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  • Yannis Mousouros
    ... From: Bill Yarbrough Date: Sun, Jul 25, 2010 at 6:36 AM Subject: FW: I thought you would find this interesting...Read and weep To: Bill
    Message 1 of 1 , Jul 25, 2010


    ---------- Forwarded message ----------
    From: Bill Yarbrough <wty@...>
    Date: Sun, Jul 25, 2010 at 6:36 AM
    Subject: FW: I thought you would find this interesting...Read and weep
    To: Bill Yarbrough <wty@...>


     

    ---------------------------------------------------------------------------------------------------------

           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:
          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 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: http://www.atr.org/six-months-untilbr-largest-tax-hikes-a5171##ixzz0sY8waPq1
                                            
            
              
    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 t
    he 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 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.....
               

                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 because an election is
                coming in November.
      
                
              
              
            

     


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