So Seniors, Obama Told You That He Wouldn't Raise Taxes
You Wanted Change, Well You GOT IT!
How that Hope and Change working for you? I hope that we can change presidents come Novemeber 2012, or we may face more change than we will ever be able to unchange.
So, you voted for Obama because you didn’t like George Bush. You bought into all this HOPE AND CHANGE in politics. Well, I HOPE you have some extra CHANGE when the Democrats are through raising your taxes. Most Americans are oblivious to what goes on in our government once the election is over, they voted for a new President and most didn’t even know why, just that it wasn’t George Bush or a Republican. Now they don’t know the disaster about to hit them, starting on January 1st, 2011.In addition to increased tax rates for all income brackets, the value of the health insurance provided by your employer, or government entity. Will be added to your taxable gross income, you just added another $1500 - $4000 to your tax bill.
Remember what Democrat Nancy Pelosi said about the 2700 page Obamacare Bill??" We have to pass the healthcare bill to find out what’s in it. We are finding out more and more what’s in it, and to no great surprise to most of us, it a disaster waiting to happen.
This came from the Senior Tax Editor for Kiplinger Letters
Subject: This Will be Difficult For All of Us
In just six months, on January 1, 2011, the largest tax hikes in the
history of America will take effect. This will kill any hope of any kind of recovery in America, Hope and Change? They will hit families and small businesses in three great waves.
On January 1, 2011, here's what happens, there is a lot here so read it carefully and completely.
Expiration of 2001 and 2003 Tax Relief (also know by the Democrats as the Bush Tax cuts)
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 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 one million dollars. Do you have that kind of cash around waiting to pay the estate tax? What kind of incentive does that give people to pass on their estates to their children, especially when they know what will happen when they can’t pay the tax bill?
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.
There is over twenty new or higher taxes in Obamacare. Several will
first go into effect on January 1, 2011. These Taxes are to pay for Obamacare there will not start providing benefits until 2014. 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 America, and many of them use FSAs to pay for special needs
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 cannot 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.
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. When business can’t afford to buy new equipment because of the tax liability that means that they can’t hire new people, this is the CHANGE you were looking for? 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 it will cost jobs. Do you think we can afford to lose more job than we have lost now?
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.
Now, HOPE you’re sitting down! Here is CHANGE you can believe in, your insurance will be INCOME on your W2's!
One of the surprises we'll find come next year, is a little "surprise" that 99% of us had no idea was included in the "new and improved" healthcare legislation, the democrats who didn’t read the bill the bill until it was passed and 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.
So, 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.
Don’t believe me? Here are the research 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 Kiplinger’s and read about the 13 tax changes that could affect you. Number 3 is what is above.
So Obama said, “I won’t raise taxes on the middle class.” He didn’t lie, he raising taxes on everybody!
The only chance to stop this is to vote in November, but, if you put the same people back in, you get the same results. This the CHANGE America needs!