Hope you got some candles, Barry White music and a nice red wine….then bend over

And you thought Carter left a mess?  You ain’t seen nothi’n yet so enjoy your favorite NFL game while pondering this…from Free North Carolina posted in full:

Oh yeah, if you think Mittens is going to fix this I got some prime Everglades farmland in Florida to sell you.

100 Days Until Taxmageddon

Sunday will mark the start of the 100-day countdown to “Taxmageddon” – the date 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, 2013:

First Wave: Expiration of 2001 and 2003 Tax Relief
In 2001 and 2003, the GOP Congress enacted several tax cuts for small business owners, families, and investors (later re-upped by President Obama and Democrat Congress in 2010).  The following tax hikes will occur on January 1, 2013:

Personal income tax rates will rise on January 1, 2013.  The top income tax rate will rise from 35 to 39.6 percent (this is also the rate at which the majority 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:
-The 10% bracket rises to a new and 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 coming on January 1, 2013.  The “marriage penalty” (narrower tax brackets for married couples) will return from the first dollar of taxable 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.

Middle Class Death Tax returns on January 1, 2013.  The death tax is currently 35% with an exemption of $5 million ($10 million for married couples).  For those dying on or after January 1 2013, there is a 55 percent top death tax rate on estates over $1 million.  A person leaving behind two homes and a retirement account could easily pass along a death tax bill to their loved ones.

Higher tax rates on savers and investors on January 1, 2013.  The capital gains tax will rise from 15 percent this year to 23.8 percent in 2013.  The top dividends tax will rise from 15 percent this year to 43.4 percent in 2013.  This is because of scheduled rate hikes plus Obamacare’s investment surtax.
Second Wave: Obamacare Tax Hikes

There are twenty new or higher taxes in Obamacare.  Some have already gone into effect (the tanning tax, the medicine cabinet tax, the HSA withdrawal tax, W-2 health insurance reporting, and the “economic substance doctrine”).  Several more will go into effect on January 1, 2013.  They include:
The Obamacare Medical Device Tax begins to be assessed on January 1, 2013.  Medical device manufacturers employ 409,000 people in 12,000 plants across the country. This law imposes a new 2.3% excise tax on gross sales – even if the company does not earn a profit in a given year. Exempts items retailing for <$100.

The Obamacare Medicare Payroll Tax Hike takes effect on January 1, 2013.  The Medicare payroll tax is currently 2.9 percent on all wages and self-employment profits.  Starting in 2013, wages and profits exceeding $200,000 ($250,000 in the case of married couples) will face a 3.8 percent rate.

The Obamacare “Special Needs Kids Tax” comes online on January 1, 2013.  Imposes a cap on FSAs of $2500 (now unlimited).  Indexed to inflation after 2013. There is one group of FSA owners for whom this new cap will be particularly cruel and onerous: parents of special needs children.  There are thousands of families with special needs children in the United States, and many of them use FSAs to pay for special needs education.  Tuition rates at one leading school that teaches special needs children in Washington, D.C. (National Child Research Center) can easily exceed $14,000 per year. Under tax rules, FSA dollars can be used to pay for this type of special needs education.  This Obamacare cap harms these families.

The Obamacare “Haircut” for Medical Itemized Deductions goes into force on January 1, 2013.  Currently, those facing high medical expenses are allowed a deduction for medical expenses to the extent that those expenses exceed 7.5 percent of adjusted gross income (AGI).  The new provision imposes a threshold of 10 percent of AGI. Waived for 65+ taxpayers in 2013-2016 only.

Third Wave: The Alternative Minimum Tax and Employer Tax Hikes
When Americans prepare to file their tax returns in January of 2013, they’ll be in for a nasty surprise—the AMT won’t be held harmless, and many tax relief provisions will have expired.  These tax increases will be in force for BOTH 2012 and 2013.  The major items include:

The AMT will ensnare over 31 million families, up from 4 million last year.  According to the left-leaning Tax Policy Center, Congress’ failure to index the AMT will lead to an explosion of AMT taxpaying families—rising from 4 million last year to 31 million.  These families will have to calculate their tax burdens twice, and pay taxes at the higher level.  The AMT was created in 1969 to ensnare a handful of taxpayers.

Full business expensing will disappear.  In 2011, businesses can expense half of their purchases of equipment.  Starting on 2013 tax returns, all of it will have to be “depreciated” (slowly deducted over many years).

Taxes will be raised on all types of businesses.  There are literally scores of tax hikes on business that will take place.  The biggest is the loss of the “research and experimentation tax credit,” but there are many, many others.  Combining high marginal tax rates with the loss of this tax relief will cost jobs.

