View Full Version : Hammered with new taxes
http://online.wsj.com/article/SB10001424052748704130904574644143283896148.html
Stephen Moore of the WSJ has been consistently sounding the alarm that even the middle class is now getting hammered with new taxes, starting in 2010 and continuing on into 2011. He said this week on Fox News that the average family would see a $1000 to $3000 direct, visible increase in their tax bill this year.
Some of the biggest factors causing the tax increases:
* The Bush tax cuts are expiring
* The Alternative Minimum Tax juggernaut is continuing to affect more and more Americans as Congress does nothing about it.
* New payroll taxes that will be used to support the health care bill.
* Increases in the death tax.
* Increases in the capital gains tax.
* Federal tax deduction for state and local taxes goes away.
* And of course, various state-level taxes--sales, real estate, income--are going up as cash-strapped states refuse to cut spending.
It's hard to believe that even socialists cannot grasp the concept that RAISING taxes in the middle of a recession makes things worse, but apparently, they are going to continue doing just that. And the absolutely tepid, lame response of the so-called Republicans in Congress has been disgusting.
I have never liked the solution of "vote out every incumbent," as I always thought it sounded like a rather mindless and reactionary solution. But now, I am starting to wonder if anything else will work. They are just not listening.
ForTehNguyen
06-09-10, 09:47
more like I HOPE you have CHANGE left
All I have left is hope, I'm all out of change.
Unless there is a candidate with a glowing record of following the constitution I am voting against every representative up for re-election. Rep., Dem, doesn't mean a hill of beans anymore to me, It seems all of them are too far right or left for me. Why does it have to always be picking the lessor of 2 evils?
Well, I HOPE all of the people who voted for Obama will CHANGE their minds in 2012 or else, as Obama said himself, "you can expect more of the same".
Federal tax deduction for state and local taxes goes away
Do you have a reference for this statement?
Do you have a reference for this statement?
Yes, it's mentioned as one of the coming tax hikes, in the linked WSJ article in the original post:
"The tax deduction for state and local taxes also disappears, so shoppers of all incomes will cough up $1.85 billion more."
"...if your family earns less than $250,000 a year, you will not see your taxes increased a single dime. I repeat: not one single dime."
-President Barack Obama, 2/24/2009
rubberneck
06-09-10, 18:35
"...if your family earns less than $250,000 a year, you will not see your taxes increased a single dime. I repeat: not one single dime."
-President Barack Obama, 2/24/2009
I guess that goes right up there with "read my lips...." but in defense of GHWB the situation had changed between that statement and his raising taxes. I am pretty sure the current President knew all along his policies would lead to much higher taxes on the middle class and lied about it to get elected. How so many people fell for his unadulterated bullpuckey will go down as one of the great mysteries in American political history.
A local borough here raised property taxes 10 percent to pay for a new high school, I think it's 16 percent total now :eek:
In WA state, they have recently increased taxes of the nickle-and-dime variety. Problem is, they tax in all these "little" ways and hope you don't notice, but they add up all across the board in addition to the "big" taxes that are more visible. Some examples of the increases:
* $1 a pack on cigarettes. The WA cig tax is now over $3 a pack!!!
* Increased beer tax. The increase amounts to about $15 per 31-gallon barrel, or about $1.12 per case of 24. If you are a brewery, this $15 increase almost triples your effective per-barrel tax, from $8 to over $23.
* New taxes on candy, bottled water, and carbonated beverages. These items are no longer treated as "food" items, so they are now subject to the sales tax of around 9%. The absurdity of this tax is shown in that there are now government documents (http://dor.wa.gov/Docs/Pubs/SpecialNotices/2010/sn_10_CandyGum.pdf) in WA state defining "What is candy" for the purposes of the tax.
ForTehNguyen
06-10-10, 09:05
"...if your family earns less than $250,000 a year, you will not see your taxes increased a single dime. I repeat: not one single dime."
-President Barack Obama, 2/24/2009
he wont increase taxes he will just increase "fees"
arizonaranchman
07-05-10, 19:53
The communists in charge are intentionally trying to drive the economy into the ground and collapse the dollar/economy. They know exactly what they're doing, hang on for the ride. Double-digit inflation is just around the corner and double-digit interest rates along with that.
CarlosDJackal
07-05-10, 22:17
One Big Assed Mistake America!!! :mad:
PrivateCitizen
07-05-10, 22:41
"...if your family earns less than $250,000 a year, you will not see your taxes increased a single dime. I repeat: not one single dime."
