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Title: Six Months to Go Until The Largest Tax Hikes in History (Brace Yourselves....Obama Bens Over the American Worker, Again!)
Source:
atr.com
URL Source: http://www.atr.org/six-months-untilbr-largest-tax-hikes-a5171#
Published: Aug 22, 2010
Author: Ryan Ellis
Post Date: 2010-08-22 11:37:42 by Nebuchadnezzar
Keywords: None
Views: 15472
Comments: 36
Six Months to Go Until The Largest Tax Hikes in History From Ryan Ellis on Wednesday, July 7, 2010 5:27 PM Add to Reddit Add to Stumbleupon Add to Delicious Add to Digg Add to Facebook Add to Twitter In just six months, 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: (N.B. This version of the document contains even more tax hikes than the original version did) 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 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. This year, there is no 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. A person leaving behind two homes and a retirement account could easily pass along a death tax bill to their loved ones. 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: Obamacare There are over twenty new or higher taxes in Obamacare. Several will first go into effect on January 1, 2011. They include: The Tanning Tax. This went into effect on July 1st of this year. It imposes a new, 10% excise tax on getting a tan at a tanning salon. There is no exemption for tanners making less than $250,000 per year. 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 HSA 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. Brand Name Drug Tax. Starting next year, there will be a multi-billion dollar tax assessment imposed on name-brand drug manufacturers. This tax, like all excise taxes, will raise the price of medicine, hurting everyone. Economic Substance Doctrine. The IRS is now empowered to disallow perfectly-legal tax deductions and maneuvers merely because it judges that the deduction or action lacks “economic substance.” This is obviously an arbitrary empowerment of IRS agents. Employer Reporting of Health Insurance Costs on a W-2. This will start for W-2s in the 2011 tax year. While not a tax increase in itself, it makes it very easy for Congress to tax employer-provided healthcare benefits later. Third Wave: The Alternative Minimum Tax 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. These 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 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. Read more: http://www.atr.org/six-months-untilbr-largest-tax-hikes-a5171##ixzz0xLjYN200
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#1. To: Nebuchadnezzar, war (#0)
Contrary to the claims of some of my critics and some of the editorial pages, I am an ardent believer in the free market. ~ Barack Obama I consider it part of my responsibility as President of the United States to fight against negative stereotypes of Islam wherever they appear. ~ Barack Obama I don't take a dime of their [lobbyist] money, and when I am president, they won't find a job in my White House. ~ Barack Obama I found this national debt, doubled, wrapped in a big bow waiting for me as I stepped into the Oval Office. ~ Barack Obama HEH! What a lying asshole. This guy proudly ties a bow around his smelly turds. Come on war - Tell us all how sweet the aroma of 0bama's "gifts" are!
Big dogs eat first There are a number of things the present US government is doing spectacularly wrong. Perhaps first and foremost is the complete failure to make good on its promise of more transparency in politics. Just a few days ago, both Washington and BP declared that “most of the oil" in the Gulf of Mexico was gone. But that statement was always ridiculous, and is now proven to be so. What were they thinking? Does anyone still realize that there was never any impartial research done into the amount of oil that was spilled? That all the numbers that are available come from BP and the government, both of whom have excellent reasons to hide the truth? As Celente puts it: "Let’s call a spade a spade, it's fascism".
The dividends tax will rise from 15 percent this year to 39.6 percent in 2011 Who is this going to hit the hardest? People who invest for income (rather than stock appreciation). Who mainly does that? Senior citizens.
Maybe 5%. Maybe. And if you reinvest the tax is zero.
GDP numbers have been revised downward multiple times already this year. The present "official estimate" is a 2.4% growth, and expectations are that next week, this will be lowered to 1.4%. The Consumer Metrics Institute begs to differ. Its Growth Index 91-day (one quarter) trailing figure now stands at -5.06%!! Which is 7.46% lower than the present government number, derived from the Department of Commerce's Bureau of Economic Analysis. I'll leave you with a few of the CMI's data and graphs from the front page of its website, as well as some accompanying explanatory text. You decide who you think is telling the truth. NOTE: In the first graph you can see, if you shift the CMI Growth Index forward by a few months, that both it and the official BEA line up quite well; a simple time lag. Except at the very end, today. This can mean one of two things, neither of which are good news: either the BEA has started seriously fooling around with its data, or, and this is still possible, its GDP numbers are about to take a steep plunge. A very steep one. Consumer Metrics Institute's Growth Index Past 4 Years(1)
The capital gains tax will rise from 15 percent this year to 20 percent in 2011 One reason we saw a little economic growth through Q2 this year is that people are moving economic decisions from 2011 to this year to escape the higher taxes.
