2011 Taxes- This seems to be true - Do not be eating while reading!

Pseudomind

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Jul 1, 2008
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Jacksonville, FL
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I would suggest one read it all, as it will affect even the lowest tax payers. :smt013 :smt013 :smt013

Damn the puke icon where is the outhouse icon

Obama Goodwrench is getting his wish .... spread the wealth
#yiv1438694251 p {margin:0;}
Read this in a quiet moment to be apprised of what you might do in 2010 before these kick in. Many are talked about in the press these days, but a few are more esoteric.

2011 Taxes

It is amazing how many people will be affected by the tax laws that take effect
on January 1, 2011

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:

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

Several will first go
into effect on January 1, 2011. They include:


The "Medicine Cabinet Tax" 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 will affect 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 willnot 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.

PDF Version Read more:

http://www.atr.org/six-months-untilbr-largest-tax-hikes-a5171##ixzz0sY8waPq1

Now your insurance is INCOME on your W2's......

One of the surprises we'll find come next year, is what follows - - a little
"surprise" that 99% of us had no idea was included in the "new
and improved" healthcare legislation .


Starting in 2011, (next year folks), your W-2 tax form sent by your employer
will be increased to show the value of whatever health insurance
you are given by the company. It does not matter if that's a private concern or
governmental body of some sort. If you're retired
your gross will go up by the amount of insurance you get.



You will be required to pay taxes on a large sum of money that you have never
seen. Take your tax form you just finished and see what $15,000
or $20,000 additional gross does to your tax debt. That's what you'll pay next
year. For many, it also puts you into a new higher bracket.


This is how the government is going to buy insurance for the15% that don't have
insurance and it's only part of the tax increases.

Not believing this??? Here is a research of the summaries.....


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."

Joan Pryde is the senior tax editor for the Kiplinger letters. Go to

Kiplingers and read about 13 tax changes that could affect you. Number 3 is
what is above.


People have the right to know the truth because an election is coming in
November.

 
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This doesn't even include the state and local tax hikes.
 
I believe the imputed value of your health insurance is reported in the information box of your w2 and is not taxable in 2011. I think this is required so the IRS can collect the federal excise tax when your coverage becomes classified as a Cadillac Plan due to inflation. This will likely happen to most decent plans in just a few years (about 6 in our case). At least this is what our accountants are saying. Many of the rules have yet to be drafted and the feds are behind schedule in getting them out. All in all.......not good.
 
Change you can believe in.........The people who voted for the Obama are now going to get the bill along with the rest of us .......P.S S&P now trading at 1047....Great recovery in progress for over a trillion in debt spent ...
 
Guys this has been on the books ever since Bush got the cuts passed in the first place. It was no secret that they would expire at the end of 2010. If we didn't have a Bolshevic President and Congress, they might have extended them for another couple of years until the economy recovers. The rub is even if the Republicans get control back of both houses in November and pass a bill to extend them, Barack Hussein would just veto it.
 
Thanks for the unbelievable first year. Can't wait to see what comes next. I hope he take all the vacation he can. He does less damage when he's out.
 
Can you please tell me where you got this info from?.....


Most of the original post was written by Ryan Ellis on Wednesday, July 7, 2010 but its been copied / pasted and changed many times since its original post.

Read more: http://www.atr.org/six-months-untilbr-largest-tax-hikes-a5171##ixzz0xXVKK4nH


.....Has this been pasted by congress?

Just the opposite. Most if it does not need to be passed.

Most of the above is reflective of expiring temporary tax cuts. “Temporary” is a relative term since the tax bracket that was 28% became 25% years ago, ditto with much of the above.

So without action the above simply becomes law of the land. No vote by congress needed.

The taxation of health care benefits is different and is not going to go into effect without action by congress.

FWIW, under current tax code, for most people the income tax deferral benefit of programs like 401k’s for the portion of your unmatched contributions are hard to justify. If the above goes into effect the unmatched portion of your 401k contributions make better sense, not great sense, better sense then they do today.

After taking advantage of any employer matching of funds then the ROTH IRA if you qualify, today you may be better off just paying the income tax on any additional available funds then investing as you see fit.
 
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I was bummin' about my personal taxes going up, until it was pointed out to me that the increase would simply mean I'd pay less AMT. Net=no change. If you're in that situation, that may help you feel a little better. Or not.
 
