DEM TAXES WILL DEVASTATE THE FAMILY AND BUSINESS
By: Edward P. Shallow
From the Hill’s Blog Briefing Room:
Senator Kyl: Dems using debt debate for much broader tax increases’
Republicans have tried to work with Democrats to solve the debt crisis, but “behind the scenes” Democrats insisted on huge tax increases, Sen. Jon Kyle (Rare)
I did research on upcoming taxes and concluded Dems already have oppressive taxes written into law effective January 1, 2011, these taxes will have devastating effects on small businesses and the American families.
In addition to the new tax rates, I will include in this editorial that Obamacare Contains Future Health Benefits Taxes, when the public is informed there will be an all out demand for the repeal of Obamacare.
Americans for Tax Reform advised me in just six months, the largest tax hikes in the history of America would take effect. They will hit families and small businesses in three waves on January 1, 2011.
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 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 listed 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.
When Americans prepare to file their tax returns for 2011 they will be in for a nasty surprise–the AMT will not be held harmless, and many tax relief provisions will have expired. These major items include:
The AMT will ensnare over 28 million families, up from 4 million last year. 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.
Small business expensing will be slashed and 50% expensing will disappear. Small businesses can normally expense equipment purchases up to $250.000. This will be cut all the way down to $25,000
The report contains many other tax issues, to many to incorporate into this editorial. For additional information, contact Americans for Tax Reform:
My report on Obamacare Future Health Benefits Taxes obtained from www.freerepublic.com/focus/f-bloggers/2710207.posts:
By requiring the reporting of health benefits on W-2 forms, it becomes incredibly easy to tax the benefits as well as income. This new tax could include everyone, since it will not technically be considered as part of his or her “income.” Another possibility is that the reporting of health benefits on W-2s may be used as a pretext to claim that many more families actually make above $250,000 per year, opening the door to this potential tax as well as many other taxes “on the wealthy”. No matter how this new provision is applied, the only logical conclusions lead to tax increases (most likely ones that break Obama’s pledge). This clear set-up for a tax increase should not be ignored, especially given that Obamacare has already included a tax on other healthcare plans.
This President has gone through much more trouble than this to justify and implement higher taxes. The employer reporting of health benefits creates an all-new tax hike temptation as the ideal low hanging fruit of easy potential tax increases. Considering the history of Obama’s dubious ploys to raise taxes and his disregard for his campaign promise, current rhetoric combined with this easy set-up should raise a red flag for every taxpayer.