6 Months Until The Largest Tax Hikes in U.S. History

[Matt Collins]

Six Months Until The Largest Tax Hikes in U.S. History

In just six months, unless Congress takes drastic action, American families and small businesses will be slammed by the largest tax hikes in U.S. history -- affecting almost every American taxpayer.



So warns Americans For Tax Reform (ATR), a national nonprofit lobbying organization that works for lower taxes and fight tax increases.

The tax assault begins January 1, 2011, when a wide variety of tax relief measures are set to expire, and when new taxes from the Democratic health care plan will take effect.

Unless stopped, the tax explosion will come in what ATR has identified as three "waves."

1) The First Wave: Expiration of 2001 and 2003 Tax Relief

In 2001 and 2003, 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 lowest rate will rise from 10 to 15 percent. All the rates in between will also rise:
- 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. The child tax credit will be cut in half. Other tax burdens for families will also kick in.

* The return of the death tax: The families of those dying on or after January 1, 2011 will face a 55 percent top death tax rate on estates over $1 million.

* 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.

2) The Second Wave: Obamacare Taxes

ATR has identified over twenty new or higher taxes in the recently-passed Democratic health care bill. Several go into effect on January 1, 2011.

3) The Third Wave: The Alternative Minimum Tax and Employer Tax Hikes

* In 2011 the Alternative Minimum Tax, which affected 4 million families last year, will hit over 28 million families. These families will have to calculate their tax burdens twice, and pay taxes at the higher level.

* Tax increases on business: "Literally scores" of tax hikes on business are scheduled, ATR says.

* Tax benefits for education and teaching reduced: This includes deductions and tax credits affecting tuition, fees, interest on student loans, teacher classroom expenses, employer-provided educational assistance and other educational matters.

That's a sampling. ATR has more detail on all of this at in their bulletin "Six Months to Go Until The Largest Tax Hikes in History," at the link earlier in this article.

[awake]

This is the price to pay to keep evil permanently bailed out.

[libertybrewcity]

good-bye United States. Can states nullify taxes?

[phill4paul]

"When I start presenting some very difficult choices to the country, I hope some of these folks who are hollering about deficits and debt step up, because I'm calling their bluff," the president said at a press conference during the G-20 summit in Toronto.

Guess he was truthful on at least one thing.

[michaelwise]

Don't forget about estate taxes going from 0 to 50%. You better die before the end of the year.

[Fredom101]

Six Months Until The Largest Tax Hikes in U.S. History

In just six months, unless Congress takes drastic action, American families and small businesses will be slammed by the largest tax hikes in U.S. history -- affecting almost every American taxpayer.



So warns Americans For Tax Reform (ATR), a national nonprofit lobbying organization that works for lower taxes and fight tax increases.

The tax assault begins January 1, 2011, when a wide variety of tax relief measures are set to expire, and when new taxes from the Democratic health care plan will take effect.

Unless stopped, the tax explosion will come in what ATR has identified as three "waves."

1) The First Wave: Expiration of 2001 and 2003 Tax Relief

In 2001 and 2003, 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 lowest rate will rise from 10 to 15 percent. All the rates in between will also rise:
- 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. The child tax credit will be cut in half. Other tax burdens for families will also kick in.

* The return of the death tax: The families of those dying on or after January 1, 2011 will face a 55 percent top death tax rate on estates over $1 million.

* 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.

2) The Second Wave: Obamacare Taxes

ATR has identified over twenty new or higher taxes in the recently-passed Democratic health care bill. Several go into effect on January 1, 2011.

3) The Third Wave: The Alternative Minimum Tax and Employer Tax Hikes

* In 2011 the Alternative Minimum Tax, which affected 4 million families last year, will hit over 28 million families. These families will have to calculate their tax burdens twice, and pay taxes at the higher level.

* Tax increases on business: "Literally scores" of tax hikes on business are scheduled, ATR says.

* Tax benefits for education and teaching reduced: This includes deductions and tax credits affecting tuition, fees, interest on student loans, teacher classroom expenses, employer-provided educational assistance and other educational matters.

That's a sampling. ATR has more detail on all of this at in their bulletin "Six Months to Go Until The Largest Tax Hikes in History," at the link earlier in this article.

No, this won't happen.
They will extend all tax cuts and simply hyper-inflate the dollar.

So the economy will still crash, but they won't raise taxes in any significant way...just the invisible tax.

[Rancher]

Relax...

President Obama promised that he will not raise taxes on those making less than $250k/year.

