Impending Tax Increases<\/a>
\nCongressman John C. Fleming, MD<\/p>\nFriends, I wanted you to see first-hand how your taxes will automatically increase over the next few years if Congress does nothing.<\/p>\n
These tax increases are WRONG for America. <\/p>\n
2010:
\nThe exemption for the Alternative Minimum Tax (AMT) will decrease from $46,700 to $33,750 for single filers and from $70,950 to $45,000 for married couples filing jointly. <\/p>\n
Taxpayers will not be allowed to deduct their state and local general sales taxes from their federal income tax.<\/p>\n
Businesses will not be able to claim a tax credit for research, experimentation, and development activities. <\/p>\n
Taxpayers will not be able to claim a deduction for qualified tuition and related expenses. <\/p>\n
School teachers will no longer be able to write off books, supplies and other equipment that they purchase with their own money for the classroom.<\/p>\n
Five year depreciation of farm business machinery and equipment will expire.<\/p>\n
Business property on Indian reservations will no longer be depreciated at an accelerated rate.<\/p>\n
Donations of books to public schools (K-12) will no longer be eligible for an enhanced charitable deduction.<\/p>\n
Corporate contributions of computer equipment for educational purposes will no longer be eligible for an enhanced charitable deduction.<\/p>\n
The minimum required distribution rules for IRAs and defined contribution plans will no longer be waived.<\/p>\n
Tax-free distributions from individual retirement plans for charitable purposes will no longer be allowed.<\/p>\n
The tax credit for first-time DC homebuyers will expire. <\/p>\n
Tax incentives for investment in DC, including the DC Zone employment tax credit, will expire.<\/p>\n
\u201cRenewal Community\u201d tax incentives will expire.<\/p>\n
The net operating loss (NOL) carryback period for small businesses will decrease from 5 years to 2 years.<\/p>\n
The first-time homebuyer credit will expire at the end of April 2010.<\/p>\n
2011
\n The marginal income tax rates will increase as follows:<\/p>\n
–35% bracket will increase to 39.6%
\n –33% bracket will increase to 36%
\n –28% bracket will increase to 31%
\n –25% bracket will increase to 28%
\n –10% and 15% brackets will condense to 15%<\/p>\n
Dividends will no longer be taxed at the capital gains rate for individuals, thereby increasing the double taxation of dividends by as much as 164%. <\/p>\n
The personal capital gains tax will increase to 20% and 10% (from 15% and 5%).<\/p>\n
The child tax credit will decrease from $1,000 to $500.<\/p>\n
The standard deduction for couples as a percentage of the standard deduction for singles will decrease from 200% to 167%–restoring the marriage penalty.<\/p>\n
The top end of the 15% marginal income tax bracket for couples as a percentage of the top end for singles will decrease from 200% to 167%–restoring the marriage penalty.<\/p>\n
The \u201cdeath\u201d tax using the \u201cstepped up\u201d basis will return with a 55% maximum rate (including surtax) and a $1 million exemption, after years of decreasing \u201cdeath\u201d tax rates, increasing exemptions, one year using the \u201ccarryover\u201d basis to calculate the tax due, and one year of total elimination (2010).<\/p>\n
The Section 179 business expensing cap will decrease from $250,000 to $125,000 (plus inflation after 2008), and the starting point for the phase-out of this deduction will decrease from $800,000 to $500,000.<\/p>\n
The dependent care tax credit will decrease from $3,000 to $2,400.<\/p>\n
The American Opportunity Tax Credit will expire.<\/p>\n
No longer will individuals be able to receive a credit to purchase energy efficient home appliances.<\/p>\n
The tax credit to hire unemployed veterans and disconnected youth will expire.<\/p>\n
The Work Opportunity Tax Credit, which allows employers to credit up to 40% of the first-year wages of a new employee, will expire.<\/p>\n
The $400 \u201cMaking Work Pay\u201d Tax Credit will expire.<\/p>\n
2012
\nThe adoption tax credit will decrease from $13,170 to $5,000.<\/p>\n
The credit for electric drive motorcycles, three-wheeled vehicles, and low-speed vehicles will expire.<\/p>\n
The conversion credit for plug-in electric vehicles will expire.<\/p>\n
2013
\nThe tax credit for cellulosic biofuel producers will expire.<\/p>\n
The election to claim the energy credit in lieu of the electricity production credit for wind facilities will expire.<\/p>\n
The special depreciation allowance for cellulosic biofuel plant property will expire.<\/p>\n
The tax credit for the production of Indian coal will expire.<\/p>\n","protected":false},"excerpt":{"rendered":"
Tell Obama no thanks! Impending Tax Increases Congressman John C. Fleming, MD Friends, I wanted you to see first-hand how your taxes will automatically increase over the next few years if Congress does nothing. These tax increases are WRONG for America. 2010: The exemption for the Alternative Minimum Tax (AMT) will decrease from $46,700 to […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-3161","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"http:\/\/www.nhteapartycoalition.org\/tea\/wp-json\/wp\/v2\/posts\/3161","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.nhteapartycoalition.org\/tea\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.nhteapartycoalition.org\/tea\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.nhteapartycoalition.org\/tea\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.nhteapartycoalition.org\/tea\/wp-json\/wp\/v2\/comments?post=3161"}],"version-history":[{"count":2,"href":"http:\/\/www.nhteapartycoalition.org\/tea\/wp-json\/wp\/v2\/posts\/3161\/revisions"}],"predecessor-version":[{"id":3163,"href":"http:\/\/www.nhteapartycoalition.org\/tea\/wp-json\/wp\/v2\/posts\/3161\/revisions\/3163"}],"wp:attachment":[{"href":"http:\/\/www.nhteapartycoalition.org\/tea\/wp-json\/wp\/v2\/media?parent=3161"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.nhteapartycoalition.org\/tea\/wp-json\/wp\/v2\/categories?post=3161"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.nhteapartycoalition.org\/tea\/wp-json\/wp\/v2\/tags?post=3161"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}