From Americans for Tax Reform
In just six months, on January 1, 2011, 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, 2011, here’s what happens… (read it to the end, so you see all three waves)…
Expiration of 2001 and 2003 Tax Relief
In 2001 and 2003, the GOP Congress enacted several tax cuts for investors, small business owners, and families. These will all expire on January 1, 2011.
Personal Income Tax Rates Will Rise
The top income tax rate will rise from 35 to 39.6 percent (this is also the rate at which two-thirds 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 highermarginal tax rates.
The full list of marginal rate hikes is below:
bracket rises to an expanded 15%
bracket rises to 28%
bracket rises to 31%
bracket rises to 36%
bracket rises to 39.6%
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 only, there is no death tax. (It’s a quirk!) 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, a business, a retirement account, could easily pass along a death tax bill to their loved ones. Think of the farmers who don’t make much money, but their land, which they purchased years ago with after-tax dollars, is now worth a lot of money. Their children will have to sell the farm, which may be their livelihood, just to pay the estate tax if they don’t have the cash sitting around to pay the tax.
Think about your own family’s assets. Maybe your family owns real estate, or a business that doesn’t make much money, but the building and equipment are worth $1 million. Upon their death, you can inherit the $1 million business tax free, but if they own a home, stock, cash worth $500K on top of the $1 million business, then you will owe the government $275,000 cash! That’s 55% of the value of the assets over $1 million! Do you have that kind of cash sitting around waiting to pay the estate tax?
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 Second Wave
There are over twenty new or higher taxes in Obamacare. Several will first go into effect on January 1, 2011. They include:
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 “Special Needs Kids Tax”
This provision of Obamacare imposes a cap on flexible spending accounts (FSAs) of $2500 (Currently, there is no federal government limit). 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.
Tuitiion 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 not be used to pay for this type of special needs education.
The HSA (Health Savings Account) Withdrawal Tax Hike.
This provision of Obamacare increases the additional tax on non-medical early withdrawals from an HSA from 10 to 0 percent, disadvantaging them relative to IRAsand other tax-advantaged accounts, which remain at 10 percent.
The Third Wave
The Alternative Minimum Tax (AMT) and Employer Tax Hikes
When Americans prepare to file their tax returns in January of 2011, they’ll be in for a nasty surprise-the AMT won’t be held harmless, and many tax relief provisions will have expired.
The major items include:
The AMT will ensnare over 28 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 28.5 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.
Small business ‘expensing’ will be slashed and 50% expensing will disappear.
Small businesses can normally ‘expense’ (deduct) rather than slowly-deduct or ‘depreciate’ equipment purchases up to $250,000.
The traditional $250,000 figure will be cut all the way down to $25,000!
Larger businesses can currently expense half of their purchases of equipment. In January of 2011, ALL of it will have to be “depreciated.” (The depreciation period over which a business must write off a major expense is often THIRTY 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
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.
PDF Version Read more:
And Worse Yet?
Now, your insurance will be INCOME on your W2’s!
One of the surprises we’ll find come next year, is what follows – – a little “surprise” that 99% of us had no idea was included in the “new and improved” healthcare legislation . . . the dupes, er, dopes, who backed this administration will be astonished!
Starting in 2011, (next year folks), your W-2 tax form sent by your employer will be increased to show the value of whatever health insurance you are given by the company. It does not matter if that’s a private concern or governmental body of some sort.
If you’re retired? So what… your gross will go up by the amount of insurance you get.
You will be required to pay taxes on a large sum of money that you have never seen. Take your tax form you just finished and see what $15,000 or $20,000 additional gross does to your tax debt. That’s what you’ll pay next year.
For many, it also puts you into a new higher bracket so it’s even worse.
This is how the government is going to buy insurance for the15% that don’t have insurance and it’s only part of the tax increases.
Not believing this??? Here is a research of the summaries…..
On page 25 of 29: TITLE IX REVENUE PROVISIONS- SUBTITLE A: REVENUE OFFSET PROVISIONS-(sec. 9001, as modified by sec. 10901) Sec.9002 “requires employers to include in the W-2 form of each employee the aggregate cost of applicable employer sponsored group health coverage that is excludable from the employees gross income.”
Joan Pryde is the senior tax editor for the Kiplinger letters.
Go to Kiplingers and read about 13 tax changes that could affect you. Number 3 is what is above.
Madam Speaker, I rise to introduce the Private Option Health Care Act. This bill places individuals back in control of health care by replacing the recently passed tax-spend-and-regulate health care law with reforms designed to restore a free market health care system.