-President Barack Obama, 2/24/2009
:D
Yeah …
We were supposed to get to keep our insurance if we liked it too …
2 weeks ago I got a letter from my provider of the last decade, that I am 110% satisfied with, informing me that my major medical (meaning high ticket actual disaster care coverage policy and no sniffly noses coverage) no longer matched federally required guidelines and was cancelled.
So now after 10 years of coverage the heath care bill took away my coverage.
Despise that man …
:D
Yeah …
We were supposed to get to keep our insurance if we liked it too …
2 weeks ago I got a letter from my provider of the last decade, that I am 110% satisfied with, informing me that my major medical (meaning high ticket actual disaster care coverage policy and no sniffly noses coverage) no longer matched federally required guidelines and was cancelled.
So now after 10 years of coverage the heath care bill took away my coverage.
Despise that man …
And this is just the sort of policy that they should want people to have. This will actually reduce healthcare costs if everyone has this sort of policy...
Dumb ass Obama
variablebinary
07-06-10, 00:39
Obama is still getting reelected, hate to break it to ya.
Welcome to Neo-America. You better pray daily that Kennedy and Scalia stay healthy. They are both in their early 70's
CENTCOM_Survivor
07-06-10, 01:51
I just got a letter at work stating they are adding our heath benefits to our earned income for 2011. So for some it will shoot you into the higher tax bracket.
Thanks for the change!!!
I just got a letter at work stating they are adding our heath benefits to our earned income for 2011. So for some it will shoot you into the higher tax bracket.
Thanks for the change!!!
Go pay a visit to your HR or Benefits department and ask them what that means and why they think they need to do that. I am not an expert on this by any means but I do not believe that employers are losing their tax break for healthcare expenditures (unless may this has to do with so-called Cadillac plans and that is what you have?).
Chad
Obama is still getting reelected, hate to break it to ya.
Welcome to Neo-America. You better pray daily that Kennedy and Scalia stay healthy. They are both in their early 70's
I really wish you were wrong, but I really don't think you are.
This kind of thing makes me so angry. As if I'm not angry enough at illogical liberal thinking, but this sort of thing happening to an American that's doing the right thing for themself and family just makes me want to smack the card carrying liberal my wife works with just for being stupid. I hope things work out for you to get things back on track.
:D
Yeah …
We were supposed to get to keep our insurance if we liked it too …
2 weeks ago I got a letter from my provider of the last decade, that I am 110% satisfied with, informing me that my major medical (meaning high ticket actual disaster care coverage policy and no sniffly noses coverage) no longer matched federally required guidelines and was cancelled.
So now after 10 years of coverage the heath care bill took away my coverage.
Despise that man …
This is the sort of thing that needs to get out there.
Write a letter to the editor of your local paper with this story. Send it to a large national paper as well.
Send Glenn Beck an email about it. Call Rush.
The more actual verifiable cases that get exposed before the Nov elections the more pissed off people will be and vote.
:D
Yeah …
We were supposed to get to keep our insurance if we liked it too …
2 weeks ago I got a letter from my provider of the last decade, that I am 110% satisfied with, informing me that my major medical (meaning high ticket actual disaster care coverage policy and no sniffly noses coverage) no longer matched federally required guidelines and was cancelled.
So now after 10 years of coverage the heath care bill took away my coverage.
Despise that man …
GermanSynergy
07-06-10, 16:06
What happens when there's no more blood left to suck?
6 months to go until largest tax hike in country's history. http://www.atr.org/sixmonths.html?content=5171
In just six months, the largest tax hikes in the history of America will take effect. They will hit families and small businesses in three great waves on January 1, 2011:
First Wave: Expiration of 2001 and 2003 Tax Relief
In 2001 and 2003, the GOP Congress enacted several tax cuts for investors, small business owners, and families. 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 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. This year, there is no death tax. For those dying on or after January 1 2011, there is a 55 percent top death tax rate on estates over $1 million. A person leaving behind two homes and a retirement account could easily pass along a death tax bill to their loved ones.
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.
Second Wave: Obamacare
There are over twenty new or higher taxes in Obamacare. Several will first go into effect on January 1, 2011. They include:
The “Medicine Cabinet Tax” Thanks to 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).
The “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). There is one group of FSA owners for whom this new cap will be particularly cruel and onerous: parents of special needs children. There are thousands of families with special needs children in the United States, and many of them use FSAs to pay for special needs education. Tuition rates at one leading school that teaches special needs children in Washington, D.C. (National Child Research Center) can easily exceed $14,000 per year. Under tax rules, FSA dollars can be used to pay for this type of special needs education.
