Well Bush's tax cuts will be expiring and the new health care taxes and other taxes or loss of tax deductions will be coming into effect starting Jan 1st of 2011. Many people claim Bush only cut taxes for the wealthy but as you'll see below, there was a plethora of tax cuts for the middle class as well that will not be repealed.
List of new taxes and loss of deductions coming next year ala the democrats (From Investors.com):
- Students can no longer deduct tuition or student fees
- New limits placed on education tax credits
-Teachers can no longer deduct classroom expenses
-Employer provided educational aid will be restricted
- No longer able to deduct student loan interest
- Death tax returns at 55% for anyone with $1 or more.
- Bush tax cuts expire. CBO says will cost us 2.6 trillion through 2020 and $115 billion just next year if they aren't renewed.
- Lowest bracket for personal income tax increases 50%
- Highest bracket goes from 35% - 39%
- Marriage Penalty returns
- Captial gains tax increases 33%
- Tax on dividends increases by 164%
- Healthcare Reform adds 3.8% Medicare levy for anyone making $200k+
- Child tax credit cut in half from $1,000 - $500 (this will really hurt the poor and middle class)
- Standard deductions for couples will now be lowered to that of single filers.
- Medicine cabinet tax - you can no longer use health savings accounts, flexible spending accounts, or health reimbursement pretax dollars to purchase nonprescription, over-the-counter medicines.
- HSA Withdrawal Tax Hike: Additional 20% tax on nonmedical early withdrawals from HSA's
-Brand Name Drug Tax: Makers and importers of brand name drugs will be taxed $2.5 billion in 2011, then progressively increases each year, reaching 4.2 billion a year in taxes by 2018. This will be passed on to the consumer price of prescription drugs
-Economic Substance Doctrine: The IRS is now empowered to disallow perfectly legal tax deductions and maneuvers merely because it judges that the deduction or action lacks 'economic substance'.
- Alternative Minimum Tax will now subject 28.5 million new families to the tax next year, as opposed to 4 million this year
- Small businesses can no longer expense up to $250,000 of equipment, now they can only expense $25,000.
More detailed description of each tax here:
http://www.investors.com/NewsAndAnalysis/Article/541131/201007211841/The-Tax-Tsunami-On-The-Horizon.aspx
So please, don’t tell me the democrats don’t plan on raising taxes of any kind for anyone making less than $250k. It is so patently false that I don’t know what else to respond with.
List of new taxes and loss of deductions coming next year ala the democrats (From Investors.com):
- Students can no longer deduct tuition or student fees
- New limits placed on education tax credits
-Teachers can no longer deduct classroom expenses
-Employer provided educational aid will be restricted
- No longer able to deduct student loan interest
- Death tax returns at 55% for anyone with $1 or more.
- Bush tax cuts expire. CBO says will cost us 2.6 trillion through 2020 and $115 billion just next year if they aren't renewed.
- Lowest bracket for personal income tax increases 50%
- Highest bracket goes from 35% - 39%
- Marriage Penalty returns
- Captial gains tax increases 33%
- Tax on dividends increases by 164%
- Healthcare Reform adds 3.8% Medicare levy for anyone making $200k+
- Child tax credit cut in half from $1,000 - $500 (this will really hurt the poor and middle class)
- Standard deductions for couples will now be lowered to that of single filers.
- Medicine cabinet tax - you can no longer use health savings accounts, flexible spending accounts, or health reimbursement pretax dollars to purchase nonprescription, over-the-counter medicines.
- HSA Withdrawal Tax Hike: Additional 20% tax on nonmedical early withdrawals from HSA's
-Brand Name Drug Tax: Makers and importers of brand name drugs will be taxed $2.5 billion in 2011, then progressively increases each year, reaching 4.2 billion a year in taxes by 2018. This will be passed on to the consumer price of prescription drugs
-Economic Substance Doctrine: The IRS is now empowered to disallow perfectly legal tax deductions and maneuvers merely because it judges that the deduction or action lacks 'economic substance'.
- Alternative Minimum Tax will now subject 28.5 million new families to the tax next year, as opposed to 4 million this year
- Small businesses can no longer expense up to $250,000 of equipment, now they can only expense $25,000.
More detailed description of each tax here:
http://www.investors.com/NewsAndAnalysis/Article/541131/201007211841/The-Tax-Tsunami-On-The-Horizon.aspx
So please, don’t tell me the democrats don’t plan on raising taxes of any kind for anyone making less than $250k. It is so patently false that I don’t know what else to respond with.
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