IBD: The Tax Tsunami On The Horizon

Posted by Kendall Harmon

The lowest bracket for the personal income tax, for instance, moves up 50% — to 15% from 10%. The next lowest bracket — 25% — will rise to 28%, and the old 28% bracket will be 31%. At the higher end, the 33% bracket is pushed to 36% and the 35% bracket becomes 39.6%.

But the damage doesn't stop there.

The marriage penalty also makes a comeback, and the capital gains tax will jump 33% — to 20% from 15%. The tax on dividends will go all the way from 15% to 39.6% — a 164% increase....

The HSA Withdrawal Tax Hike. "This provision of ObamaCare," according to ATR, "increases the additional tax on nonmedical early withdrawals from an HSA from 10% to 20%, disadvantaging them relative to IRAs and other tax-advantaged accounts, which remain at 10%."

Brand Name Drug Tax. Makers and importers of brand-name drugs will be liable for a tax of $2.5 billion in 2011. The tax goes to $3 billion a year from 2012 to 2016, then $3.5 billion in 2017 and $4.2 billion in 2018. Beginning in 2019 it falls to $2.8 billion and stays there. And who pays the new drug tax? Patients, in the form of higher prices.

Read it carefully and read it all.

Filed under: * Culture-WatchHealth & Medicine--The 2009 American Health Care Reform DebateLaw & Legal Issues* Economics, PoliticsEconomyConsumer/consumer spendingCorporations/Corporate LifePersonal FinanceTaxesThe U.S. GovernmentBudgetPolitics in GeneralHouse of RepresentativesOffice of the PresidentPresident Barack ObamaSenate

2 Comments
Posted July 22, 2010 at 7:07 am

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The URL for this article is http://www.kendallharmon.net/t19/index.php/t19/article/31192/



1. Boniface wrote:

Judgement is what is.

July 22, 11:48 am | [comment link]
2. Tomb01 wrote:

So most Americans are now depending on retirement savings income from dividends and capital gains….  So who will bear the brunt of Mr Obama’s new taxes?  Those who can least afford it, those on fixed retirement incomes.

Amazing.

July 22, 10:43 pm | [comment link]


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