Here is the tax picture fpr 2011 --- Its an ugly picture and it is only the beginning of a new round of taxation without representation. Thanks Dems.

July 1, 2010
Sources: Ryan Ellis, ATR Tax Policy Director, Rush Limbaugh, J Smithson (Editor of this publication)

In 2001 and 2003, the GOP Congress enacted several tax cuts for investors, small business

owners, and families. Keep in mind that the GOP tried and tried to get these cuts made permenant, but that was refused by the Dems. Understand that the Dems opposed continued tax relief to the average American citizen making incomes well under the $250,000 divide Obama talked about hundreds of times during the campaign.

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 standard deduction for couples as a percentage of the standard deduction for singles
will decrease from 200% to 167%

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. No death tax this year. Next year, the tax can be as high as 55%.

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.

There are over twenty new or higher taxes in Obamacare.

The “Medicine Cabinet Tax” Under 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).

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).

The HSA Withdrawal Tax Hike. This provision of Obamacare increases the additional tax

on non-medical early withdrawals from an HSA from 10 to 20 percent,

The Alternative Minimum Tax and Employer Tax Hikes

When Americans prepare to file their tax returns in January of 2011, 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 equipment deductions will be cut or amended 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 expense half of their purchases of equipment. In January of 2011, all of it will have to be

“depreciated.” -- which means, of course, that small business will have to pay more taxes because

of less deduction. Total

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. The Section 179 business expensing cap will decrease from $250,000 to $125,000 (plus inflation after 2008), and the starting point for the phase-out of this deduction will decrease from $800,000 to $500,000.

So much for making college more accessible.

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.

Other tax breaks for the common man going down the Obama drain include these:

• The dependent care tax credit will decrease from $3,000 to $2,400.
• The American Opportunity Tax Credit will expire.
• No longer will individuals be able to receive a credit to purchase energy efficient home
  appliances.
• The tax credit to hire unemployed veterans and disconnected youth will expire.
• The Work Opportunity Tax Credit, which allows employers to credit up to 40% of the
  first-year wages of a new employee, will expire.
• The $400 “Making Work Pay” Tax Credit will expir

Not law but being considered:

Mortgage interest deduction will be disallowed -- this, alone, will cost a family paying $7000 a year in interest payment $2000 per year.