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Title: Blog by Novelist William S. Frankl, MD

A Taxing Disaster

Unless something is done soon, 2011 will also come with innumerable tax hikes — including a return of the death tax — that will be REAL killers (Editorial, “The Tax Tsunami On The Horizon,” Investor’s Business Daily, July 21, 2010).

Through the end of 2010, the federal estate tax rate is zero — part of the package of tax cuts that President Bush pushed through to get the economy going earlier in the decade.  But at midnight, Dec. 31, the death tax returns — at a rate of 55% on estates of $1 million or more.  But the death tax isn’t the only tax problem that will foisted on us on Jan. 1.  Many other cuts from the Bush administration will vanish and a new set of taxes will appear.  And it’s not just the rich who will pay:

1.The lowest bracket for the personal income tax increases 50% — to 15% from 10% .

2. The next lowest bracket — 25% — will rise to 28%, and the old 28% bracket will be 31%.

3. The 33 % bracket rises to 36% and the 35%  bracket becomes 39.6%.

4. The marriage penalty reappears and the capital gains tax will go up 33% — to 20% from 15%.

5.The tax on dividends will go up from 15% to 39.6% — a 164 % increase.

6. The capital gains and dividend taxes will go up further in 2013 when ObamaCare adds a 3.8% Medicare levy for individuals making more than $200,000 a year and joint filers making more than $250,000.

7. Other tax hikes include cutting the child tax credit to $500 from $1,000 and fixing the standard deduction for couples at the same level as it is for single filers.

8. Allowing the Bush tax cuts to expire will cost taxpayers $115 billion next year alone, according to the Congressional Budget Office, and $2.6 trillion through 2020.

Raising taxes like this is catastrophic for the economy in general and for the personal lives of all Americans especially those in the middle class and retirees. Thank you Mr. President and the Democrat Party!!

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