Month: September 2012

By: Americans for Tax Reform Sunday, September 23rd, 2012  will mark the start of the 100-day countdown to “Taxmageddon” – the date 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, 2013: First Wave: expiration of 2001 and 2003 Tax Relief In 2001 and 2003, the GOP Congress enacted several tax cuts for small business owners, families, and investors (later re-upped by President Obama and Democrat Congress in 2010).  The following tax hikes will occur on January 1, 2013: Personal income tax rates will rise on January 1, 2013.  The top income tax rate will rise from 35 to 39.6 percent (this is also the rate at which the majority 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 a new and 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% Higher taxes on marriage and family coming on January 1, 2013.  The “marriage penalty” (narrower...