| 'Taxmageddon' to Hit Americans January 1 |
| Sep-21-2012 |
| Keywords: taxmageddon, tax increase, congress |
In a little over 100 days, the largest tax increases our country has ever seen will go into effect.
Beginning January first, Americans will be struggling with a massive series of tax hikes.
Unless Congress acts before December 31, the Bush tax cuts are scheduled to expire at the end of the year. Beginning January 1, 2013, personal income taxes will rise across all income levels.
The marriage penalty will return, and the child tax credit will be halved. In addition, the Middle Class Death Tax will go back into effect.
The capital gains tax will increase to 23.8%, up from its current level of 15%. The tax for top dividends will go from 15% in 2012 to 43.4% in 2013. These large increases for investors are partly due to an investment surtax included in Obamacare.
The next category of tax increases is caused by Obamacare. Beginning January 1, 2013, the Medicare payroll tax will rise to 3.8% of wages and profits for individuals earning over $200,000, and families earning over $250,000.
In addition, Obamacare will bring the Medical Device Tax and the "Special Needs Kids Tax."
Finally, the Alternative Minimum Tax returns, in addition to employer tax increases. 31 million American families will now have to pay the AMT, up from 4 million in 2012.
Businesses will no longer be allowed full business expensing, and will face a host of other tax increases. Also, Americans will not be allowed to give charitable donations from IRAs. |
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Posted by Lou Dobbs Staff at 3:00 PM Email to a friend |
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