Three great waves ... IRS

*Subject:*Three great waves ... IRS

This will really make your blood boil - *at least it ought to*!!!

*In just **four 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 the effect of all three waves)... *
First Wave: **


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. ** Second Wave: *

Obamacare *

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. *
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 (rather than slowly-deduct,
or "depreciate") equipment purchases up to $250,000.

Entire Article HERE

Six Months to Go Until The Largest Tax Hikes in History

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 higher marginal tax rates. The full list of marginal rate hikes is below:

- The 10% bracket rises to an expanded 15%
- The 25% bracket rises to 28%
- The 28% bracket rises to 31%
- The 33% bracket rises to 36%
- The 35% bracket rises to 39.6%

Entire Article HERE

Americans may be slammed by shocking tax hike - Pittsburgh Tribune-Review

After nearly a decade of federal tax cuts, Americans could awaken New Year's Day with a whopper of a hangover.

Breaks covering everything from child tax credits to the death tax are set to expire that day, less than six months from now, bringing higher payments for nearly every American who pays taxes.

"We've never in history seen anything quite like this, where such a major portion of the tax code is set to expire on a single date and affect so many Americans all at once," said Scott Hodge, president of The Tax Foundation, a Washington nonprofit that tracks tax policies.

Entire Article HERE