Fewer than 100 days until Taxmegeddon
For those who just can’t wait until the rich are faced with higher taxes, the wait is nearly over. Just under 100 days and the largest tax increases in the history of the United States will go into effect.
There’s a catch. There always is a catch.
The rich will have their taxes increased from 35 percent to 39.6 percent. That’s the gotcha tax those in the administration have been relishing. In fact it’s the crux of the campaign being waged by the White House against Mitt Romney.
However, not only will good ol’ Mitt be snake bitten by the tax hike, so will other taxpayers. Those now faced with a 10 percent federal income tax will get to pay 15 percent; 25 percent taxpayers will get to give the government 28 percent; and those now paying 28 percent of their income will fork over 31 percent; and those lucky enough to hand over one third of their income will now get to give the federal government 36 percent.
Now that’s really socking it to the rich!
Wait a minute. That’s going to hit all income earners. Right?
Well, yes. However, those folks who are married and have families to raise, are even more fortunate under this plan. The “marriage penalty” will return from the first dollar of taxable income. Those with children, well your child tax credit will be chopped in half — from $1,000 per child to $500.
OK, I know many of you want to pay more to the federal government, so they can offer more services. Here you go: The middle class death tax returns on Jan. 1, 2013.
Not enough? Well, there’s going to be a higher tax for those persons who have anything left after they shell out to the feds, capital gains taxes will rise to 23.8 percent from 15 percent. Top dividends will be hit with a 43.4 percent tax. What has it been? A measly 15 percent.
Oh, and if you happen to be the parent or guardian of a special needs child, consider yourself capped. Yup, your unlimited FSAs are now limited to $2,500. If part of that means high medical expenses, you’ve been allowed to deduct expenses that exceed 7.5 percent of your adjusted gross income. This new approach to tax the rich will mean you’ll have a threshold of 10 percent. Lots of luck.
Just so everyone is able to give freely to the needs of our federal government with a happy face, taxes will be raised on all types of businesses. (They didn’t build it, so they should be happy to pay more taxes.)
Just in case you thought you could still give charitable contributions from your IRA — forget about it!
Isn’t it great! We all get to pay more taxes!