Thread: 90 Days To Go Until The Largest Tax Hikes in American History

Was written back in July.


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:

(N.B. This version of the document contains even more tax hikes than the original version did)

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:

continued

....all I can come up with.

Enjoying your hope and change?

Just for reference, the rate in 2000 was also 39.6%, while in 1986 it topped out at 50%, and in 1981 it was a whopping 70%. Rates from 1913 on are at:
http://www.taxfoundation.org/publications/show/151.html

come on now....it's not a tax hike! it's an expiration of existing tax CREDITS!!!

Originally Posted by GaJeep94YJ

come on now....it's not a tax hike! it's an expiration of existing tax CREDITS!!!

Exactly. It all depends on who is putting out the "spin." If you look at the long-term top rates, you could say that even after this cut expires, the maximum rates have dropped almost 50% since 1981.

Poliltically, it seems a bit strange to consider that this tax cut, just like the "assault weapons ban" were both passed with set expiration dates. The left complained about the expiration of the weapons "ban" and some on the right complain about the temporary tax cut. I maintain that generally it is "good" to pass legislation with an expiration date. Then decide at that time if you want to renew. Might even work for a marriage license??????