Posted by Tina
An excellent article in the Wall Street Journal today, “An Economic Time Bomb,” by Pete Du Pont, includes a laundry list of tax changes that will greatly impact individuals as well as our economy in 2010 and 2011. As the progressives in Congress greedily rub their hands together the rest of us are left holding our breath. We’ve already seen how losing investment cash in the private sector translates to hard times keeping a budget for many individuals and job and business losses for others. These higher tax rates and changes will only compound our problems. I’ve excerpted the data:
Expiration of the Bush tax cuts will include the following:
Top personal income tax rate will rise to 39.6% from 35%
Dividend tax rate will rise to 39.6% from 15%
Capital gains tax rate will rise to 20% from 15%
(If the House health care bill had passed, all three of these rates would have risen to 45%)
If you don’t think you’re among those with a target on your back think again:
Loss of tax deductions (2010):
State and local sales taxes
College tuition and fees
50% write-off for small businesses for capital purchases–equipment, machinery or building a new plant
Other likely increases:
The estate tax, which fell to zero this year under the Bush tax cuts, will return in 2011 (or sooner)
Private equity and hedge-fund managers – capital gains rate of 15% raised to 39.6%
10-year, $90 billion tax on banks aimed at “rolling back bonuses for top earners.”
Add to all of these taxing burdens the fact that America is not engaging in free trade as it once did and is engaging in outrageous spending by the current congress/administration and you have a pretty sorry looking future for Americans.
We need change that will bring us out of this nightmare!