By Steve Adcock â‹… July 2, 2010 â‹… Email This Post â‹… Print This Post â‹… Post a commentSome weeks ago we warned there was an avalanche of taxes headed our way. Now come a breakdown of what American families will be facing on January 1st, of 2011 courtesy of Americans for Tax Reform at www.atr.org/.
The article is tiled: â€œSix Months to Go Until The Largest Tax Hikes in History.â€ You will find it (HERE.).
The article by Ryan Ellis explains that the massive tax increase will strike more as a tsunami â€“ in waves. Mr. Ellis says: â€œIn 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.â€The first great wave will be: Expiration of 2001 and 2003 Tax Relief. The second great wave will be: Obamacare, and the third great wave will be: The Alternative Minimum Tax and Employer Tax Hikes.
Mr. Ellis goes on to say, in his excellent article, the following: â€œIn 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.
So what will happen? Mr. Ellis explains: â€œPersonal 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%
According to Mr. Ellis article married Americans and American families will not escape, either. He explains there will be higher taxes on marriage and American families. He states: â€œThe â€œmarriage penaltyâ€ (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.â€
And guess what â€“ the DEATH TAX will return! Mr. Ellis explains; â€œThis 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.
If you have made an effort to be frugal and save, you are in trouble from the tax man, as well: Ellis says there will be: â€œHigher 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.
Then comes the second wave. It will come as no surprise to those of us who tried to warn our fellow Americans that socialized medicine in America would cost the living daylights out of Americans. So here it comes. We now know, thanks to Mr. Ellisâ€™ article there are over twenty new or higher taxes in Obamacare.
Several of these taxes will first go into effect on January 1, 2011. They include: â€œThe â€œMedicine Cabinet Tax,â€ â€œThe â€œSpecial Needs Kids Tax,â€ and â€œThe HSA Withdrawal Tax Hike.â€
(You REALLY need to read Mr. Ellisâ€™ article (HERE.) for the startling details of these taxes.
Then comes the Third wave of taxes: â€œThe Alternative Minimum Tax and Employer Tax Hikes.â€ Mr. Ellis explains: â€œWhen Americans prepare to file their tax returns in January of 2011, theyâ€™ll be in for a nasty surpriseâ€”the AMT wonâ€™t be held harmless, and many tax relief provisions will have expired. The major items include:â€
The AMT will ensnare over 28 million families, up from 4 million last year.
Small business expensing will be slashed and 50% expensing will disappear.
Taxes will be raised on all types of businesses.
Tax Benefits for Education and Teaching Reduced.
Charitable Contributions from IRAs no longer allowed.
Again we urge you to read this article by Ryan Ellis (HERE.)
With the US economy literally teetering on the edge of collapse â€“ what do you suppose will happen when this shake down of American citizens begins next year and they find they must face the fact that what many conservative commentators told them was going to happen has happened, and, too, they find themselves facing financial ruin. Desperation time will certainly be upon us. The reaction of a P.Oâ€™ed American citizenry will make the reaction of the people of Greece look like a Sunday school picnic!
America, we are in dangerous times. Desperate people are completely unpredictable. There is yet a short time to prepare for the coming anarchy in America.
First, we must get to the polls, in droves; this coming November and try to break the grasp the socialist/democrats have on our national and state governments. Even if we are successful â€” we can still only hope to blunt the effects of the on rushing tsunami of governmental demands for your money to fuel an ever growing, entirely too powerful, central government that is sucking the life out of America.
About the Author Steve Adcock is the founder and developer of SmallGovTimes.com http://www.smallgovtimes.com/2010/07/largest-tax-hikes-in-history-coming-january-2011/