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, disadvantaging them relative to IRAs and other tax-advantaged accounts, which remain at 10 percent.
Third Wave: The Alternative Minimum Tax and Employer Tax Hikes
When Americans prepare to file their tax returns in January of 2011, they’ll be in for a nasty surprise—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 expensing will be slashed and 50% expensing will disappear. 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.”
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.
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.
Read more: http://www.atr.org/sixmonths.html?content=5171#ixzz0swHT77zN
Not to mention ****ing our Wounded Warriors. http://www.atr.org/wounded-warriors-face-new-tax-independence-a5175
As the nation prepares to celebrate Independence Day with parades and barbecues, America’s veterans face a new tax on prosthetic limbs and other vital medical devices.
The health care overhaul passed by Congress and signed into law by President Obama earlier this year contains a new tax on medical devices such as prosthetic limbs, pacemakers, and wheelchairs. This tax, which its proponents claim will raise $20 billion over the next ten years, contains no exemption for the nation’s 22 million veterans. In fact, Senate Democrats specifically refused to exempt veterans from the tax.
On March 24 2010, Senate Democrats rejected an amendment offered by Senator Orrin Hatch (R-Utah) to the healthcare bill. This amendment (SA 3644) would have prevented the medical device tax from hitting veterans covered by the Veterans Healthcare Program or TRICARE for Life. This amendment was rejected by a vote of 44-54. All but five Democrat senators voted in favor of retaining the tax for veterans.
The medical device tax was one of over twenty new or higher taxes in President Barack Obama’s healthcare overhaul. This permanent new tax is being collected now.
“On March 24, Senate Democrats had the opportunity to exempt our veterans from Obamacare’s new tax on medical devices such as prosthetic limbs. But 54 Democrats voted against the measure. They chose to side with the tax-and-spend crowd in Washington over our wounded warriors,”said Grover Norquist, president of Americans for Tax Reform. “This is one of the many reasons Harry Reid and the Democrats did not want Americans to read the 2,500 page health care bill before it was passed.”
In addition to those who served in Afghanistan and Iraq, the Department of Veterans Affairs reports the following number of veterans from America’s wars:
World War II: 2,079,000
Korean War: 2,507,000
Vietnam War: 7,569,000
Desert Shield/Storm: 2,254,000
The following senators voted for the tax:
Daniel Akaka (D-HI)
Max Baucus (D-MT)
Evan Bayh (D-IN)
Mark Begich (D-AK)
Michael Bennet (D-CO)
Jeff Bingaman (D-NM)
Barbara Boxer (D-CA)
Sherrod Brown (D-OH)
Roland Burris (D-IL)
Maria Cantwell (D-WA)
Ben Cardin (D-MD)
Tom Carper (D-DE)
Bob Casey (D-PA)
Kent Conrad (D-ND)
Chris Dodd (D-CT)
Byron Dorgan (D-ND)
Richard Durbin (D-IL)
Russ Feingold (D-WI)
Diane Feinstein (D-CA)
Al Franken (D-MN)
Kirsten Gillibrand (D-NY)
Tom Harkin (D-IA)
Daniel Inouye (D-HI)
Tim Johnson (D-SD)
Edward Kaufman (D-DE)
John Kerry (D-MA)
Amy Klobuchar (D-MN)
Herb Kohl (D-WI)
Mary Landrieu (D-LA)
Frank Lautenberg (D-NJ)
Pat Leahy (D-VT)
Carl Levin (D-MI)
Joe Lieberman (ID-CT)
Blanche Lincoln (D-AR)
Claire McCaskill (D-MO)
Bob Menendez (D-NJ)
Jeff Merkley (D-OR)
Barbara Mikulski (D-MD)
Patty Murray (D-WA)
Bill Nelson (D-FL)
Mark Pryor (D-AR)
Jack Reed (D-RI)
Harry Reid (D-NV)
Jay Rockefeller (D-WV)
Bernie Sanders (I-VT)
Chuck Schumer (D-NY)
Jeanne Shaheen (D-NH)
Arlen Specter (D-PA)
Debbie Stabenow (D-MI)
Mark Udall (D-CO)
Tom Udall (D-NM)
Mark Warner (D-VA)
Sheldon Whitehouse (D-RI)
Ron Wyden (D-OR)
Read more: http://www.atr.org/wounded-warriors-face-new-tax-independence-a5175#ixzz0swHlTDEK
GermanSynergy
07-06-10, 16:19
Unreal... All these new taxes, think we'll cut back on welfare and other entitlements? :o
PrivateCitizen
07-06-10, 16:31
The phrase, 'kick a baby' comes to mind.