Tax Benefits for Education and Teaching Reduced.  The deduction for tuition and fees will not be available.  Tax credits for education will be limited.  Teachers will no longer be able to deduct classroom expenses.  Coverdell Education Savings Accounts will be cut.  Employer-provided educational assistance is curtailed.  The student loan interest deduction will be disallowed for hundreds of thousands of families.

Charitable Contributions from IRAs no longer allowed.  Under current law, a retired person with an IRA can contribute up to $100,000 per year directly to a charity from their IRA.  This contribution also counts toward an annual “required minimum distribution.”  This ability will no longer be there.

20 comments

  1. 1
    Library Czar growls and barks:

    Welcome to the USSA, I was planning on continuing my own small business. Guess I will put that on hold for awhile.

  2. 2
    LC HJ Caveman82952 growls and barks:

    Wise decision, Library Czar. I have done the same here in Kalifornia. My investments widely diversified, much of which in commodities or precious metals. Our cretins in congress, desperate, will do anything to appear as if they are dealing with the problem they have created. It will not work, the economy will eventually crash, a mathematical certainty, even if they try to inflate us out of it.
    They can only safely cut to the poor, medicare and social security recepients, not daring to take on powerful business interests or organized labor. As we decline, the interest free loans we provide the government through tax withholding will diminish with the economy, along with the taxes we pay.
    obama wants this……I have no doubt. And he may very well keep his job. I will sit back with sadistic glee watching the chickens come home to roost….for this gravy train will end. I am prepared

  3. 3
    LC Grammar Czar, G.L.O.R. growls and barks:

    DJ has said several times that he doesn’t mind paying taxes. He should be in hog heaven come January 1.

  4. 4
    FrankOK growls and barks:

    I had a few aspirations of my own but I’ll just forget about them until after the revolution. :em08:

  5. 5
    LC HJ Caveman82952 growls and barks:

    All this coupled with the increase in unemployment, a byproduct of spending cuts and greatly reduced employment in the private sector resulting from cuts to Defense and other programs. Many of the other programs I will not miss. This is going to be very interesting, one hell of a ride I’m afraid. This is of course, assuming the country hasn’t come apart at the seams prior to that date. Now Illinois is considering a federal bailout or so the story said. I have to check on it. But if so, good luck with that guys, California will be right behind you. I can’t speak for Illinois, but I can speak for California. Yell Hell No! at the top of your lungs, starve us out. Let the rest of the country see how will this vaunted eample of socialism works! There is hope, we did vote down by three to one a bill setting up socialied medicine in this state…….it got skunked. And was never revived. We even voted down the tobacco tax last election. I was gratefully surpised and gratified. As I light up….
    The only thing people here understand is pain……self-inflicted pain.

  6. 6
    LC Gladiator growls and barks:

    LC Grammar Czar, G.L.O.R. says:

    DJ has said several times that he doesn’t mind paying taxes. He should be in hog heaven come January 1.

    MAY DJ pay ALL his income in taxes, then crow how Happy he is !!!!

  7. 7
    LC Gladiator growls and barks:

    So he doesn’t have time to attend security briefings or meet personally with other world leaders, but he has plenty of time for golf, celebrity fundraisers, and talk shows? Sounds to me like he doesn’t need to spend any more time occupying the office of the President of the United States either…

    It is a simple question of the cult of celebrity versus the RESPONSIBILITY of having to be a leader. Face time on talk shows, celebrity fundraisers, playing Santa Claus with other people’s money, and vapid questions from fawning sycophants show the lack of depth in his character. Netanyahu is dedicated to the preservation of his country and his people from barbarians who openly threaten them with a new Holocaust. Sitting next to that, Obooboo looks like a midget next to an NBA center. Being on the cover of People magazine and appearing with Letterman ( 7 times!) is much more fun than actually dealing with the economy which he has taken from sick to cancerous, or doing photo ops coming off of Air Force 1 as the world drifts into a new Dark Ages because he elevates enemies and abuses allies. Worse still, this “president” is continually whining that NOTHING is actually his fault. He continues to play the fiddle as everything burns and then complains that there is not enough applause for his performance! If you wonder what another four years would look like, just watch a rerun of a Mad Max film!

  8. 8
    LC Light29ID growls and barks:

    You don’t think that the next session of Congress won’t come in and retroactively adjust things?

    Nope, Nope, Nope

    All those fuckers will see is they have more money to spend to get reelected and that goes for both sides of the aisle. You can’t tell the fucking difference between a Democrat and a Republican when they all have their heads buried in the trough. Who gives a fly’in fuck if you have to fight over the last can of cat food when they get free meals from the lobbyists.

    Rope, Tree, Congresscritter…you know the rest.

  9. 9
    LC Light29ID growls and barks:

    LC HJ Caveman82952 @ #:

    Now Illinois is considering a federal bailout or so the story said.

