Thursday, April 12, 2012

Taxmageddon Will Hit on January 1, 2013

Taxmageddon Will Hit on January 1, 2013:

The Bush tax cuts will expire on January 1. The Obamacare taxes will hit, unless the Supreme Court declares the law unconstitutional. The average Joe has no idea of what’s in store for him.
The liberal Washington Post calls this taxmageddon. I like the phrase. It has a sense of reality about it.
Here are highlights of which taxes will rise.
  • The 2001 and 2003 Bush “tax cuts” expire
  • Taxes on investment income
  • Estate and gift taxes
  • Income taxes
  • Marriage penalty returns
  • Child credit drops
  • Taxes on first $8700 of wages increase by 50 percent
  • Payroll taxes go from 4.2 percent back to 6.2 percent

The Heritage Foundation did an analysis of all the tax increases scheduled for 2013. The report adds these:

  • The Alternative Minimum Tax (AMT)
  • Five new Obamacare taxes
  • About 50 “tax extenders” will go away
  • Small business owners can no longer write off business equipment purchases immediately
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