From an email I just received. Please, if you see any falsehoods in here point them out. I fear it's true but suspect they might have stretched it a bit.
Be Prepared for big tax hikes in 2011!!!!!!!!!!!!!!!!!
Just so there’s no surprises…
>
> 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: <
>target="_blank">
>target="_blank">http://www.atr.org/six-months-untilbr-largest-tax-hikes-a5171>;
>rel=nofollow target="_blank">
>class="parsedLink" target="_blank">http://www.atr.org/six-months-untilbr-largest-tax-hikes-a5171##ixzz0sY8waPq1
>
>
> 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 . . . the dupes, er, dopes, 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.
> - Go to Kiplingers and read about 13 tax changes that could affect you. Number 3 is what is above.
>
>
>
> Why am I sending you this? The same
>reason I hope you forward this to every single person in your address book.
>
> People have the right to know the truth
>because an election is coming in November!
Be Prepared for big tax hikes in 2011!!!!!!!!!!!!!!!!!
Just so there’s no surprises…
>
> 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: <
>target="_blank">
>target="_blank">http://www.atr.org/six-months-untilbr-largest-tax-hikes-a5171>;
>rel=nofollow target="_blank">
>class="parsedLink" target="_blank">http://www.atr.org/six-months-untilbr-largest-tax-hikes-a5171##ixzz0sY8waPq1
>
>
> 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 . . . the dupes, er, dopes, 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.
> - Go to Kiplingers and read about 13 tax changes that could affect you. Number 3 is what is above.
>
>
>
> Why am I sending you this? The same
>reason I hope you forward this to every single person in your address book.
>
> People have the right to know the truth
>because an election is coming in November!