"..., his tax plan will help restore bottom-up economic growth that helps create good jobs in America and empowers all families achieve the American dream.

http://www.barackobama.com/taxes/

[michaelwise]

Don't forget about estate taxes going from 0 to 50%. You better die before the end of the year.

George Steinbrenner picked a good time to die.

[heavenlyboy34]

How are these determined "the largest tax hikes"? Are they compared to all tax hikes in history in terms of absolute dollars?

[heavenlyboy34]

good-bye United States. Can states nullify taxes?

Only if they surrender federal funding, which won't happen at this time because people are addicted to federal funds.

[sevin]

No, this won't happen.
They will extend all tax cuts and simply hyper-inflate the dollar.

So the economy will still crash, but they won't raise taxes in any significant way...just the invisible tax.

I'm starting to think they won't hyper-inflate. Instead they'll just tax us more and make us work til death. But either way we're $#@!ed.

George Steinbrenner picked a good time to die.

I wonder if some other rich old millionaires will die "of old age/heart attack/whatever" this year.

[HOLLYWOOD]

No, this won't happen.
They will extend all tax cuts and simply hyper-inflate the dollar.

So the economy will still crash, but they won't raise taxes in any significant way...just the invisible tax.

What they do in CONgress is: Increase the Tax Rates at the Same Time offering Tax Credits, so there's no increase, UNTIL the Tax Credits are left to expire. Old Gimmick of Governments on how to tax and fool the dumb-ass constituents.

The ASS HATS at the IRS don't even have the information on 2010 AMT. So you CAN'T adjust your write offs, capital gains, earnings, etc, to alleviate AMT. Kinda a rigged game by the thieves @ the US Treasury, eh?

http://www.irs.gov/businesses/small/...150703,00.html

History on the AMT and how it's evolved into a $50-100 Billion Inflation Gravy Train for the US Government...

http://hnn.us/articles/11819.html

The New York Times reported that "by 2010, nearly 30 million taxpayers will be hit by AMT -- among them, a staggering 94 percent of married filers who have children and make $75,000 to $100,000." The Alternative Minimum Tax was designed as a parallel tax system to the federal income tax and checks it to ensure that that the people in higher tax bracket don't evade paying any taxes through loopholes.

Government Loves Inflation!

Tax Reform Act of 1969 to target the rich. But because the rates were not adjusted for inflation, it now targets not only the rich but also the middle class, and there seems to be no end to the problems its causes.

With the AMT most tax deductions are disallowed. In 1969 the minimum tax was a 10 percent flat rate. Over the years the AMT has evolved to also include a corporate AMT; with each tax reform effort from the Carter to Clinton Administration the AMT has increased. As of the latest revision, which was passed in 1993, there is a two tier system: 26 percent and 28 percent for individuals. Here is a look back through media reports and presidential and congressional messages about the origins of the AMT in the Johnson and Nixon Administrations and its subsequent revisions in the Carter, Reagan, Bush and Clinton Administrations.

President Lyndon Johnson and the Origins of the AMT


The story of the AMT begins with the Vietnam War. The government needed to secure additional funds to finance the war which in 1968 and 1969 was at its peak.



According to Sheldon D. Pollack in The Failure of U.S. Tax Policy: Revenue and Politics, the need for new revenues led the executive branch "to embrace a conception of 'tax reform' consisting in closing revenue 'leaks' and reversing the 'erosion' of the tax base concomitant to the many preferences that had crept into the tax code." In his administration's last month in office President Lyndon Johnson named Joseph Barr treasury secretary. Both Barr and Assistent Secretary of the Treasury Stanley S. Surrey instigated the proposals to tighten the tax loopholes that eventually led to the creation of the AMT.




August 1969 as he was preparing the next year's budget Barr warned that the country faced a taxpayers' revolt. He explained, according to the Washington Post, that in 1967 there were a total of 155 individuals with incomes over $200,000 who did not pay any federal income taxes; twenty of them were millionaires. These individuals successfully used all tax loopholes available to legally evade paying taxes. The revelation attracted wide media attention and led to public shock. As he presented the next annual budget, published in the final weeks of his administration, President Johnson indicated that the problem needed to be addressed, but not by him:

We believe that in justice to the next Administration that will take office within the next month and will have to live with and administer any legislation passed, it is only appropriate that they have the opportunity to examine carefully and make their judgments to these matters.

Several possible solutions were discussed at the time including, according to anonymous sources with the House Ways and Means Committee run by Wilbur Mills, "the establishment of some sort of minimum tax on persons with large incomes who escape all taxation at present because their income is entirely from sources that receive preferred tax treatment, such as oil wells or municipal bonds." ("Tax Law changes Sought by Mills," NYT, January 1, 1969)

[Matt Collins]

I'm starting to think they won't hyper-inflate. Instead they'll just tax us more and make us work til death. But either way we're $#@!ed.

