Implications For The Expiring Bush Tax Cuts
August 10, 2010
The financial markets hate uncertainty, and the "Mother of All Uncertainties" is looming in December, when Congress will decide what will happen to the Bush tax cuts, which are set to expire at midnight on Dec. 31. And with it, a torrent of job killing taxes posed to cripple any chances of an economic recovery begins in 2011. Among them, the death tax-a 55 percent bombshell levied on estates of $1 million or more. But that's just the tip of the iceberg, says radio talk show host Scott Hennen.
According to Investor's Business Daily:
- Personal income tax, for instance, moves up 50 percent -- to 15 percent from 10 percent.
- The next lowest bracket -- 25 percent -- will rise to 28 percent, and the old 28 percent bracket will be 31 percent.
- At the higher end, the 33 percent bracket is pushed to 36 percent and the 35 percent bracket becomes 39.6 percent.
- The marriage penalty also makes a comeback, and the capital gains tax will jump 33 percent - to 20 percent from 15 percent.
- The tax on dividends will go all the way from 15 percent to 39.6 percent -- a 164 percent increase.
Letting the Bush cuts expire will cost taxpayers $115 billion next year alone, according to the Congressional Budget Office, and $2.6 trillion through 2020.
Regardless of class-warfare rhetoric aimed at the "wealthiest 1 percent" of Americans, taxes will skyrocket for all of us, in part to pay for vastly unpopular legislation President Obama has passed on a purely partisan basis, says Hennen.
Source: Scott Hennen, "Expiring Bush tax cuts - implications," Jewish World Review, August 10, 2010.
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