100 DAYS UNTIL LARGEST TAX HIKES IN HISTORY...

[brotherplanet]

100 Days Until Taxmageddon

Sunday will mark the start of the 100-day countdown to “Taxmageddon” – the date 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, 2013:

First Wave: Expiration of 2001 and 2003 Tax Relief

In 2001 and 2003, the GOP Congress enacted several tax cuts for small business owners, families, and investors (later re-upped by President Obama and Democrat Congress in 2010). The following tax hikes will occur on January 1, 2013:

Personal income tax rates will rise on January 1, 2013. The top income tax rate will rise from 35 to 39.6 percent (this is also the rate at which the majority 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 a new and 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 coming on January 1, 2013. The “marriage penalty” (narrower tax brackets for married couples) will return from the first dollar of taxable 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.

Middle Class Death Tax returns on January 1, 2013. The death tax is currently 35% with an exemption of $5 million ($10 million for married couples). For those dying on or after January 1 2013, 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 on January 1, 2013. The capital gains tax will rise from 15 percent this year to 23.8 percent in 2013. The top dividends tax will rise from 15 percent this year to 43.4 percent in 2013. This is because of scheduled rate hikes plus Obamacare’s investment surtax.

Second Wave: Obamacare Tax Hikes

There are twenty new or higher taxes in Obamacare. Some have already gone into effect (the tanning tax, the medicine cabinet tax, the HSA withdrawal tax, W-2 health insurance reporting, and the “economic substance doctrine”). Several more will go into effect on January 1, 2013. They include:

The Obamacare Medical Device Tax begins to be assessed on January 1, 2013. Medical device manufacturers employ 409,000 people in 12,000 plants across the country. This law imposes a new 2.3% excise tax on gross sales – even if the company does not earn a profit in a given year. Exempts items retailing for <$100.

The Obamacare Medicare Payroll Tax Hike takes effect on January 1, 2013. The Medicare payroll tax is currently 2.9 percent on all wages and self-employment profits. Starting in 2013, wages and profits exceeding $200,000 ($250,000 in the case of married couples) will face a 3.8 percent rate.

The Obamacare “Special Needs Kids Tax” comes online on January 1, 2013. Imposes a cap on FSAs of $2500 (now unlimited). Indexed to inflation after 2013. 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 be used to pay for this type of special needs education. This Obamacare cap harms these families.

The Obamacare “Haircut” for Medical Itemized Deductions goes into force on January 1, 2013. Currently, those facing high medical expenses are allowed a deduction for medical expenses to the extent that those expenses exceed 7.5 percent of adjusted gross income (AGI). The new provision imposes a threshold of 10 percent of AGI. Waived for 65+ taxpayers in 2013-2016 only.

Third Wave: The Alternative Minimum Tax and Employer Tax Hikes

When Americans prepare to file their tax returns in January of 2013, they’ll be in for a nasty surprise—the AMT won’t be held harmless, and many tax relief provisions will have expired. These tax increases will be in force for BOTH 2012 and 2013. The major items include:

The AMT will ensnare over 31 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 31 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.

Full business expensing will disappear. In 2011, businesses can expense half of their purchases of equipment. Starting on 2013 tax returns, all of it will have to be “depreciated” (slowly deducted over many years).

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://atr.org/days-taxmageddon-a7203#ixzz27EjhZXha

[KneelandBobDylan]

w00t!

[DEATH ROW JOE]

Another cut and paste job from our resident idiot. You're posting inaccurate crap from Grover Norquist's website. Guarantee you did not read a word of it either. You have to be the dumbest fuck who has ever posted to this site.

Basically Norquist's article is talking about letting the Bush's tax cuts expire combined with the taxes in Obamacare. First problem with the article is Obama said he is not going to let the Bush tax cuts expire for households making less than 250K.

Second, this is not even close to the largest tax hike in history. The Revenue Act of 1942 increased taxes by 5.2% of GDP, Revenue Act of 1941 increased revenue by 2.1% of GDP and Revenue Act of 1943 increased revenue by 1.16% of GDP and the Revenue Act of 1940 increased revenue by 1.6% of GDP.

The largest post World War II tax hike was Tax Equity and Fiscal Responsibility Act of 1982 which increased revenue by 1.23% of GDP

The second largest was Omnibus Budget Reconciliation Act of 1993 which increased revenue by .83% of GDP

Then in between those big tax hikes you have:

Social Security Amendments of 1983 = .24% of GDP

Deficit Reduction Act of 1984 = .49% of GDP

Tax Reform Act of 1986 = revenue neutral tax reform

Omnibus Budget Reconciliation Act of 1987 = .30% of GDP

Omnibus Budget Reconciliation Act of 1990 = .57% of GDP (popa Bush's read my lips tax hike)

The Obamacare tax is .43% of GDP. Letting all the Bush tax cuts expire completely is .7% of GDP. Together it's 1.13% of GDP, so far less than the cumulative tax hikes from 82 to 93 under Reagan, Bush and Clinton.

From 93 to 2000, the economy did very well after all those tax hikes. There was a capital gains cut in 97. Letting the Bush tax cuts expire does not even return to the 1996 rates. On top of that, Obama said he was going to preserve the Bush rates for households making less than 250K.

So the likely scenario is Obamacare tax plus a partial return to the 2000 rates. That is not even close to the largest tax hike in history. It's not even the largest post WW II tax hike It's probably the 3rd largest after 82 and 93 assuming raising taxes on households above 250K is about .4% of GDP.

The numbers for tax bills prior to 2006 come from this document prepared by Bush's treasury department (page 4).

Revenue Effects of Major Tax Bills
http://www.treasury.gov/resource-center ... 6-2011.pdf

The numbers on Obamacare and letting Bush tax expire come from the the CBO.

So your post fails again dumb ass. There is not 100 days until the largest tax hikes in history, not even close. You are a liar.

[tylamonroe]

LMOA at Joey accusing ANYONE of cut and paste.

[Danzig in the Dark]

If brotherplanet has ever had an original thought, I would like to know where he cut and pasted it from.

[brotherplanet]

Well, joey, sorry I'm not writing the articles myself. Instead I use them to back something up, cause, yah know, when people just say shit others want to see the info online to back it up.

You know how this works, right?

LMOA at Joey accusing ANYONE of cut and paste.

HAHAHAHAHAHAHA!!!!!


Joey, you do also know your graphs are cut and paste jobs, right? I mean, you do know that, right?

[Luminiferous]

LMOA at Joey accusing ANYONE of cut and paste.

LMOA?