A brief outline of coming taxes

A list from Irene is republished, below.  A page of new taxes for you to celebrate.  Think, this government is not even two years old! Boy, wait until cap and tax when gas will go op a few bucks a gallon.


Upon first glance, I can suggest you become Muslim, to avoid Obamacare, to die this year to be considerate to your heirs, to book your profits this year then go overseas next year, move into a barter economy and get a divorce.  


Change you are stuck with. No point in saying I told you so, just go make amends. 


You will witness, first hand, how money acts like water and quickly moves around obstacles. If one creates a completely sealed dam, then money disappears under the ground. This is history and it is obvious to anyone who pays attention. Our Marxist friends in Washington do not understand money and live within the normalcy bias in the sense they assume our economy will be just like it was before extortion and skimming. 


The people who will be hurt in the future will be those not able or attentive enough to move quickly. They will be the middle class unable to break off from the system, but they will figure it out. The nation is about to change, but in ways no one can project, especially the thugs in D.C.


With each bankruptcy, a new nomad is created.

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Six Months to Go Until
The Largest Tax Hikes in History

From Ryan Ellis on Thursday, July 1, 2010 4:15 PM

     

BREAKING:  Wounded Warriors Face New Tax This Independence Day
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.
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Read more: http://www.atr.org/sixmonths.html?content=5171#ixzz0skW3snc3
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Of course, people like me will start new businesses designed to help others to avoid these taxes and/or move money and business out of the country. I am already looking into Canada and Switzerland. I think there is a real business there.  In fact, if you want to escape, let me know.


In the past, citizens were "voluntary" in the relation to the tax code as they volunteered information and paid taxes as a citizen/owner of the country. This will come to an end, so the government, the new owner of you, will begin the inevitable march into you bank. 

Special Sidebar: Watch the idiot Senator Reid on "voluntary" tax: here  He is truly stupid, but, apparently, ruthless. So, he leads the Senate. He bought off the top competitors for this election. 

Big Brother has been making big moves, of late, but much more it so come.  Get out of your 401 k asap. You may be able to wait until the election, but after that you may be surprised. 


Today, I watched a talking head on the Bloomberg web site, a funds guy, Barton Biggs, who worked thirty years with Morgan Stanley; he was confused and said Obama has done everything right and Congress and the Fed are blocking him from spending more money, that is why he has taken a hit on his portfolio and is selling. Congress is being cheap because the Tea Party movement is so strong. Everyone in the world is doing the wrong thing except Obama.


See how deep the idiots dwell?  See who really makes up "Wall Street?" The financial community is not republican or conservative.  It is not interested in the economic health of the nation. They take your money, take your pension, take your government's handout, then go skiing. Just look at who runs the Treasury and Fed. They forget to pay personal taxes.


What Biss is saying is the economy is his stock portfolio.  He wants stocks to go up.  That's it!  He can't figure out why stocks stopped going up when business profits are up. So, having a room-temperature IQ, Biggs figures the reason his stocks went down must be the Tea Party getting Congress to curb unemployment spending. Think about this. He is peeved that you have not funded his income, which he equates to the economy.


Here is Barton Biggs in 2002 considering gold may actually get to $500 per ounce.  Like I say, genius.  At least he notes in a bleak world gold could "beat" everything. You see, the purpose of investing is to "beat" others, not create or build.

It certainly is possible that gold can return to its long-term equilibrium inflation price of $500 an ounce, or even take a run at its all-time high of close to $1,000. What would cause such an explosion? A steep decline in the equities market, higher inflation, or competitive devaluation of the major currencies. In a bleak world, gold could beat almost everything else.