06
Feb
08

Impending Tax Increases

Good info from the Republican Study Committee and our friends at ATR: 

Impending Tax Increases
If Congress Takes No Action….

Unless Congress takes action, the following tax increases will automatically occur for the following tax-years:

2008:

 The exemption for the Alternative Minimum Tax (AMT) will decrease from $44,350 to $33,750 for single filers and from $66,250 to $45,000 for married couples filing jointly.

 Taxpayers will not be allowed to deduct their state and local general sales taxes from their federal income tax.

 Taxpayers will not be able to adjust their income for qualified tuition and related expenses.

 Businesses will not be able to claim a tax credit for research, experimentation, and development activities.

 First-time homebuyers in the nation’s capital will no longer be able to claim a tax credit.

2009:

 Taxpayers will no longer be able to claim a tax credit for certain residential energy efficient property, a tax credit for the construction of new energy efficient homes, or a tax deduction for energy efficient commercial building property.

2010:

 The Section 179 business expensing cap will decrease from $128,000 (plus inflation after 2008) to $25,000, and the starting point for the phase-out of this deduction will decrease from $510,000 (plus inflation after 2008) to $100,000.

2011:

 The marginal income tax rates will increase as follows:
–35% bracket will increase to 39.6%
–33% bracket will increase to 36%
–28% bracket will increase to 31%
–25% bracket will increase to 28%
–10% and 15% brackets will condense to 15%

 The capital gains rates for individuals will increase from 15% and 0% to 20% and 10%.

 Dividends will no longer be taxed at the capital gains rates for individuals, thereby increasing the double taxation of dividends by as much as 62%.

 The standard deduction for couples as a percentage of the standard deduction for singles will decrease from 200% to 167%–restoring the marriage penalty.

 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.

 The child tax credit will decrease from $1,000 to $500.

 The “death” tax using the “stepped up” basis will return with a 55% maximum rate (including surtax) and a $1 million exemption, after years of decreasing “death” tax rates, increasing exemptions, and one year using the “carryover” basis to calculate the tax due.

Advertisements

2 Responses to “Impending Tax Increases”


  1. 1 Sabotage
    February 6, 2008 at 1:12 pm

    Surely now that Congress is working 5 days a week since the Democrats took control they will have plenty of time to address these issues.

    We’re screwed.

  2. 2 PJ
    February 6, 2008 at 1:25 pm

    We’re screwed anyway you slice it. Politicans are addicted to our money.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


February 2008
M T W T F S S
« Jan   Mar »
 123
45678910
11121314151617
18192021222324
2526272829  

FF Fotos

P8070066 0

P8070053 0

DSC05323 0

More Photos

%d bloggers like this: