Six Month To the Largest Tax Hike in History
The Obama tax hikes, the largest tax hikes in America history will take effect January 1, 2011. Hurting families and small businesses next year.
The first hit is the expiration of the so called Bush Tax Relief Acts. The 2001 and 2003 enacted tax cuts for investors, small business owners, and families will expire.
Then, personal income tax rates will rise. On top of this, itemized deductions and personal exemptions will phase out, having the same effect as higher marginal tax rates.
New rates will be:
- 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%
The marriage penalty returns on the first dollar of income. The child tax credit will be cut in half. The standard deduction wont be doubled for married couplesas it is now. The dependent care and adoption tax credits will be cut.
Then the return of the Death Tax. Now there is no death tax. Die on or after January 1 2011 and there is a 55 % top tax rate on estates over $1 million.
Higher tax rates on savers and investors. The capital gains tax will rise from the current 15 % to 20 %. Dividends tax will rise from 15 % to a whopping 39.6 % in 2011. Then in 2013 the rates will rise another 3.8 %.
All this will make us bring home less of our paycheck, owe more at tax time and create a negative effect on saving and investing. Hold on to your cash, your going to need it.
