So Much for Campaign Promises of “No Tax Increased for Middle Class”
Unless the Democrat dominated Congress acts before December 31, 2010, Americans of all income levels will face massive tax increases despite the appealing promises of “no tax increases for those making less than $200,000,” made by Candidate Barack Obama before becoming President of the United States.
President Obama has said he will let the Bush tax cuts enacted by Congress to stimulate the economy following the 9/11 attacks, expire at the end of 2010. Unless Congress intervenes, that decision will result in the largest increases in taxes in American history, in addition to other taxes and fees imposed by the Obama Administration, some of which will take effect in the coming year.
Some of the tax increases as reported by Investor’s Business Daily include the following:
The Federal Estate (Death) Tax will increase from zero to 55 percent on estates valued at $1 million or more. This will virtually eliminate the inheritance of many small businesses, farms or homesteads by family members. They will have to be sold to pay the federal imposed death taxes. It will not impact the well connected “rich” like the Kennedys, Clintons, Pelosis and Obamas; tax “loopholes” and non-profit “foundations” and “trusts” protect them.
Income taxes increase in each of the tax brackets. The lowest bracket increases most by 50 percent. It increases from 10 percent to 15 percent. The 25 percent bracket increases to 28 percent, 28 percent increases to 31 percent, 33 percent increase to 36 percent and the current 35 percent bracket increases to 39.6 percent.
The marriage penalty is re-imposed, creating a tax incentive for couples to separate or to remain single.
The capital gains tax will increase from 15 to 20 percent.
The tax on dividends will increase on January 1 by 164 percent from 15 percent to 39.6 percent. This is for all taxpayers. There will be an additional 3.8 percent tax on dividends and capital gains for individuals making 200,000 or more when the healthcare reform kicks in beginning in 2013.
There is also a special tax increase for parents with children beginning in January unless Democrats in congress act quickly. The current $1,000 per child tax credit will be cut in half to $500.
By letting the Bush tax cuts expire on December 31, 2010, Democrats will cost taxpayers $115 billion next year alone.
Obamacare will bring on the next wave of tax increases. It will be overwhelming. For example, this year 4 million families are affected by the alternative minimum tax. That number will increase to 28.5 million families impacted by this tax grab next year.