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Fw: Read and Remember, Upcoming Taxes for January 2011

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  • june miller
    Recieved this information from one of our investment service agents..Hopefully it does not happen in 2011.. but was wondering where the money was coming from
    Message 1 of 1 , Nov 4, 2010
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    Recieved this information from one of our investment service agents..Hopefully it does not happen in 2011.. but was wondering where the money was coming from for every one to be insured under Presidents plan.. Our co- pays and deductables went up January of 2011 so did many of the  testing at the Hospitals...
     
     

    Date: Monday, November 1, 2010, 10:48 PM


    I hope all of you will read the body and Attachment of this email to see
    what is coming at us on January 1, 2011.
     
    If you "know facts that absolutely disputes" any of this research please
    advise me... really it would make me very happy.... This is for your
    awareness.  Pass it on to your friends if you care to!!!!

     

    PLEASE READ!!!!!

    This is what Warren Buffett has researched:
     
    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 at the end.



    In just two months, on January 1, 2011, 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, here's what happens... (read it to the end, so you
    see all three waves)...


        
    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 highermarginal 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 only, there is no death tax.  (It's a quirk!)  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, a business, a retirement account, could easily pass along a
    death tax bill to their loved ones. 

    Think of the farmers who don't make much money, but their land, which
    they purchased years ago with after-tax dollars, is now worth a lot of
    money.  Their children will have to sell the farm, which may be their
    livelihood, just to pay the estate tax if they don't have the cash
    sitting around to pay the tax.  Think about your own family's assets.

    Maybe your family owns real estate, or a business that doesn't make much
    money, but the building and equipment are worth $1 million.  Upon their
    death, you can inherit the $1 million business tax free, but if they own
    a home, stock, cash worth $500K on top of the $1 million business, then
    you will owe the government $275,000 cash!  That's 55% of the value of
    the assets over $1 million!  Do you have that kind of cash sitting
    around waiting to pay the estate tax?



    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 "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 (Health Savings Account) 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 (AMT) 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 currently 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:
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    And worse yet?


    Now, your insurance will be 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 . . . those 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 worse.



    This is how the government is going to buy insurance for the 15% that
    don't have insurance and it's only part of the tax increases.

    Not believing this???  Here is a research of the summaries.....

    On page 25 of 29: TITLE IX REVENUE PROVISIONS- SUBTITLE A: REVENUE
    OFFSET 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 single person in your address book.

    People have the right to know the truth !!!!!!!

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