Tax and Spend Democrats Sure
to Hit ALL of Us in 2011
In the ultimate condemnation of the Democratic Party and a scenario likely to become common across the nation in the next two months . . . the Wyoming Attorney General’s office has recently been swamped with inquiries about legal steps required to avoid life-saving medical care. The patients involved prefer death in 2010 to leaving their heirs open to sky- high estate taxes following death in 2011 or later. At present and until midnight of December 31, 2010 the estates of dying Americans will not be subject to taxes. After the Bush estate taxes expire one second past “Auld Lang Syne,” the so-called “Death Tax exemption” will go back to $1 million. The effect on small business and family business and family farms is sure to be devastating. Isn’t this a wonderful set of affairs, to save your family’s farm or business, you basically have to do yourself in . . . thank you, thank you, Barack . . . now that’s “fundamental transformation.”
Here’s what you can look forward to as the Bush tax cuts enacted in 2001 and 2003 all expire (information from the great folks at MyDollarPlan.com) unless something is done in Congress very soon:
Tax Cuts Expiring in 2010
1. Income Tax Rates. The top tax rate rises from 35% to 39.6%. In addition, if nothing is done, it will mean higher taxes for every single American and a return of the marriage tax penalty. See the proposed 2011 tax rates for more information.
2. Capital Gains. The 0% long term capital gains rate will go away. Capital gains rates will go up to 10% for lower tax brackets and from 15% to 20% for higher tax brackets.
3. Dividends. Dividends will be taxed as ordinary income, with the new higher rates. Right now the dividend tax rates are 10% and 15%.
4. Child Tax Credit. The child tax credit will return to $500 from the current $1,000 per child. In addition, it may not be refundable for some taxpayers.
5. 529 Plans. 529 plan withdrawals will not be allowed tax free for computer or Internet access.
6. Business Taxes. In addition, various business taxes will change including the payroll tax credit and section 179 expense deduction.
7. Estate Taxes. Without any action, the estate tax (or "death tax" as some like to call it) exemption will go back to a $1 million exemption.
8. Other Tax Credits. The tuition credits will be limited, as will the earned income tax credit.
9. Mortgage Premiums. You will no longer be able to deduct mortgage insurance premiums after December 31, 2010.
Five of these items (#1, #4, #6, #7, and #9) will be especially crippling to the nation as the country strives to rebound from the recent financial debacle. If Barack Obama had any economic sense we would see an across-the-board extension of all nine of these tax cuts. But Rajjpuut’s NOT holding his breath . . . .
Ya’all live long, strong and ornery,