New Taxes

Here goes your “Change” folks!  Forget about the “Hope”.

Starting on January 1, 2011, the largest tax increases in the history of the United States of America will take effect. They will hit families and small businesses in three huge waves.    

 In the beggining, the 2001 and 2003 Tax Relief will expire. In 2001 and 2003, the GOP Congress enacted several tax cuts for investors, small business owners, and families which will all expire on January 1, 2011.

Personal income tax rates will also rise.  The highest income tax rate will increase 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 increase 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. How is that going to make America better?
 There will also be greater 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. Families who rely on that money will be sorely disapointed, as well as the people who rely on the dependent care and adoption tax credits.   

The Death Tax will also return, which could be the death of some families.

I cant write anymore for now, but tell me how you feel about the new taxes.

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