Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Here is a sampling of some of the areas impacted if the Bush tax cuts are allowed to expire:
1. Federal tax rates increase across the board
The lowest federal tax bracket, aside from individuals who pay no income tax, is currently 10%. If the tax cuts expire, the lowest bracket would revert back to 15%. Other brackets will go back to their original rates, which is an increase of 3% except for the current top bracket of 35%, which would escalate to 39.6%.[ii]
2. Capital Gains/Qualified Dividends
Through the original cuts, the maximum tax rate on long-term capital gains (gains on assets that have been held for at least one year before being sold) and qualified dividends was also reduced to 15%, with lower income filers not paying any tax. If the tax cuts expire, individuals in the lowest tax bracket would pay 10% on long-term capital gains; everyone else would pay 20% and qualified dividends would resume being taxed at the regular tax rate of the filer (up to 39.6%). Short-term capital gains rates will also increase since they are already tied to the taxpayer’s marginal rate, which is increasing.
3. Estate & Gift Tax Increases
The tax cuts enacted in 2001 and 2003 originally whittled away at the estate and gift tax until there was no estate tax in 2010. Congress modified that in 2010 so that currently, the maximum estate tax rate is 35% when the owner of a property dies, and the basic exemption from the tax is anything under $5.1 million. The same rate and exclusion amount apply to the gift tax, which stipulates how much a person can gift to others over the course of their lifetime without paying taxes on the money. In 2013, the rate on those large estates as well as lifetime gifting is scheduled to jump back to 55% and the exclusion drops to $1 million. That would result in a large increase in the number of people affected by the tax.
Time to Prepare
It’s never too early to prepare now for tax moves to come. Many advisors and attorneys may become overwhelmed as the year goes on and as investors, business owners and taxpayers become increasingly concerned.
For estate planning and purposes, however, the estate and gift tax changes may have a profound impact on the amount of wealth that can be transferred to others without being taxed. Therefore, individuals should consider making any wealth transfers or gifts to family members before the end of 2012, while the exemption still stands at $5.1 million.
hilltopjay, please don't copy/paste someone else's work without at least linking to the original. Also, if you do copy/paste, please write at least one sentence explaining why you think it's relevant to the discussion and what the point of sharing it is. No one wants to read 500 words that you didn't even write without knowing why it's relevant to this discussion.
Where were those tax cuts during the two decade period from 1950 to 1970 when GDP growth rate averaged more than 6% and the debt burden was half (what a coincidence!) of what it is today? It's interesting how people can rationalize paying down debt with less money collected.
hilltopjay, please don't copy/paste someone else's work without at least linking to the original. Also, if you do copy/paste, please write at least one sentence explaining why you think it's relevant to the discussion and what the point of sharing it is. No one wants to read 500 words that you didn't even write without knowing why it's relevant to this discussion.
Not to mention that this stupid thread is non-NYC related.
I repped you NYer. These people don't let facts get in the way....when you shout 47% are victims/welfare cases who are losers, his base smiles wide and writes checks. When you actually have a brain and think, you realize the majority of that 47% are seniors who have worked and paid taxes their whole lives, and students who are trying to do the right thing so that they can work and pay taxes and not be dependent on government.
Like seriously..the fact that he said that means he will A: Say anything regardless of whether it is true or not, B: He is simply a talking head for a very small, elite group of people and C: Is an idiot. Despite the fact that his statement is 100% false, who would even say something so callous and disrespectful to half of the population WHEN YOU ARE RUNNING FOR PRESIDENT OF THE ENTIRE COUNTRY?
He is toxic for this country, and barring some unforeseen catastrophe, has just lost this race IMO. This party has seriously turned into a very unfunny cartoon full of caricatures and one-line simpletons.
My question exactly!
Why do the Republicans always seem to come up with these disasters to run for president these days? They really can't get anyone better?
Why do they come up with these disasters? Because they put away reasonable people in their own ranks like Huckabee, Powell and Mitch Daniels until only the jerks are left to run for office.
I repped you NYer. These people don't let facts get in the way....when you shout 47% are victims/welfare cases who are losers, his base smiles wide and writes checks. When you actually have a brain and think, you realize the majority of that 47% are seniors who have worked and paid taxes their whole lives, and students who are trying to do the right thing so that they can work and pay taxes and not be dependent on government.
Like seriously..the fact that he said that means he will A: Say anything regardless of whether it is true or not, B: He is simply a talking head for a very small, elite group of people and C: Is an idiot. Despite the fact that his statement is 100% false, who would even say something so callous and disrespectful to half of the population WHEN YOU ARE RUNNING FOR PRESIDENT OF THE ENTIRE COUNTRY?
He is toxic for this country, and barring some unforeseen catastrophe, has just lost this race IMO. This party has seriously turned into a very unfunny cartoon full of caricatures and one-line simpletons.
Also veterans who fought, and continue to fight bravely for this country so guys like Mitt and his Bain buddies can rack up millions and stash their fortune away in the Cayman Islands....
Also veterans who fought, and continue to fight bravely for this country so guys like Mitt and his Bain buddies can rack up millions and stash their fortune away in the Cayman Islands....
romney must have brainwashed you if you can't see both sides of the coin.
Nah...I think Obama and his "charm" has brainwashed people like you with your hand out asking for more welfare money.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
