Jan 1, 2011 tax hikes

#1
utvolpj

utvolpj

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#1
Six Months to Go Until<br> The Largest Tax Hikes in History

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. For those dying on or after January 1 2011, there is a 55 percent top death tax rate on estates over $1 million.

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.
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knew it was coming but just haven't seen it spelled out like this. Couple it with the non-existent budget the House just "deemed" passed and it's like a freshman with their first credit card.
 
#2
#2
The good news...there isn't a stimulus package large enough to reverse the damage this will do to the economy.
 
#3
#3
utvolpj said:
Six Months to Go Until<br> The Largest Tax Hikes in History



knew it was coming but just haven't seen it spelled out like this. Couple it with the non-existent budget the House just "deemed" passed and it's like a freshman with their first credit card.
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Didn't Obama campaign on the fact that if you made $200,000 or less, that your taxes wouldn't increase? :unsure:

How will he compensate for this obvious tax hikes once the Bush tax cuts expire? Will he come up with a new plan?????
 
#4
#4
Rasputin_Vol said:
Didn't Obama campaign on the fact that if you made $200,000 or less, that your taxes wouldn't increase? :unsure:

How will he compensate for this obvious tax hikes once the Bush tax cuts expire? Will he come up with a new plan?????
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Simple - Bush's fault. Obama isn't "raising taxes", he's letting tax cuts expire.

Also, he'll say that his Deficit Commission recommends this. Conveniently, the Deficit Commission report comes out after the mid-term elections but before these tax cuts expire.

Remember, he inherited this mess...
 
#5
#5
On the one hand, I feel like chiding reps who deplore tax increases but are upset about the massive deficit. Obviously, it's got to be paid for somehow, and no one argues that averting complete collapse wasn't in the countries best interest.

On the other, it seems like bad timing to raise taxes now with the economy faltering. We're probably headed for more quant. easing one way or another, might as well keep taxes low too.
 
#6
#6
To me, the Cap Gains and Dividend increases are going to be the real killers.
 
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#7
#7
volinbham said:
Simple - Bush's fault. Obama isn't "raising taxes", he's letting tax cuts expire.

Also, he'll say that his Deficit Commission recommends this. Conveniently, the Deficit Commission report comes out after the mid-term elections but before these tax cuts expire.

Remember, he inherited this mess...
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it's sad but you nailed his response. I just wonder how many are going to buy it
 
#9
#9
can't wait for Nov. and the 2012 election. i was going thru the radio yesterday, and i heard a radio show host make the comment that as bad as it is right now with obama that in the long run it'll do the country good. why u ask? because like carter, obama will be a one term president, and we won't forget how bad it was for another 30 years.
 
#11
#11
jvol1 said:
On the one hand, I feel like chiding reps who deplore tax increases but are upset about the massive deficit.
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When you have lower tax rates, you have more jobs and thus more taxpayers. That's why more tax revenue comes in even though each person is paying a lower percentage, and also why these tax hikes won't do anything but cause more damage.
 
#12
#12
SGMVols said:
When you have lower tax rates, you have more jobs and thus more taxpayers. That's why more tax revenue comes in even though each person is paying a lower percentage, and also why these tax hikes won't do anything but cause more damage.
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Not to mention the money has alread been spent/allocated on the front end for these massive "stimulus" plans, obamacare, etc.. Now that the monthly bills are starting to show up in the mailbox we have to find a way to pay for it. Don't forget the VAT taxes too. Basically obama and his cronies found a backdoor way to limit our freedoms and liberties by reducing our disposable income and wealth.
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#14
#14
volinbham said:
Simple -Obama isn't "raising taxes", he's letting tax cuts expire.
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I believe you have found the root of what is happening. He didn't lie...he just, well, sorta didn't tell the whole story. But Barry's good buddy Joe Sixer wouldn't understand the whole issue, so they just breezed over it for his benefit.
 
#19
#19
I was listening to a radio station. these financial advisors said that if your employer pays a portion of your health insurance, that money will now be considered income and you will be taxes on it. so if your employer pays 5000 a year for your insurance, then that 5,000 will be added to your income and you'll be taxed on that. we are going to get taxed to death next year. it really sad that our country has gotten to this point.
 
#20
#20
We are screwed plain and simple on this. I'm sorry but if anyone thinks raising the taxes at this point sounds solid you are clinically insane. We can argue all this pointless crap after the recession but right now that is going to kill an already floundering economy.
 
#21
#21
Democrats to Propose Extending Middle-Class Tax Cuts - Yahoo! News

Senate Democrats will soon advance a plan to make permanent President George W. Bush's 2001 tax cuts for middle-class Americans earning less than $200,000, but let the tax breaks for the wealthiest Americans expire, two Senate party aides said Tuesday. They will also propose to reinstate a 45% estate tax on individuals for the next two years.
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:unsure:
 
#22
#22
geithner was on CNBC talking about how rates on Dividends and Cap Gains wouldnt go above 20% He called it the "20/20 plan". TIFWIW

it will be spearheaded by Diane Sawyer (kidding)
 
#23
#23
Geithner favors allowing some tax cuts to expire - Yahoo! News

"It's responsible to let the tax cuts expire that just go to 2 percent to 3 percent of Americans, the highest earning Americans," Geitner told ABC's "This Week" in an interview broadcast Sunday.

Doing so would show the world that the U.S. is "willing as a country now to start to make some progress" reducing long-term budget deficits, he said.
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So wait... are we making this decision based on world opinion or good, sound economic principles? :ermm:
 
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