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Warning: Three new tax waves coming

Faster horses

Well-known member
This is long, but worth being aware of,, we need to stop them on election day if at all possible......We need to get our country back,, we know they are ruining our freedoms and turning this into a Muslim Country!!



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WARNING.....Three great TAX waves Coming!



Start saving your money!
The last one is the best!



"It
takes twenty years to build a reputation and five minutes to lose it. If you
think about that, you will do things differently"
-Warren Buffett





In just six months, on
January 1, 2011, 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,
here’s what happens... (read it to the end, so you see all three waves)...







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 highermarginal 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 $1 million! Do you have that kind of cash sitting around
waiting to pay the estate tax?



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 (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 IRAsand other tax-advantaged accounts, which remain at 10 percent.




Third Wave:

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.

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%3E;%C2%A0


And worse yet?


Now, your insurance will be 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 . . . those 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 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.

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.
 
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