Loading ...
Sorry, an error occurred while loading the content.

16324Need to know for all PI's, etc.

Expand Messages
  • suesarkis@aol.com
    Jul 30, 2010
      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:

      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:

      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 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.

      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. 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 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 Read more:

      Now your insurance is 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

      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…

      PROVISIONS-(sec. 9001, 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 person in your address book.

      People have the right to know the truth because an election is coming in

      [Non-text portions of this message have been removed]