The major problems with American health care are rooted in government policies that encourage excessive reliance on third-party payers. The excessive reliance on third-party payers removes incentives for individual patients to concern themselves with health care costs. Laws and policies promoting Health Maintenance Organizations (HMOs) resulted from a desperate attempt to control spiraling costs. However, instead of promoting an efficient health care system, HMOs further took control over health care away from patients and physicians. Furthermore, the third-party payer system creates a two-tier health care system where people whose employers can afford to offer “Cadillac” plans have access to top quality health care, while people unable to obtain health insurance from their employers face obstacles in obtaining quality health care.
The Private Option Health Care Act gives control of health care back into the hands of individuals through tax credits and tax deductions, improving Health Savings Accounts and Flexible Savings Accounts. Specifically, the bill:
A. Provides all Americans with a tax credit for 100% of health care expenses. The tax credit is fully refundable against both income and payroll taxes;
B. Allows individuals to roll over unused amounts in cafeteria plans and Flexible Savings Accounts (FSA);
C. Provides a tax credit for premiums for high-deductible insurance policies connected with a Health Savings Accounts (HSAs) and allows seniors to use funds in HSAs to pay for medigap policies;
D. Repeals the 7.5% threshold for the deduction of medical expenses, thus making all medical expenses tax deductible.
This bill also creates a competitive market in heath insurance. It achieves this goal by exercising Congress’s authority under the Commerce Clause to allow individuals to purchase health insurance across state lines. The near-monopoly position many health insurers have in many states and the high prices and inefficiencies that result, is a direct result of state laws limiting people’s ability to buy health insurance that meets their needs, instead of a health insurance plan that meets what state legislators, special interests, and health insurance lobbyists think they should have. Ending this ban will create a truly competitive marketplace in health insurance and give insurance companies more incentive to offer quality insurance at affordable prices.
The Private Option Health Care Act also provides an effective means of ensuring that people harmed during medical treatment receive fair compensation while reducing the burden of costly malpractice litigation on the health care system. The bill achieves this goal by providing a tax credit for negative outcomes insurance purchased before medical treatment. The insurance will provide compensation for any negative outcomes of the medical treatment. Patients can receive this insurance without having to go through lengthy litigation and without having to give away a large portion of their awards to trial lawyers.
Finally, the Private Option Health Care Act also lowers the prices of prescription drugs by reducing barriers to the importation of Food and Drug Administration (FDA)-approved pharmaceuticals. Under my bill, anyone wishing to import a drug simply submits an application to the FDA, which then must approve the drug unless the FDA finds the drug is either not approved for use in the United States or is adulterated or misbranded. This process will make safe and available imported medicines affordable to millions of Americans. Letting the free market work is the best means of lowering the cost of prescription drugs.
Madam Speaker, the Private Option Health Care Act allows Congress to correct the mistake it made last month by replacing the new health care law with health care measures that give control to health care to individuals, instead of the federal government and politically-influential corporations. I urge my colleagues to support this bill.
On Thursday, April 22, the Florida House and Senate voted in the affirmative for Florida Health Care Freedom. HJR 37 proposes an amendment to the State Constitution prohibiting the government from interfering with an individual’s personal health care decisions.
I heard from many different legislators who were constantly getting emails and phone calls from their constituents. Your perseverance and hard work has paid off. This proposed Constitutional amendment will be on the ballot in November.
Now that we have won in our fight to place this amendment on the ballot, there is one more thing we need to do. Please send an email and thank everyone who voted for Florida Health Care Freedom.
The following is a list of emails for the Florida House members who voted yes. The list has been compiled with semicolons after each address so that you will be able to send these all out at the same time if you copy and paste.
Here is a separate list of the Florida Senators who voted yes. SJR 72 was the Senate version.
Once again Congratulations! Thank you for everything that you do.
Florida Campaign for Liberty
Dear Liberty Lovers,
The Florida Healthcare Freedom Act (HJR 37) needs our help to get passed out of committees and onto the House floor for a vote. Immediate action is needed!
TODAY is the last chance for the Healthcare Freedom Act to be approved by the Rules and Calendar Council for the floor. We need to act now!
“The federal mandate violates individuals’ and states’ rights. If you believe in medical freedom; if you believe in individual rights, if you believe that you alone should have the right to decide what health care plan is best for you and your family — if you believe in these fundamental values that our founding fathers believed in then you need to support this legislation,” said Senator Carey Baker
There is a week left in session, HJR 37 – The Healthcare Freedom Act – needs to be approved by the Rules and Calendar Council so it may go to the floor for a vote. There is one more Rules and Calendar Council meeting TODAY, Monday, April 19th, 6:15pm.
Please call the following Representatives on this committee and within the leadership and urge them to approve the bill. You may call them at the following numbers.