I'll bet you $100 that we'll see an abnormal spike in suicides of elderly and chronically ill people in December. $1 million is nothing. Someone who owns a convenience store or a Wendy's has property, equipment and inventory worth well over $1 million. Someone who inherits a store will have to sell it in a depressed market just to pay the taxes. This is absolutely criminal. On this one, I blame the GOP. They could have permanently eliminated the evil death tax while they controlled the White and Congress. Why didn't they??? Because they are stupid idiots.
Elderly people invest for income (dividends), rather than stock appreciation, so they can live off of the income, not reinvest it. They will be hardest hit by this.
they are stupid idiots Don't sugar coat it, they're crooks and traitors just like the DNC.
How many 80 year olds are still in business for themselves?
These "hikes" were passed by a GOP congress.
He never incorporated?
S corporation -- all the money flows to individual income. He owned a bar in Daytona beach. There are a lot of small business people out there in similar situations.
That's income...you're going to be responsible for income taxes on whatever you made in the year you die whether you own an S corp or not. It's what happens to the corporation after his passing - which I'm sorry to hear of, btw. Did you maintain the business after his passing or sell it? I'm guessing you sold it after you transferred the ownership of the bar to the estate. He should have had another shareholder with succession rights. A bar...cash biz...he declared every penny?
Irrelevant argument. If but one elderly person has his taxes raised, and there will be millions, and that elderly person is pushed to kill himself, that is the fault of the Muslim-in-Chief Obama. Democrats = death and impoverishment.
Being a Democratic shill means you check your humanity at the door.
Notice how War attacks your father for not incorporating? Like he's some moron for not having jumped through the establishment's hoops? Fuck him and them. Your father earned it, worked harder than the piece of shit Obama ever did in his life, and your dad is to be ridiculed. This is what the Democrats and their "legalized theft" of a tax-code have done to our nation. Class warfare at it's best.
Being a Democratic shill means you check your humanity at the door.
You seem to post that a lot. Did you see it once and thought that it meant something in and of itself. The claim was made that elderly, presumably business owners, would be committing suicide because of the inheritance tax. If there are few elderly business owners... On the other hand, I do recognize that you and logic rarely dwell in the same space.
He didn't have any shareholders. It was just him -- a guy who had to quit school and get a job a 13 during the Great Depression. He built one of the largest auto repair shops on the west side of Detroit. After he divorced my mom at 60, he move to Florida and opened the bar (he didn't even really drink). He catered to local folks rather than tourists. Daytona is not a wealthy area, there isn't any real industry, just people working minimum wage catering to tourists. He built one of the largest local bars in Daytona, with the best bands, crowded every night, etc. He paid the bills but was never able to stash a lot of money because he was catering to the lower class who couldn't afford $4 a pint Microbrews. It was $1.50 long necks and well drinks. He worked because he loved making customers happy. That's what motivated him. Yeah, my sisters and I sold the place. The subsequent owner went out of business within a year. I lost track of it after that. Here's a write up some magazine did on the bar: The Chameleon is located on US-1 in South Daytona. Chameleon's is as close to the look and feel of the bar in Star Wars as you could get on earth. It was a strange mix of cowboys, down on their luck car salesmen, lesbians, sidewalk commandos, swingers, bikers and others that just don't fit in any other category. The age groups run from 20 to 80. The dress is from Dockers to stone wash jeans to the biker look. This is a people watching locals bar. We picked a table near the back bar so we could watch the crowd and ordered drinks. The drinks were disappointingly light, don't worry about having to much to drink. I switched to beer. There is a large selection of draft. The action centers around the dance floor, and there is a DJ and a live band. On the dance floor and surrounding areas there is entertainment aplenty. From the guy dressed in disco clothing dancing by himself, strumming air guitar, to the Alanis Moresette look-alike dancing to her own beat, also very much alone. Then there was the swinger couple working the crowd. Around 11:00 or 12:00 the large dance floor is packed. People watching heaven. The band, "The Hitmen" is perhaps the best rock house band in Florida. The Hitmen have played backup to some of the biggest names in the business. They are true professional musicians. The guitar player "Jerry", is unbelievable. When BB King or Floyd Miles point to Jerry and say take it, he not only can, he does. The band inspires the Star Wars crowd to entertain us observers from another world.
Notice how your an asshole for lying about exactly what I asked? An S corporation, regardless of how its income is declared, is a corporation and can have more than one shareholder and can carry on as a business AFTER the death of one of the shareholders. The shares can also be put into a living trust, which, while complicated, can mitigate the tax issues to the beneficiaries of an estate.
The claim was that we'll see an abnormal spike in elderly and chronically ill business owners commit suicide in December. There are plenty of elderly business owners. Chronically ill ones too. Not everyone has a pension where they can retire at 60 or 65, buy a pair on lime green pants, and play golf for 15 or 20 years.