Inflation itself is a tax

[osan]

Only if they surrender federal funding, which won't happen at this time because people are addicted to federal funds.

Certainly true in WV. It is sickening.

[osan]

I'm starting to think they won't hyper-inflate. Instead they'll just tax us more and make us work til death. But either way we're $#@!ed.

A reasonable possibility. Consider all the "money" they dreamed up out of thin air and injected into the economy. Where has it all gone? Much in the hands of various large asset-holders - banks, insurance companies, and the like. If that money comes into action, the economy will crash and burn badly. In order to avoid this, most if not all of that money must be taken back out. What better source of extraction than "us"? It would constitute yet another indirect theft, only on far larger scales than previously dared. I'm waiting for the "austerity measures" language to come forth, along with the "we must all sacrifice" talk. I am almost willing to predict that something along those lines will be forthcoming some time after either the 2010 or 2012 elections.

[Anti Federalist]

Guess he was truthful on at least one thing.

Not bloody likely.

YouTube - President Obama s Pledge Never to Raise Taxes on Anyone Making Less Than 250 000 a Year

[HOLLYWOOD]

Certainly true in WV. It is sickening.

FOX's Willis Report just covered this yesterday... over 50% of West Virginia's economy is from federal funds and it's the 3rd poorest state in the nation (Lowest standard of living) Simply Startling.

I'll have to look into her show webpage for the technical references to the data they covered.

[Number19]

No, this won't happen.
They will extend all tax cuts and simply hyper-inflate the dollar.

So the economy will still crash, but they won't raise taxes in any significant way...just the invisible tax.

The enormity of all this is beginning to sink in, even with some Democrats. Even they cannot ignore the economic consequences with the "recovery" so weak. Yes, there are MSM reports that the Democrats are talking about extensions. Then they turn right around and say that the deficit is unsustainable and taxes are going to have to go up.

They are counting on Obama's National Commission on Fiscal Responsibility and Reform to come up with a plan that they will call a "bipartisan" solution, to raise taxes, mixed with some spending cuts. There are 18 members, 6 Republicans, and any plan has to be supported by a total of 14 members. So at least 2 Republicans have to be on board, giving the allusion of bipartisanship. Their report is due December 1st.

[Number19]

Starting September 1st, there will be a 1% Medicaid payment cut for doctors in Texas. Doesn't sound like a lot - only 1% - but doctors are threatening to opt out. Others are saying they will not accept new patients, but will keep their current patients. Currently Texas has about 15,000, out of about 49,000 practicing doctors, who currently take Medicaid patients.

[free1]

November will change everything.

Don't worry, but please do your part!

And more!

[osan]

FOX's Willis Report just covered this yesterday... over 50% of West Virginia's economy is from federal funds and it's the 3rd poorest state in the nation (Lowest standard of living) Simply Startling.

I'll have to look into her show webpage for the technical references to the data they covered.

Actually, it is THE poorest state in the nation. Not sure where they got 3rd from.

Summers county, where I used to live, is 90% on welfare. There are about 13K residents there and less than 3000 have jobs. It and Logan county are the two poorest counties in the USA. The girls out on 3rd Avenue in Hinton (Summers County seat) have a baby every 2 years like clockwork to keep the checks coming. It is appalling and one of the reasons we moved up to Charleston. I got tired of the same crack ho's propositioning me day after day. I showed one my large frame .357 on my hip and told her never to speak to me again. Her eyes got all big and she skedaddled. The following day, she hit on me again as if she'd never met be before. That $#@! gets tired after awhile.

To be honest, I am surprised WV gets only 50% from federal funds. I would have placed it closer to 70%. Still, 50 is downright depressing to contemplate.

[YumYum]

November will change everything.

Don't worry, but please do your part!

And more!

What?? "Bush/Chaney, Part 2"?

[ChaosControl]

Gotta love the price of corporatism.

[rp4prez]

Fabulous.. Well if they don't do something there goes all the savings I'm getting by refinancing my house. =/

[TNforPaul45]

Let's see...

Congress increases our taxes, under both parties....
Congress refuses to follow the will of the majority of people in both foreign and domestic policy...
We have repeatedly sought redress of our grievances to just be laughed at by our congressmen...

The president is effectively a monarch with executive orders, signing statements, and memos (bush and Obama)

...any of this sound familiar history buffs?