Let them know as a Floridian, you deserve the right to choose your own health care.
These Representatives are Florida’s last chance for Health Care Freedom.
Cannon, Dean (R) 850-488-2742 407-623-5740 Incoming Speaker
Galvano, Bill (R) 850-488-4086 941-708-4968 Chair
Bogdanoff, Ellyn Setnor (R)850-488-0635 954-762-3757 Vice Chair
Hasner, Adam (R)850-488-1993 561-279-1616
Reagan, Ron (R)850-921-7747 941-727-6447
Adams, Sandra (R)Already Co-Sponsor
To read about this bill please visit: Florida Healthcare Freedom Bill
To Become a citizen sponsor of this bill, along with other Freedom bills, please visit: FLFreedom.org
HJR 37 has hit a roadblock in the House Rules and Calendar Council. We need your help now. Please call the following Representatives on this committee and urge them to approve the bill. Let them know as a Floridian, you deserve the right to choose your own health care.
You may telephone them at the following numbers. If you click on the name you will be taken to their legislative page where you can send an email.
At the bottom under Quick Links are several news articles posted today for a little more background information. The bottom line is that we must apply more pressure to the legislature if we want Health Care Freedom in Florida.
Please make a special point to contact Dean Cannon – the incoming Speaker, Adam Hasner – Majority Leader, and Bill Galvano – the Committee Chair. After these 3 call everyone who is not a co-sponsor.
These Representatives could very well be Florida’s last chance for Health Care Freedom.
MOUNT DORA — A doctor who considers the national health-care overhaul to be bad medicine for the country posted a sign on his office door telling patients who voted for President Barack Obama to seek care “elsewhere.”
“I’m not turning anybody away — that would be unethical,” Dr. Jack Cassell, 56, a Mount Dora urologist and a registered Republican opposed to the health plan, told the Orlando Sentinel on Thursday. “But if they read the sign and turn the other way, so be it.”
The sign reads: “If you voted for Obama … seek urologic care elsewhere. Changes to your healthcare begin right now, not in four years.”
Estella Chatman, 67, of Eustis, whose daughter snapped a photo of the typewritten sign, sent the picture to U.S. Rep. Alan Grayson, the Orlando Democrat who riled Republicans last year when he characterized the GOP’s idea of health care as, “If you get sick, America … Die quickly.”
Chatman said she heard about the sign from a friend referred to Cassell after his physician recently died. She said her friend did not want to speak to a reporter but was dismayed by Cassell’s sign.
“He’s going to find another doctor,” she said.
Cassell may be walking a thin line between his right to free speech and his professional obligation, said William Allen, professor of bioethics, law and medical professionalism at the University of Florida’s College of Medicine.
Allen said doctors cannot refuse patients on the basis of race, gender, religion, sexual orientation or disability, but political preference is not one of the legally protected categories specified in civil-rights law. By insisting he does not quiz his patients about their politics and has not turned away patients based on their vote, the doctor is “trying to hold onto the nub of his ethical obligation,” Allen said.
“But this is pushing the limit,” he said.
Cassell, who has practiced medicine in GOP-dominated Lake County since 1988, said he doesn’t quiz his patients about their politics, but he also won’t hide his disdain for the bill Obama signed and the lawmakers who passed it.
In his waiting room, Cassell also has provided his patients with photocopies of a health-care timeline produced by Republican leaders that outlines “major provisions” in the health-care package. The doctor put a sign above the stack of copies that reads: “This is what the morons in Washington have done to your health care. Take one, read it and vote out anyone who voted for it.”
Cassell, whose lawyer wife, Leslie Campione, has declared herself a Republican candidate for Lake County commissioner, said three patients have complained, but most have been “overwhelmingly supportive” of his position.
“They know it’s not good for them,” he said.
Cassell, who previously served as chief of surgery at Florida Hospital Waterman in Tavares, said a patient’s politics would not affect his care for them, although he said he would prefer not to treat people who support the president.
“I can at least make a point,” he said.
The notice on Cassell’s office door could cause some patients to question his judgment or fret about the care they might receive if they don’t share his political views, Allen said. He said doctors are wise to avoid public expressions that can affect the physician-patient relationship.
Erin VanSickle, spokeswoman for the Florida Medical Association, would not comment specifically.
But she noted in an e-mail to the Sentinel that “physicians are extended the same rights to free speech as every other citizen in the United States.”
The outspoken Grayson described Cassell’s sign as “ridiculous.”
“I’m disgusted,” he said. “Maybe he thinks the Hippocratic Oath says, ‘Do no good.’ If this is the face of the right wing in America, it’s the face of cruelty. … Why don’t they change the name of the Republican Party to the Sore Loser Party?”