2011 Tax Increases: A Summary

M. B. Snow
The Snow Report Blog

2011 TAXES
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:

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 exemption s 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…

Second Wave: Obamacare

There are over twenty new or higher taxes in Obamacare.  Several will first
 go into effect on January 1, 2011.  They include:
 The “Medicine Cabinet Tax”  Thanks to Obamacare, 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)…

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 . . . the dupes, er, dopes, who backed this
 administration will be astonished!

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?  So what; 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 so it’s even

This is how the government is going to buy insurance for the 15% that don’t
 have insurance and it’s only part of the tax increases.

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

The complete article is at The Snow Report Blog.

H/T NewsRealBlog

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