He sounds like a remarkable man. Most older bar owners - and I have known a few {;^D - usually are. I grew up in a town called Crafton, PA and there were a few bars around. Three of them were owned by different guys who had all "stormed the beach at Normandy". When I got old enough where they thought it was okay to serve me, I became good friends with all of them. They're all dead now.
Incorrect. I have a trust. The trust has nothing to do with federal estate taxes. It has to do with keeping my death and estate "private" rather than opening it up to probate as a will would do. Trusts may or may not offer tax benefits in certain states. That's irrelevant in both Florida and Washington, which don't have state income taxes. Any assets I leave behind will be taxed exactly the same with a trust as without one. Next year there will be a lousy $1 million exemption. Everything over $1M gets taxed at 55%. Figure it out. Let's say a business is worth $1.5M. The heirs would have to pay taxes on $500,000. At 55% that's $275,000. Who has that kind of money laying around to pay taxes? Almost no one. So, you have to sell the business just to pay the taxes. In a depressed real estate market, you'll wind up selling the business at a fraction of what the government claims its worth. Of course, this is after the business owner has already payed a lifetime of income taxes, property taxes, sales taxes, and other taxes on the business.
Let me give you another example of how the tax system works in this country. Several years ago when I was still married to my first wife, we built a fairly nice home in the country. Within the first four years, our property taxes TRIPPLED. We wondered why and couldn't get any answers. We finally hired a person who specialized in appealing these these things to the County. He got our latest assessment, which talked about our swimming pool (we didn't have one), tennis court (we didn't have one), marble floors (we didn't have any), on and on. We thought that some assessor must have written down the wrong address on an assessment, which caused our property taxes to skyrocket. We submitted the paperwork for the appeal. A year later we got a hearing. When we got to the hearing, it was obvious that the County Property Tax Appeal Board hadn't read the paperwork we submitted. They didn't ask us any questions. They were talking among themselves during our presentation. We were shuffled out in 20 minutes. About a month later we got a form letter from the County rejecting our appeal. So, we hired the guy again to appeal to decision to the state government. About 9 months later, we got a letter overturning the County ruling and declaring that the county owed us a refund of about 60% of the taxes we paid since we've been in the house. Over the next year, we sent several copies of this letter to the County, demanding payment. They never paid. Then we wound up preoccupied in a year long divorce and didn't pursue the matter after that. It was a lot of money. More importantly, in my view the government was guilty of FRAUD because the taxes we had to pay were based on an assessment that was demonstrably false. So, I am in no mood for anyone telling me that I don't pay enough taxes, or that government is somehow helpful, or even necessary. Government is evil. I no longer believe that government is a necessary evil.
Title: In striking shift, small investors flee stock markets -----------------------------------------------------------
Yep, people are heading for the hills. Next year is going to be miserable.
Either the government has the money supply or the people do. The government uses the money to buy votes. The people use money to buy goods and services. For the doves: if the government has less money, they wage less war.
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The government uses the money to buy votes. The people use money to buy goods and services. For the doves: if the government has less money, they wage less war. I agree with everything you said. Starve the government. Feed the people.
Nope. I'm not incorrect...trust accounts CAN mitigate taxes if the trust is set up correctly. The probate issue is one that matters less to me.
You have to be a real people person to run a successful small business. My dad was too young for WWII, but he was in the Berlin airlift. He joined the Merchant Marines at 17 and afterwards spent 8 years in the Army Air Corp. He saved his money and when he got out he opened a gas station and then several years later he opened the auto repair shop. Finally he opened his "retirement business" - the bar, and ran it for 14 years before he literally dropped dead. He was a diabetic and he disliked doctors. That's a bad combination. So, he didn't take his insulin. His mom live to 95. He would have been 82 today had he just taken his injection. He was just too stubborn.
I looked into this extensively several years ago and hired an estate attorney to help me. I just also googled it and here's the first thing I found: 2. Living trusts do not save taxes. Anyone who tells you that a living trust will save estate or income taxes is mistaken. A living trust can do nothing about taxes. And while it is true that a living trust may contain the same estate tax-saving provisions as a will, and therefore is better than nothing, the decision to execute a living trust instead of a tax-planned will is going to have no effect on your estate tax bill. Trusts are mostly about keeping your estate out of probate.
Okay...I'll step back...my step mothers money was all from a living trust which passed from her dad to mom to her and her sister...no taxes. The trust was distributed when she passed. When we formed our various S Corps, we established living trusts as a means of shielding some assets of the corporation from inheritance claims that could arise from the legacies of other shareholders. My understanding is that this effectively shields the assets of the corporation from being included in an estate accounting of any of us should we go.
