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Six Months to Go Until The Largest Tax Hikes in History

July 1, 2010

Six Months to Go Until

The Largest Tax Hikes in History

From Ryan Ellis on Thursday, July 1, 2010 4:15 PM

In 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:

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 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, 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.

via Six Months to Go Until The Largest Tax Hikes in History.

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4 Comments
  1. James E Fancher permalink
    July 13, 2010 4:54 AM

    Pure and simple, BULL SHIT

  2. Margaret permalink
    July 23, 2010 2:57 PM

    You took my job by letting this country ship work out of the USA, you took my unemployment away from me after 6 months, now you want more taxes. I invited myself to your house for dinner when I wrote my Congress people after unemployment, buy no one replied. What else do you want from me?

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