recurvyarcher

    recurvyarcher Well-Known Member

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    Chichay, the link doesn't work.
     
  10. Chichay

    Chichay TS Supporters TS Supporters

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    Curvy & Jack,

    I messed up on the attachment. Fixed it. Please try again.

    Chichay
     
  11. TC

    TC TS Member

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    The problem is that some people do not pay any tax!

    Everybody should be taxed equally; rich, poor, or in between.

    For some people to avoid paying taxes through various loop holes or because they don't make enough and have too many dependents is the reason for most of this mess.
     
  12. halfmile

    halfmile Well-Known Member

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    Of course, John Kerry's wife's company can shelter themselves out of the country (Heinz) and Kerry can avoid a half million in sales tax by hiding his boat in another state.

    al391, your post has a partisan ring to it.

    The elites think, like Leona Helmsley, that only the "little pople" have to pay taxes.

    Sickening.

    HM
     
  13. Brian in Oregon

    Brian in Oregon Well-Known Member

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    More Bush bashing when the problem at hand right now is OBAMA. Yet another desperate attempt to save his ass.
     
  14. The Rock

    The Rock Active Member

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    You just think that is bad!

    One percent transaction tax is proposed


    Banks will no longer be a good place to keep your money.......

    ---One percent transaction tax is proposed:
    President Obama's finance team is recommending a transaction tax. His plan is to sneak it in after the November election. This is a 1% tax on all transactions at any financial institution i. e. Banks, Credit Unions, etc.. Any deposit you make, or move around within your account, i. e. transfer to, will have a 1% tax charged. If your paycheck or your SocialSecurity or whatever is direct deposit, 1% tax is charged. If you hand carry a check in to deposit, 1% tax is charged, If you take cash in to deposit, 1% tax is charged. This is from Obama who promised that if you make under $250,000 per year, you will not see one penny of new tax. Keep your eyes and ears open, you will be amazed at what you learn.

    This will take you back to you putting your money under the mattress and burying your money in tin cans in the back yard. The savings account you put your money in pays about .5%.

    Rock

    Jim
     
  15. dverna

    dverna Active Member

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    Rock,
    Can you substantiate your post?

    Even the Democrats can not be that stupid. A tax like that affects 100% of the people and would be political suicide.

    Don Verna
     
  16. SeldomShoots

    SeldomShoots Active Member

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    No bashing here Brian, just the truth. Wise up, the democrats and your beloved republicans don't have your best interest at heart. We need a legitimate fiscally conservative third party, if you want to see this country turn and head in the right direction.

    John E.
     
  17. highflyer

    highflyer TS Member

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    I still see Democrats in the media saying it is only an increase in taxes on the rich. I am far from rich. Even being in my lower middle class status the Bush tax cut took me from having to pay additional money to the government to getting money back. Funny how liberals lie that way isn't it. Go to usnationaldebtclock.org. Don't blame that on the wars in the Middle East. They are a drop in a big bucket. The federal government is into everything. That cost money. Taking away our freedom is very, very expensive. Hard to believe that there are so many complete idiots that we still have liberal democrats willing to show their support for Obama and other Democrat leaders right here on this site. How could anyone be stupid enough to support these failures. I guess if your brain is completely full of liberal crap the light bulb will never turn on.
     
  18. SeldomShoots

    SeldomShoots Active Member

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    jcl, Clinton was president prior to Bush and the $300, single and $600 couple refund. What are you talking about, because your statement confuses me.
     
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