January 1, 2011. A new wave of taxes...

Discussion in 'The Powder Keg' started by cremley, Sep 7, 2010.

  1. I just received a letter from a friend of mine who is an accountant with a CPA and owns her own firm. I won't rewrite the whole letter but I will put in the basics of what you should expect.

    First Wave:

    Personal Income Tax Rates Will Rise.

    The 10% bracket rises to 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% (this is the rate at which 2/3rds of small business profits are taxed).

    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 from $1000 to $500 per child. There are a few others.

    The Return of the Death Tax
    55% top death tax rate on estates over $1 million. bla bla bla, not good for the families of the deceased.

    Higher Tax Rates on Savers and Investors.
    The capital gains tax will rise from 15% to 20%. The dividends tax will rise from 15% to 39.6%. They will both rise another 3.8% in 2013.

    Second wave:
    Health-care BS!

    The "medicine cabinet tax".
    cand use a Health savings account (HSA), flexible spending account (FSA), or health reimbursement (HRA) pre-tax dollars to purchase non-prescription drugs (except insulin?)

    The "special needs kids tax"

    cap on FSA of $2,500 (currently no fed limit).

    third wave:

    The AMT will Affect over 28 million families. up from only 4 million last year.
    According to the tax policy center, congress' failure to index the AMT will lead to an explosion of AMT taxpaying families. These families will have to calculate their tax burdens twice, and pay taxes at the higher level. The AMT was created in 1969 to affect only a handful of taxpayers.

    Small business expensing will be slashed and 50% expensing will disappear.
    Small business can normally expense 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.
    Basically another way of saying LOST JOBS!!!

    Tax benefits for education and teaching reduced.
    As if teachers weren't hurting enough, they will no longer be able to deduct classroom expenses from their own wallets. Deduction for tuition and fees will not be available. Coverdell education savings accounts will be cut. 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 his/her IRA. This contribution also counts toward an annual "required minimum distribution." This ability will no longer exist.

    This tax hike, the largest in the history of the United States of America has not been widely publicized, for obvious reasons.


  2. grizcty

    grizcty God, Guns, Glory Forum Contributor

    Hey America!
    How do you like the: HYPE & CHANGE!

  3. Well,

    something I find absolutely amazing are the economists who hold out we are not heading toward and double dip recession and the facts of your post that guarantee we will have a worse than before recession.

    It is really pretty simple. Taking even more money from the American population will result not only in that money not being spent on goods and services but that people will hold back more in non-spending than just what is necessary to offset the tax increases.

    However, there is not any provision for taxing money put into trusts by the wealthy.
    Last edited: Sep 8, 2010
  4. SwedeSteve

    SwedeSteve Freedom Zealot Forum Contributor

    I guess our change will be all we have left !!
  5. PAPA G

    PAPA G G&G Evangelist Forum Contributor

    don't bet on it, it will be taxed as unearned income.
  6. kansascoyote

    kansascoyote G&G Newbie

    Time to go underground with your money fellas . The idiots learned nothing from the 1930s depression .
  7. BarryHalls

    BarryHalls G&G Evangelist

    YAY! Economic recovery!
  8. billy

    billy G&G Evangelist Forum Contributor

    out of my hands so i wont bother reading that big article
  9. PAPA G

    PAPA G G&G Evangelist Forum Contributor

    so, in other words taxing your *** is ok???

    if you are happy with your change, or not happy with your change vote the bastards out.
  10. With all the jobless increasing even that increase won't make up for it. Quit paying America. Dryemup.
  11. I heard on Fox earlier today that Obama is going to sign a tax break bill for bussiness's.
    Maybe more will follow or we will be walking bowlegged after Jan. 1st.
  12. woody1981

    woody1981 Love Your Firearms! Forum Contributor

    I don't see these major tax hikes happening. For one, nothing will happen before the November elections. After that, if the Dems do have enough numbers to pass something like this, there won't be time from the elections, through Christmas break, for such a whopping increase. If they do pass this, such taxation will push working Americans over the abyss, and many steps closer to an actual revolt.
  13. magicjeep

    magicjeep G&G Enthusiast

    this is the hope and change the "majority" wanted. right?
  14. waterdog

    waterdog G&G Enthusiast

    I think it"s only for 1 yr .sorry but no help.
  15. From what the letter says, these taxes will take effect January 1,2011 for the next tax year. The laws are already passed... It did happen...
  16. Just more reason for a complete overhaul of our tax system, which should not exceed 10% of anyone gross for all government agencies, including the school board....
  17. Never_Evil

    Never_Evil G&G Evangelist

    Where is our representation?? Did we actually vote these people into public office to take all of our money away? Where is the so called "transparency" in this government. If we can not vote them out, why can't we impeach them out? I know an impeachment is not instant removal, but its a step in the right direction.

    This administration is pulling more sucker punches on the American citizens than we can defend against. Obama claims he is against these heads of companies and wall street for taking huge bonuses with wreckless concern, but he is doing the EXACT same thing. How much of that "stimulus" money has actually come back into the system? How much of that money is missing? Why is there going to be a 3rd wave of stimulus?

    Forget waiting until election time, there better be some investigations going on. The only reason he wants the public to give it time and wait a minimum of two years is to make a very long paper trail that will be impossible to follow. There is no way that this president can be so grossly incompetent without an ulterior motive that does not have the United States in its best interest.
  18. Palladin8

    Palladin8 G&G Evangelist

    These are the Bush tax cuts that will run out or sunset. They didn't pass anything all they have to do is allow it to sunset just like they did on the Brady bill. The Administration has said that it will extend some of these tax credits but so far nothing has happened.
  19. BarryHalls

    BarryHalls G&G Evangelist

    To impeach a government official, they actually have to be charged with a crime of moral turpitude serious enough to warrant removal from office. The impeachment process is ACTUALLY the filing of those charges. As much as we dislike what is going on, they are going, more or less, by the book, and the supreme court (who actually tries presidential impeachments) would never hang this administration.

    President Clinton was the only US President to actually ever officially be impeached. He wasn't removed, but he did have the charges filed and formally heard.
  20. Never_Evil

    Never_Evil G&G Evangelist

    Andrew Johnson was also impeached, but then was acquitted.