Here's Your "Hope And Change"

In just six 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 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 highermarginal 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:

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 IRAsand 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.

PDF Version

And worse yet?

Now, your insurance will be INCOME on your W2's!
One of the surprises we'll find come next year, is what follows - - a little "surprise" that 99% of us had no idea was included in the "new and improved" healthcare legislation . . . the dupes, er, dopes, who backed this administration will be astonished!
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.....
as modified by sec. 10901) Sec.9002 "requires employers to include in the W-2 form of each employee the aggregate cost of applicable employer sponsored group health coverage that is excludable from the employees gross income."

- Joan Pryde is the senior tax editor for the Kiplinger letters.
- Go to Kiplingers and read about 13 tax changes that could affect you. Number 3 is what is above.

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 in November!

Donna J. Tyus
President / Managing Partner
Haynie Tyus Land Development, LLC
P. O. Box 711 , Fairfield , Texas 75840
Fax - 903-389-8105
cell 386-405-2600

noshadow noshadow
61-65, M
15 Responses Aug 9, 2010

wolf, i suggest you read what I wrote.<br />
What I wrote is,the rich have to pay taxes and you think that is bad.<br />
Tell me, are you so dense you think that is 'supporting the rich'?<br />
O.K., was THAT too tough for you?

Ahhh, I understand. Taxes to pay for the repig wars, bad, tax cuts ending is bad?<br />
Are you completely stupid?<br />
Are you in favor of a nation of slaves, working for the Corporations without protection because you HATE that the rich have to pay taxes?<br />
Are you entirely stupid?

I have been talking about this stuff for a long while. <br />
Nowhere else on the net was I attacked about it like I was here on EP. lol<br />
<br />
We have to get them out and end the spending in Nov.<br />
If not there will be no way out of the hole we are digging ourselves.<br />
<br />
Mad, I think we would rather pay taxes for things the country actually needs.<br />
I bet less than 20% of the tax we pay goes to things we actually need and want in this country.

Has anyone ever noticed that bit always signs his name at the end of his comments..

Another lie.<br />
The end of a TEMPORARY TAX CUT is not a tax hike, it is a return to sensible and successful Clinton era taxes.<br />
<br />
you know, back when we had a surplus going and Bush said we could AFFORD a tax cut for the rich?<br />
<br />
Hmmm?<br />
<br />

madmaximus<br />
I sugest you read my post of "What, why, and when."<br />
If you cannot connect the need to see a doctor and perhaps they can help you.<br />
But if you can understand that, then see What if Obama is...

madmax - your comment displays a bizarre outlook on taxation. Instead of looking at what folks put in you look at what they are allowed to keep. When I was in elementary school, I learned that 25% of 200k was not just more money but a larger ante' than 10% of 50k.<br />
<br />
Where has our society gone that a guy like max can proudly proclaim that he's so clueless regarding elementary math?<br />
<br />
FYI 25% of 200k is $50,000 - I actually passed my Math and problem solving skills classes. It might explain why I don't have to beg the rich for more of what the government lets them keep.

Yeah, I hear you! You don't want to pay taxes, boo hoo, move somewhere else or hide your oh so precious money. We'll see that when the time comes the poor will have to ante up so that the rich won't have to, as usual.

Yes sec, they are coming for your 401K and any other retirement that you may have in place. <br />
Big brother knows what and how much you need, so he will deal it out to you as he sees fit.<br />
Doesn't it feel good to know someone is going to take such good care of you ? And just think how good you will feel knowing you are helping all those misfortunate people that have immigrated here by running the border and having babies....and all those second and third generation welfare recipients that have learned to work the system and live a good life via your labors?

When you write you congressman, do so with a snail mail letter. They don't respond to phone calls and emails, but a letter from the zip code in their district is actually read and considered. 5 letters on a subject are considered a mandate to pay attention. Still, they will vote their heart - that's what representative governement is, but they will consider your respectfully stated snail mail points.

I saw this coming...definately will not make the mistake of not voting this year. I'm in Nevada and I agree that Harry Reid must go down!

This is why you need to do the following:<br />
Attend a Tea Party rally<br />
Write your congressional rep and senators (mine are Eric Cantor - Jim Webb and Mark Warner)<br />
Convince 3 other conservatives to get their butts out to vote this November 2.<br />
Convince those 3 to convince three others!<br />
If you have an acquaintance in one of the following states double your efforts!<br />
Delaware - North Dakota - Arkansas - Nevada (Harry Reid must go down!) - Colorado - Pennsylvania - Illinois - New York - California - Indiana

They claim "the rich get richer and the poor..." They claim they are out to help the little guy. All along, I've said actions are truth.<br />
<br />
The rarely discussed catalyst of the 2008 financial meltdown - the burden of instant inflation of gas prices on families living paycheck to paycheck. What happened was a disaster that exposed a weakness and folly of our financial system. (Except Teflon Barney Frank stands proud and tall – <strong>his idea</strong> to force lenders to loan to folks who can’t afford loans was a great plan!) Having ruined those families (and our country taking on unsustainable debt levels) we are now going to smack the snot out of the next tier of paycheck to paycheck families with a massive tax hike. Unlike "evil" gasoline companies vying for oil in a world market, this time it is our own Government destroying another tier as the vie to hold more power over us. I wailed the first time and was told I’m stupid (it was the evil bankers). I’ve been wailing on this issue for months and have been told I’m selfish. Still, the next tier to be ruined and go into bankruptcy won’t include me, I’ll just be moved down another tier for the power hungry progressives as they transform a once great nation (with some poor) into a third world catastrophe. The new taxes may rob me of the ability to pay for my daughter’s education without a loan … oh the Fed’s will lend her money … but um… I tried so hard to provide for her, it really upsets me that the coming extra taxes will force me to take Federal help. How will our 75% spending based economy float when another tier goes down and my disposable income disappears? Because God Used to Love America, but I’ll cut as much spending as possible to take as little aid as possible. To my dear friends that work in the restaurants and movie theaters, I’m sorry but these will again be our first cut. Then your unemployment will tax me further and soon, my tier will be the one to fall.

dispite all my rage i am still just a rat in a cage,if no one stands up,we all will fall

Yeah, I knew this was coming and that it was that bad but thank you for spelling it out for people to actually see in black and white. All the while, Pelosi says that there will not be an increase in taxes. Yeah, and pigs fly!