Well you haven't even touched on the health insurance issues. For those of us who have employers that help cover our insurance( hence health benefits). Or retireees that have health insurance still supplemented thru employers. Self insured business owners etc. Those are called "cadillac insurance". You get to pay an extra 15% to help fund the new healthcare plan. You also get to pay an additional 50% percent of what your medical tax benefit would be to help fund it as well. Oh and your employer will have an increase too, based upon number of employees on the plan, and all of this may just cause the employers to not have health care plans for employees. Oh and remember if you had INS through your work you would be fine and didn't need the new healthcare plan. But if you didn't you needed to get it before the plan went into effect or you didn't qualify....? Oopsy, your employer just dropped ur coverage. Now what? Great thanks a lot
Obama Bin Ladin!!!!
 
I was bummin' about my personal taxes going up, until it was pointed out to me that the increase would simply mean I'd pay less AMT. Net=no change. If you're in that situation, that may help you feel a little better. Or not.

The capital gains tax will rise from 15 percent this year to 20 percent in 2011. This may get you.
 
Has anyone had a capital gain in the last 5 years?

I should have just invested more in my depreciating Sea Ray...
 
[YOUTUBE]http://www.youtube.com/watch?v=QUWnl7UADYU&feature=related[/YOUTUBE]
 
Has anyone had a capital gain in the last 5 years?

I should have just invested more in my depreciating Sea Ray...

I think I will barricade my property and fight off any SOB tax collector or anyone else that comes up my hill to F$%@ with me! Old time justice! The only time I leave is to go to my boat...
 
I think I will barricade my property and fight off any SOB tax collector or anyone else that comes up my hill to F$%@ with me! Old time justice! The only time I leave is to go to my boat...

I have a feeling this will become very common in the future if things keep going this way.

My wife is from Montana and a lot of people out west distrust big corrupt goverment and big business. In MT in part based on incidents like the Butte Mine fire and the sedition laws that were passed nationwide as a result.

This is a book written by my wifes family member about it.
http://www.amazon.com/Fire-Brimstone-North-Mining-Disaster/dp/140130155X

A lot hate taxes with a passion. I'm not saying wifes family are "freeman" holed up in the mountains, but the everyday people in the west tend to disapprove of big wasteful governement in a much more vocal and open manner.

Almost since its creation, our government has been run by politicians that have made a career out of helping themselves and their friends at everyone elses expense. This has led to a true class distinction, where the ruling class makes laws to suit their needs and the rest of us have to suffer the results. Think about it. There are only two party choices, neither of which is even close to a good choice. These two parties have a stranglehold on the process of selecting goverment due to a lot of money from a few very wealthy sources (personal and business). It has become a business where you can buy power. Once you have the power, you can keep it almost indefinately and use it to make yourself and your family richer. You can then pass your power on to other family members, just think about the big political families like the Kennedy's. Why didn't we just come right out and call them Lords and Barrons?

Until we set a one term limit and have meaningful campaign finance law changes limiting the amount that can be spent on campaigns and where it can come from, there will never be any change that we can truly believe in. And if you think either party will ever allow this to happen, you are living in a fantasy world.

Truly a sad state of affairs for this county! :smt009
 
Just the opposite. Most if it does not need to be passed.
The taxation of health care benefits is different and is not going to go into effect without action by congress.

Actually this was passed as a part of Obamacare. If you are not in a union and have a Cadillac plan you are subject to the federal excise tax. Cadillac plans are defined as plans worth around $18,000/ enrollee per year. If your present plan has a value of $9700 per year which is typical of medium sized cities in the midwest, you will hit the tax threshold around 2018 if healthcare inflation goes up a little more than 8% a year. That level of increase is not unexpected given the mandated new health benefits for company sponsored health plans and which include: elimination of yearly and life time caps, children covered to age 26 and more people enrolled in state Medicaid programs which is mandated in the law but unfunded. If you are a business and try to drop your plan for employees you must pay fines to the IRS. Beginning 2011 on January 1, businesses must offer long term care insurance under company sponsored health plans. If your employees do not opt out of the coverage, they must pay the tax on that coverage which does not kick in for several years. The tax (estimated at $250-350 per month) must be paid until open enrollment of the next plan year and the amount paid in is nonrefundable.
 
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