Oh, wait, never-mind. They just did it to my kids.
Just plugged in the potential revised tax brackets from the expiration of the so-called Bush Tax Cuts (elimination of the 10% bracket is all that effects me, as I'm in the 15% married bracket) and and reduction of the Child Tax Credit into my tax spreadsheet...I'm looking at over a 60% increase in income tax next year.
That ignores any salary increase, any increases in medicare/SS withholding, and any increase in taxes on my health benefits (something I'm not certain of yet). Any or all of those obviously would increase that delta.
Can't wait for 2011...:rolleyes:
I'm looking at over a 60% increase in income tax next year.
I'm scared to see where we'll be at... What program were you using?
I'm scared to see where we'll be at... What program were you using?
No program...although I do my taxes with TurboTax. I have a spreadsheet set up to figure out my liability. I'm pretty straightforward: married, wife stays at home with our one child. For me it's just as follows:
Gross Income
-Pre-tax deductions (health care)
-Standard deduction (I don't itemize...me+my wife = $11,400)
-Personal exemptions (3 of us = $10950)
=AGI
With the elimination of the 10% bracket that puts me exclusively in the 15%, so for me my tax = AGI * 0.15. From that, I take off the child tax credit (dropping from $1k/child to $500/child) and "Making Work Pay" ($800/couple) to get tax liability. I've got this set up so I can figure out what I'll owe so I can try to get my withholding to match up as well as possible so I neither owe nor have to pay.
so aside from you guys, is anybody mad about any of this?
kaiservontexas
07-06-10, 20:07
I feel like they are trying to crush life.
so aside from you guys, is anybody mad about any of this?
Only the people who are paying attention.
But there's world cup soccer on tv and news about Lindsay lohan going to jail and all these big wars (iphone vs. droid, jacob vs. edward, etc), and...and....
We now have to pay a police protection "fee" of $174 per house per year, and businesses are charged by the number of employees. Some up to $30,000 year year. If you do not pay the "fee" then a lien is placed against your real estate and it is sold at auction.
And all this time I thought only the Mafia charged protection money.
What happens when there's no more blood left to suck?
Serfs and Lords. From the way the US Dept. of Justice is acting, we will be the serfs and the Black Panthers will be the Lords.
http://anticap.files.wordpress.com/2010/01/serf.jpg
http://3.bp.blogspot.com/_LD_Ah5tLKV8/SnENRRQel8I/AAAAAAAACm8/eRI6InWFBB0/s400/Black_Panther_Party_25.jpg
http://4.bp.blogspot.com/_gGaop-NUOOA/SiAJmkgriTI/AAAAAAAAEHM/PQKFy2_zipE/s320/Obama+Finger.jpg
We now have to pay a police protection "fee" of $174 per house per year, and businesses are charged by the number of employees. Some up to $30,000 year year. If you do not pay the "fee" then a lien is placed against your real estate and it is sold at auction.
And all this time I thought only the Mafia charged protection money.
Do you have a link to this info? Does it only pertain to Utah? I hadn't heard of this until now.
It is a new charge levied this year in Salt Lake County, Utah.
Links:
http://www.slvlesa.org/
http://www.deseretnews.com/article/700040615/County-enables-Unified-Police-Department-fee-decrease.html
We got hit with that Alternative Minimum Tax this year and it cost us over $5k. Can't wait till 2011. :rolleyes:
C4
Obama is still getting reelected, hate to break it to ya.
Welcome to Neo-America. You better pray daily that Kennedy and Scalia stay healthy. They are both in their early 70's
The math argues differently. They can probably keep the shell game going till after this November, but they can't keep it going till 2012. Especially not with the tax increases.
There will be a fiscal and economic cluster**** the likes of which this nation has never seen.
If enough people aren't mad now, enough people WILL be mad when the bread disappears from the shelves or the welfare cards stop working. Might not be the same people, but that doesn't really matter.
Obama is still getting reelected, hate to break it to ya.
Welcome to Neo-America. You better pray daily that Kennedy and Scalia stay healthy. They are both in their early 70's
I hate to agree with you but I am afraid I must!
These taxes are going to suck, an no one will say anything. We will bitch and moan on hear, foam at the mouth all over our keyboards, but no one will do anything. Sadly...
The worst part it, I now have to pay an extra 10% tax when I go tanning! lol
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