Taxes on the rise

Turfgrass

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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%

:(
 

Turfgrass

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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.

:sadwave:

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.

:0074


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.

:facepalm:
 

Turfgrass

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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).

:shrug:

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.

:0074

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.

:0corn
 

Chadman

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I'm guessing that the first post of your thread is the one we've known about for many years, the PLANNED expiration of the Bush tax cuts, right? I'm not saying I'm in favor of these taxes, I'm probably not. Just trying to get some perspective as to your posts. Sources?
 

Turfgrass

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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.

:0074

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.?

:nono:

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.

:00hour


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.

:0074

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.


:mj06:
 

THE KOD

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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.


:mj06:
..............................................................

what retired person in their right mind would contribute 100,000 to a charity from their IRA?

they would have to be nuts.

this must have come from the neocons. It sounds like one of their idiocracies.
 

Turfgrass

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..............................................................

what retired person in their right mind would contribute 100,000 to a charity from their IRA?

they would have to be nuts.

this must have come from the neocons. It sounds like one of their idiocracies.


Obviously someone with more money than you. :facepalm:
 

RAYMOND

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IT NOT FUNNY AT ALL ! ITS GOING TO PUT THE COUNTRY UNDER! SMALL BUSINESS ARE GOING TO FAIL AND FAMILY AND GOING TO GO UNDER!
KISS OUR COUNTRY GO BYE:facepalm: :sadwave:
 

Trampled Underfoot

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How much is enough?

Its sick isn't it? However, until the country wakes up and realizes that we can't afford to fight all these wars the only option is to tax. GW lowered taxes and spent more money on war. Where was the money going to come from?
 

Turfgrass

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I agree with you, but that we need a tax system where EVERYONE pays. No matter how rich or poor one is, everyone should contribute to the government. If for no other reason so that everyone has a vested interest in our government running efficiently. If one doesn't pay any taxes, he or she doesn't really care whether the government wastes money or not.
 

Chadman

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Yes, they are the PLANNED expiration of the Bush tax cuts...but I glad to see you're not in favor of them expiring either.

I'm not saying I'm not in favor of them expiring. I do think some of the ones listed are problematic for businesses and individuals. But I stand firm in the thinking that as long as we are fighting elective wars, we should not have tax cuts - and I think it showed tremendous gall by the Bush administration to enact the first tax cuts in our nation's history (from my recollection) at a time of war - let alone multiple wars.

There is no sacrifice for most Americans as far as our country participating in wars at this point. I wonder how many people supporting these wars - and ongoing tax cuts - would think otherwise if they had family members, or themselves were a part of a mandatory draft, like we had in previous wars. People at this point are oblivious to what is going on over there - I consider myself to not think of it nearly often enough - and more people are more concerned about losing cash to tax cuts expiring than they are what they can do to help our war efforts, among other things. Blind support when it doesn't affect you is pretty easy.

I for one think cuts in many of the democratic suggested programs should also be a part of this. It needs to be an across the board situation, IMO. I do know we had tax cuts for a large percentage of Americans in Obama's term, which is rarely mentioned by those concerned with additional taxes.
 

Turfgrass

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I'm not saying I'm not in favor of them expiring. I do think some of the ones listed are problematic for businesses and individuals. But I stand firm in the thinking that as long as we are fighting elective wars, we should not have tax cuts - and I think it showed tremendous gall by the Bush administration to enact the first tax cuts in our nation's history (from my recollection) at a time of war - let alone multiple wars.

There is no sacrifice for most Americans as far as our country participating in wars at this point. I wonder how many people supporting these wars - and ongoing tax cuts - would think otherwise if they had family members, or themselves were a part of a mandatory draft, like we had in previous wars. People at this point are oblivious to what is going on over there - I consider myself to not think of it nearly often enough - and more people are more concerned about losing cash to tax cuts expiring than they are what they can do to help our war efforts, among other things. Blind support when it doesn't affect you is pretty easy.

I for one think cuts in many of the democratic suggested programs should also be a part of this. It needs to be an across the board situation, IMO. I do know we had tax cuts for a large percentage of Americans in Obama's term, which is rarely mentioned by those concerned with additional taxes.

Regardless of the war/healthcare (whatever you don?t like the government spending your particular tax dollars on) Obama said that we should be thanking him for the greatest expansion of government in history. He said, "You would think they'd be saying thank you" because he claims he is keeping taxes as low as they have ever been.

Not long ago, he expanded on this point claiming that he has kept his promise of not raising income taxes on families making less than $250,000 a year.

Notice anything unusual about that statement? Obama is claiming that he has kept his promise because he has not raised income taxes on those earning less than $250,000 a year.

While that may be true, he has not lived up to his promise from September of 2008: "Under my plan, no family making less than $250,000 a year will see any form of tax increase. Not your income tax, not your payroll tax, not your capital gains taxes, not any of your taxes."

So now we are changing the rules of the game, and most of the folks out there - along with the media - will not challenge him. Along with these tax increases, we have spending and indebtedness that has grown exponentially under Obama.

Government spending is now equivalent to, who knows what percentage of GDP.

I guess we should just give till it hurts?then give some more.
 

Chadman

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I think it's fine that he's held accountable for his statements and actions. I think the dems in general have done a poor job of managing our tax dollars of late, despite the scenarios that have unfolded. 2011 will be a telling year for me with Obama, and his pledge to work on the debt. He's mentioned tough decisions and cuts coming that people won't like. I think they have to be across the board, and not traditional one-sided efforts. If he doesn't take control of this in the coming couple of years, I can't see voting for him again, not that he was my first choice in the primaries. But I would vote for him again today, if my other choice was a McCain/Palin ticket. I could never punch a ticket with Palin attached to it.
 
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