Corpusfishing.com

[Chef Lefty]

In just two months, on 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 and understand 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 can not 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.
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[landlocked beachbum]

CL............................

Although some disparage the TEA party, those same folks would do well to stop running their gums and let their ears and eyes work for a while. Nobody ever learned anything from running their mouth!!!

TEA stands for TAXED ENOUGH ALREADY, it has nothing to do with tea or "teabaggers", and was one of the things that started the FIRST revolution............................... although THAT one did envolve some real tea!!

Hopefully the one approaching will only be fought in the voting booth and on the floors of the house and the senate but make no mistake, it's just about HERE!

Tomorrow (Nov 3rd) will be the first day!
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Dave


"The difference between genius and stupidity is that genius has it's limits". Albert Einstein

[Tyler]

Tea Hee!

[Chef Lefty]

[landlocked beachbum]

No lecture CL. The whole point being that there are many out there who close their eyes, ears and minds because they see like minded individuals doing the same thing: Monkey see, monkey do. That's NEVER a good thing.

Taxed Enough Already. A very simple concept if allowed to be!
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Dave


"The difference between genius and stupidity is that genius has it's limits". Albert Einstein

[FIDO]

I guess I'll just have to get on board with this socialism thing. We can't avoid it so I guess i'll just embrase it. I'll also be voting for Obama in a couple years too! Also, the dumbing down of america is actually a good thing. After all our daddy, OBAMA, is going to do our thinking for us. And deligate to our modern socialism heroes all matters he can attend to. I like taxes. Wow, I never realized how much I need the government. I also don't think it's big enough. It's too bad they didn't raise taxes more then maybe obama would send me my flat screen I've been waiting for for two years now. Oh well, I guess I'll just keep writing letters.
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Fish hard. You never know when you'll make you last trip south.

[helotesbill]

There is the change!!

[RodBreaker]

I hate to always be such a downer but could you guys do a little research first before you believe every crazy uncle e-mail?
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certified whiting slayer

[landlocked beachbum]

I for one check anything political, military or supposedly patriotic that I get on e-mail through snopes.com. They may not be 100% and they aren't always current either, but I make the effort not to pass on lies or BS, even about people that I detest!
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Dave


"The difference between genius and stupidity is that genius has it's limits". Albert Einstein

[larry meinert]

Tax to a wealthy person is figured in the cost of doing business. When Bush lowered tax to the wealthy it amounted to pure profit . His own people told him if he gave tax breaks to the wealthy it would surely hit the fan. They all made so much profit they all retired and sold or closed their businesses and moved to Europe . It created the worst deficit ever and poor Obama gets blamed because he cant fix 8 years of the worst business decisions ever made in only 18 months. How soon they forget. Do you miss him yet? I have to give it to the ole Bushwhacker. Only two things concerns a wealthy business owner; how much he pays the people that make him rich, and how much tax he has to figure in to pay the government to do business. Bush took care of both of those problems. Under his watch, many of the jobs got shipped over seas and the rich didn't have to pay near as much tax. Lets see. What else happened under his watch. Oh yes. The economy tanked. The housing market crashed. The price of gasoline hit $4 per gallon. The worst was the bail out of the criminals at AIG who waffled on the loan guarantees they sold to Fanny and Freddy. Don't get me started. But the system takes care of its self. When Republicans are in, greed takes over and more people go broke and then become political persuasion that shall not be mentioned. When political persuasion that shall not be mentioned get in, more people get rich and then become Republicans and wine about their taxes.

[Franklin]

i'm with l.m. on this one

[Chef Lefty]

Definitions:

Recession - When your neighbor gets laid off.

Depression - When you get laid off.

Recovery - When the president gets laid off.
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