    That won’t be a spark that starts the second American Revolution, it’ll be a Gotdamned nuclear blast.

  10. 10
    LC Gunsniper growls and barks:

    You don’t think that the next session of Congress won’t come in and retroactively adjust things?

    Not with Harry Reid cockblocking the hell out of most every bill the House passes.

  11. 11
    LC HJ Caveman82952 growls and barks:

    I don’t think our congress can reverse it.Now if the democrats lose the senate and White House, perhaps a different matter. With obama reducing our defensive capability over time, or willingnesss to massively retaliate. We may end up with another problem within our shores, something dwarfing nine-eleven. The libs will no doubt blame that on us. Seek to use the emergency to impose martial law. I have told people repeatedly, …. If the democrats cannot subjugate this country, they will do their level best to destroy it. They will be in for a very unpleasant surprise trying to rule us. I doubt they would survive. As for the giddy elves voting these cretins into office, I truly hope they get their just rewards.

  12. 12
    Draven32 growls and barks:

    So which polls are you going by, deej? the ones sampled dem+3, the ones dem + 9, the ones dem +11, or the ones dem +13? (all have been seen recently and quoted as gospel by the MSM)

  13. 13
    Tallulah growls and barks:

    This is going to cost me and my brother a tidy sum; in 2013 AND later.

    I just sent it to my whole family and a select list of others. Some in the family are Liberal Asshats, but FUCK THEM, they voted for this shit.

    And WTF is this “alternative minimum tax” shit? I always ignore it (doing mine on an online tax service).

    Romney and Ryan may not be able to stop the juggernaut, but Hussein will stretch out your gonads and DRIVE OVER them with the juggernaut — faster, with even MORE taxes.

    Goddammit.

  14. 14

    Note: Several mentioned Congress doing this or that. We must ensure we take Congress. As for Ovomit, should it actually be reelected, and the only way that will happen is blatant fraud, we need that Congress which will over ride it’s tyrannical decrees Executive Orders. Many of these are radically unconstitutional, and could be immediately dumped in the waste basket IF Congress simply acts on them. In point of fact, many of TEH WON’s activities should get it either life in federal prison, or death by firing squad. So, let us see if all that ammo that has been dispensed throughout the bureaucracies is used to start the war. We must not fire the first shot, but I’d wager many are ready to return fire.

  15. 15
    LC Gunsniper growls and barks:

    Obama has a greater than 70 percent chance of winning the election this time around. Romney is hovering around 20 percent. There is NO way he is going to increase his chances this close to the election to pull it off.

    Face it, it is a done deal…

    And here I thought people stopped taking quaaludes back in the seventies.

  16. 16
    single stack growls and barks:

    Obama has it in the bag.

    The Dems want to retain the tax breaks for the Middle class. They are only interested in putting the tax breaks for the uber-rich (the BUSH tax cuts) back to where they should have been.

    I’ve never met a leftist that wasn’t delusional. You’re no exception.
    The Bush tax cuts reduced the rates for every taxpayer. How is that not fair? Since the rich pay almost all of the taxes they got the biggest break. Again, how is that not fair?

    http://unskewedpolls.com/

  17. 17
    single stack growls and barks:

    An excellent summation of Teh Won (May he rot in hell)

    http://pjmedia.com/victordavishanson/the-fantasy-house-of-barack-obama/

  18. 18
    LC Ogrrre growls and barks:

    My investments widely diversified, much of which in commodities or precious metals.

    Caveman, I don’t know if that is an effective idea or not. FDR outlawed the owning of gold during the Great Depression, and it remained illegal to own for a long time after that. So, Il Douche declares it illegal to own gold or silver; what then?
    If TSHTF in a big way, lead and copper jacketed lead are the only two precious metals that will be worth a damn. Trade a round of .30-30 for a pound of hamburger or a roast. Trade a round of .22 for an egg. People will be able to use ammo to hunt or to try to secure their homes. A gold ingot or coin won’t be able to do that unless you are casting your own bullets, and I don’t know how well such ammo would perform.
    An acquaintence is buying pints of Jack Daniels for trade, and recommends buying mylar bags and oxygen absorbers to store dry foods such as beans and rice and flour, etc. With the oxygen absorber sealed in the mylar bag along with the food items, it should have a shelf life of up to 30 years. The coming unpleasantness shouldn’t last that long, but it doesn’t hurt to be prepared.

  19. 19
    LC HJ Caveman82952 growls and barks:

    I don’t own gold, and I got the ammo, chow and vices covered.

  20. 20
    bruce growls and barks:

    who cares what bongo has to say about any thing because gold will always be money.gold,guns,land,live stock and kerosene.