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Bracing for Obamageddon: Obama continues with plans for largest tax hike in US history in 2011.


During the election Obama pledged over and over not to raise taxes for those making less than a quarter million! Now, the lowest earners will see the biggest tax hike of all! Income taxes on the first $16,750 will go up 50%! This means that the lowest paid will see the biggest percent increase in their taxes.

Taxes on top of taxes!!! Look at all the new taxes instituted by Obama/Pelosi/Reid in Obamacare! None of these were widely reported by the left-wing media. America is facing financial apocalypse in the near future, as working class families are already struggling desperately to make ends meet before the taxes go into effect.

From ATR.org

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.

The return of the Death Tax. This year, there is no death tax. For those dying on or after January 1 2011, 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. The capital gains tax will rise from 15 percent this year to 20 percent in 2011. The dividends tax will rise from 15 percent this year to 39.6 percent in 2011. These rates will rise another 3.8 percent in 2013.

The Tanning Tax. This went into effect on July 1st of this year. It imposes a new, 10% excise tax on getting a tan at a tanning salon. There is no exemption for tanners making less than $250,000 per year.

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).

The HSA Withdrawal Tax Hike. This provision of Obamacare increases the additional tax on non-medical early withdrawals from an HSA from 10 to 20 percent, disadvantaging them relative to IRAs and other tax-advantaged accounts, which remain at 10 percent.

Brand Name Drug Tax. Starting next year, there will be a multi-billion dollar tax assessment imposed on name-brand drug manufacturers. This tax, like all excise taxes, will raise the price of medicine, hurting everyone.

Economic Substance Doctrine. The IRS is now empowered to disallow perfectly-legal tax deductions and maneuvers merely because it judges that the deduction or action lacks “economic substance.” This is obviously an arbitrary empowerment of IRS agents.

Employer Reporting of Health Insurance Costs on a W-2. This will start for W-2s in the 2011 tax year. While not a tax increase in itself, it makes it very easy for Congress to tax employer-provided healthcare benefits later.

From Sunshine State News…

But political inertia and class warfare block the way.

In his radio address Saturday, Obama said that continued tax cuts for higher earners “will not create jobs; they will kill them.”

Senate Majority Leader Harry Reid and House Speaker Nancy Pelosi have sounded no less belligerent. After authorizing trillions in stimulus and health-care programs, they claim that deficit-reduction is now their top priority.

But the public is clearly anxious — if not downright angry — about any policies that will result in higher taxes. And unless the Democratic-controlled Congress takes action by Dec. 31 to extend the current rates, virtually every American will see his or her taxes increase.

Here are the current and future rates that will be effective Jan. 1 (income ranges are for taxpayers who are married and filing jointly):

* 10% now — up to $16,750 — 15% (Jan. 1)
* 15% — $16,751-$68,000 — 15%
* 25% — $68,001-$137,300 — 28%
* 28% — $137,301-$209,250 — 31%
* 33% — $209,251-$373,650 — 36%
* 35% — over $373,650 — 39.6%.

Even for those who stay in the 15 percent bracket, taxes will increase because of higher capital gains rates (moving up 15 percent to 20 percent), higher top dividend rates (15 percent to 39.6 percent) and the return of the estate (“death”) tax, which goes from 0 percent to 55 percent.

In addition, higher taxes on insurers, drug makers and other health-care businesses will be passed on to everyone in the form of higher medical costs.