When we looked into this, we found that the laws regarding trusts had changed over the years. The Kennedys and Rockefellers got to keep a lot of their money because of trusts. This is no longer true. If you the are owner of a C-corp, you still have to pay taxes on your personal estate (trust or not), but the C-corp isn't directly affected as an entity from one of the owners dying. It's just like owning stock in any company -- you're an investor in IBM, you die, there is no impact on IBM. But C-corp's pay taxes on their earnings, so they are generally not suitable for independent business owners.
As marriage is no longer defined as a man and woman, simply marry to avoid taxes. Sexless marriages are legal.
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Let me tell you a great story about getting married to get more money from the government. I was in the Air Force from 79 to 83. If you were single, you had to live two to a room in a roach infested barracks, and you got 3 horrible meals a day. If you were married, the military would give you money to live off base. There were two people in my squadron -- both who outranked me. A gay man and a lesbian woman. They got "married" together so they could both collect money to live off base. They did NOT live together. Everyone knew what was happening. This wasn't last year. This was 30 years ago, in the SOUTH, in the MILITARY, at Pope Air Force Base, North Carolina. This is how the world works. So, all of these ridiculous government regulations and tax laws that try to promote one thing over the other are nothing more than a JOKE. It's another argument for simplifying the tax system and getting rid of all of the nonsense about using it to promote societal goals. Smart individuals will always be smarter than collective bureaucratic rules.
Elderly/infants are Always hit the hardest with Change/War. But that doesn't give license to stupid. The 'Elderly' get greedy like anyone else. They follow the 'spin' of the Top 50 000. If the Elderly haven't figured out that Short Term Treasuries are where 100% of retirement should be, then they're reaching. And it's too late for then anyway. Stock up on cat food. the order of the day. ;}
I can make a firm pledge, under my plan, no family making less than $250,000 a year will see any form of tax increase. Not your income tax, not your payroll tax, not your capital gains taxes, not any of your taxes. ~ Barack Obama
#2. To: Liberator (#1)
#3. To: Nebuchadnezzar (#0)
(Edited)
#4. To: jwpegler (#3)
The dividends tax will rise from 15 percent this year to 39.6 percent in 2011
#5. To: All (#4)
#6. To: Nebuchadnezzar (#0)
#7. To: Nebuchadnezzar (#0)
(Edited)
This year, there is no 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
#8. To: mcgowanjm (#4)
(Edited)
And if you reinvest the tax is zero.
#9. To: jwpegler (#7)
the GOP
#10. To: jwpegler (#7)
#11. To: Nebuchadnezzar (#0)
Six Months to Go Until The Largest Tax Hikes in History
#12. To: war (#10)
(Edited)
How many 80 year olds are still in business for themselves?
My dad owned a business and worked 14 hours a day, 7 days a week, until he dropped dead at 74.
#13. To: jwpegler (#12)
#14. To: war (#13)
(Edited)
#15. To: jwpegler (#14)
(Edited)
S corporation -- all the money flows to individual income.
#16. To: war (#10)
How many 80 year olds are still in business for themselves?
#17. To: jwpegler (#14)
S corporation -- all the money flows to individual income. He owned a bar in Daytona beach. There are a lot of small business people out there in similar situations.
#18. To: Nebuchadnezzar (#16)
Irrelevant argument.
#19. To: war (#15)
(Edited)
#20. To: Nebuchadnezzar (#17)
Notice how War attacks your father for not incorporating?
#21. To: war (#18)
(Edited)
If there are few elderly business owners
#22. To: jwpegler (#19)
He didn't have any shareholders. It was just him...
#23. To: war (#20)
(Edited)
The shares can also be put into a living trust, which, while complicated, can mitigate the tax issues to the beneficiaries of an estate.
#24. To: war (#20)
(Edited)
Nebuchadnezzar
#25. To: jwpegler (#3)
Source: msnbc.msn.com
URL Source: http://www.msnbc.msn.com/id/3880308 ... /world_news-the_new_york_times
Toss: ADL,CAIR and the Vatican into the pit they belong in.
#26. To: WhiteSands (#25)
#27. To: jwpegler (#24)
(Edited)
Toss: ADL,CAIR and the Vatican into the pit they belong in.
#28. To: WhiteSands (#27)
Either the government has the money supply or the people do.
#29. To: jwpegler (#23)
Incorrect. I have a trust. The trust has nothing to do with federal estate taxes. It has to do with keeping my death and estate "private" rather than opening it up to probate as a will would do.
#30. To: war (#22)
(Edited)
who had all "stormed the beach at Normandy".
#31. To: war (#29)
#32. To: jwpegler (#31)
#33. To: war (#32)
(Edited)
#34. To: jwpegler (#33)
(Edited)
Toss: ADL,CAIR and the Vatican into the pit they belong in.
#35. To: WhiteSands (#34)
(Edited)
As marriage is no longer defined as a man and woman, simply marry to avoid taxes.
#36. To: jwpegler (#8)
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