WAKE UP AMERICANS, STOP THIS MADNESS.
I wrote and posted the following article on October 23, 2010. If you just change the dates to posting it today and the 2011 predictions to 2013, nothing will change the coming tax increases. Even if Romney wins and the Republicans win control of the Senate it will happen and it will cost billions and months to correct this plan to destroy America financially. Obama and Harry Reid have timed this to happen on purpose and this will wilpe out whatever savings you have left.
Unless you are on welfare, an illegal alien or in Congress you better read
every word of this message. If you are a progressive Democrat and still
support this madness, you are just stupid.
Wake up and Vote and stop Obama’s race to socialism
Joan Pryde is the senior tax editor for the Kiplinger letters.
Go to Kiplingers and read about 13 tax changes that could affect you.
These are just three.
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 all three waves)…
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).
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 lowest rate will rise from 10 to 15 percent.
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
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
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.
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
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
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!
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 the15% 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
employer sponsored group health coverage that is excludable from the
employees gross income.”
Why am I sending you this? The same reason I hope you forward this to
every single person in your address book..
People have the right to know the truth because an election is coming