On January 1, 2013, there will be an explosion of new taxes and tax increases.I believe that a vote for Romney will be your best chance to reverse some of the below tax increases. For some families these taxes can be devastating.The effect on you may be worse than the example below.
Based on the best estimates here are some of the changes. Please, make yourself aware of the facts and not the political spin that is rampert in the news. If you do, I am sure you will make the right decision and cast your vote for Romney, McMahon and Roraback and help turn this economy around.
Personal income tax rates:
the 10 % bracket rises to a new and expanded 15 %
25 % to 28 %
28 % to 31 %
33 % to 36 %
35 % to 39.6 %
- Child tax credit cut in half from $ 1000 to $ 500 per child
- Capital gains tax rises from 15 % to 23.8 %
- Top dividends tax rises from 15 % to 43.4 % (tax hike plus, Obamacare surtax)
Some of the 20 new or higher taxes embedded in Obamacare:
- 10 % tax on tanning services,
- Medical cabinet tax, the HSA withdrawal tax, Medical Devices taxes
- Tax on profits from home sales ( see your financial advisor to determine if it applies to you)
The Alternative Minimum Tax (AMT) will now cover approx. 31 million families at higher tax rates instead of the 4 million now. ( see your financial advisor for more details and if you will fall under this tax )
Many taxes raised on all types of businesses
Tax benefits for Education and Teaching reduced.
Charitable contributions via transfers from IRAs no longer allowed.
This is the largest tax increase in American history.
Add in Gov. Malloy's tax increases (Ct's largest tax increase)
To help better understand the impact see the below sample family and some of the taxes for comparison vs. prior year
Sample with same Year to Year Income
(Estimates only)
Names: John & Jane Brown
Ages: Both age 52
Children: Two, ages 17 and 15
2012
2013
Income
John
75,000
75,000
Jane
33,000
33,000
Dividends
1,800
1,800
Capital Gains
1,000
1,000
Total Income
110,800
110,800
Itemized Deductions
22,500
22,500
Exemptions
14,800
14,800
Net Income
73,500
73,500
Note: the new taxes above need to be paid out of the above Net Income in 2013 thus less income to spend !
Fed Inc Tax
Salary
9,805
9,840
Dividends
270
504
Cap Gain
150
200
Social Security Tax
4,620
6,820
Child Tax Credit
1,000
500
Total Federal Tax
13,845
16,864
About
20% Tax Increase !!!!
plus the new taxes !!!
Plus the possible exposure to the Alternative Minimum Tax (AMT)
Still not convinced ? Watch this video from the founder of Home Depot
http://www.youtube.com/watch?v=-TKCwSVH7Bw&feature=player_embedded
The above sample is an estimate only and is not intended to be represent and particular situation. See your tax advisor for how it may apply to you.
( this example was developed by Jerry Friedrich, Irv Agard and Dr Robin Appleby and is only a simple example. Your own results may vary depending on your income, credits, exemptions, deductions etc. See your own financial expert for your personal circumstance)
