Wednesday, October 27, 2010

Fire Congress!

We've heard a lot about extending the Bush tax cuts--which our cowardly Congress chose to ignore.  They all went home in order to campaign for their re-election.  As Obama claims to watch out for the "middle-class" he knew full well that extension of the Bush tax cuts would put money in the pockets of all
Americans. He was firmly against extending the cuts.  What does this mean to you? 

In 2001 & 2003 Congress enacted several tax cuts to investors, small business owners, and families.  These will all expire on January 1, 2011--some call it The Day of Reckoning.  Personal income tax will rise.  The top income tax rate will rise from 35% to 39.6% (this is the rate at which 2/3 of American small business profits are taxed.)  Let that number sink in!  People will pay up to forty percent tax rate.  What would that do to your income?  The lowest rate is from 10% to 15%.  All rates in between these to rates will also rise.  (So much for saving the middle class!)
  • According to the Tax Policy Center, the number of taxpaying families will rise from 4 million to 28 million--that includes you, my friend.  And at higher rates.
  • Teachers will no longer be able to deduct classroom expenses.
  •  Tax benefits for education and teaching will be reduced
  • Deductions for tuition and fees no longer available
  • Student loan interest deduction disallowed
  • Charitable contributions from IRA's  not allowed
  • A cap of 28% on charitable deductions/itemized deductions
  • Your insurance will be INCOME on your W2's (compliments of Obama-care).  Your employer must show the value of whatever health insurance you are given--it is now income.  Retired?  Your income will go up by the amount of insurance you got.  For many--a higher tax bracket.  This is how the govt. is going to buy insurance for the 15% who don't have insurance.  Don't believe me? 
  • On page 25 of 29: TITLE IX REVENUE PROVISIONS- SUBTITLE A: REVENUE OFFSET PROVISIONS-(sec. 9001,as modified by sec. 10901) Sec.9002  "requires employers to include in the W-2 form of each employee the aggregate cost of applicable employer sponsored group health coverage that is excludable from the employees gross income."
  •  Marriage penalty (narrower tax brackets for married couples).
  •  Child tax credit cut from $1,000 to $500
  •  Dependent care and adoption tax credits cut
  •   Return of the death tax--better die before the end of 2010 or your family will take a hugh tax hit.
  •  Capital gains tax up from 15% to 20%
  •   Medicine Cabinet Tax:  You'll no longer be able to use flex spending or health reimbursement pre-tax for non-prescription/over the counter meds.
  •  A new cap on flexible spending of $2500.00--hardship on families with special needs kids.

Barney Frank--One of the biggest BAFFOONS in Washington! He talks like it's HIS MONEY to take! That's the mentality of most of our elected officials.

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