Special Needs Parents/Parents need to read this Heathcare/Income Tax increase

[Guest guest]

This is only the beginning….

Some interesting data on the coming tax changes.

Subject: YOUR Money?? You gotta' be kidding!

All:

Got this from a friend, so I researched it on the Internet, then

copied and pasted the applicable section of the law. In addition,

I checked this

out with my tax consultant and she says it's valid. This is

not intended to be political in any way. Make your own judgment

based on your

values, the only reason I'm sending this is to warn you to

analyze your financial situation and adjust your withholding

accordingly.

I contacted my Congressman about House Bill 3590, the Health

Care bill and asked for a summary of changes. The Aid directed me

to http://www.thomas.gov/, enter "HR 3590" in the search box and

look for "CRS Summaries."

Starting in 2011,next year,the W-2 tax form sent by your employer

will be increased to show the value of whatever health insurance you are

provided. It doesn't matter if you're retired; your gross income will go up

by the amount of insurance your employer paid for. So you?ll be required

to pay taxes on a larger sum of money than you actually received; take

the tax form you just finished and see what $15,000.00 or $20,000.00

additional gross income does to your tax debt. That's what you'll pay next

year. For many it puts you into a much higher bracket. This is how the

government is going to buy insurance for fifteen (15) percent that don't have

insurance and it's only part of the tax increases, but it's not really a

"tax increase" as such, it is a redefinition of your taxable income.

Not believing this I researched the CRS Summary and here's what

found:

Title IX Revenue Provisions?Subtitle A: Revenue Offset

"(Sec. 9002) Requires employers to include in the W-2 form of each

employee the aggregate cost of applicable employer-sponsored group health

coverage that is excludable from the employee's gross income (excluding the

value of contributions to flexible spending arrangements)."

Joan Pryde, is the Senior Tax Editor for the Kiplinger Letters.

Go to

Kiplinger's and read about the thirteen (13) tax changes for 2010

that could affect you.

Why am I sending you this? In hopes you will forward it to every

single person in your address book. People have the right to know the

truth because an election is coming in November. Vote intelligently

based on your values. But also adjust your tax withholding, or increase your

savings, so that you aren't surprised and put in a jam when your federal income taxes

are due on April 15, 2012.

HERE'S THE TAX SCOOP IN DETAIL.... Brace yourself.. It's NOT

good..!

In just six months, 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, 2011:

First Wave: Expiration of 2001 and 2003 Tax Relief

In 2001 and 2003, the GOP Congress enacted several tax cuts for

investors, small business owners, and families.

These will all expire on January 1, 2011:

Personal income tax rates will rise. The top income tax rate will

rise from 35 to 39.6 percent (this is also the rate at which

two-thirds 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 an 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. The ?marriage penalty?

(narrower tax brackets for married couples) will return from the

first dollar of

income. The child tax credit will be cut in half from $1000 to

$500 per child. The standard deduction will no longer be doubled

for married

couples relative to the single level. The dependent care and

adoption tax credits will be cut.

The return of the Death Tax. This year, there is no death tax.

For those dying on or after January 1 2011, there is a 55 percent

top death tax

rate on estates over $1 million. A person leaving behind two

homes and a retirement account could easily pass along a death tax

bill to their loved

ones.

Higher tax rates on savers and investors. The capital gains tax

will rise from 15 percent this year to 20 percent in 2011. The

dividends tax will

rise from 15 percent this year to 39.6 percent in 2011. These

rates will rise another 3.8 percent in 2013.

Second Wave: Obamacare

There are over twenty new or higher taxes in Obamacare. Several

will first go into effect on January 1, 2011. They include:

The ?Medicine Cabinet Tax? Thanks to Obamacare, Americans will no

longer be able to use health savings account (HSA), flexible

spending account

(FSA), or health reimbursement (HRA) pre-tax dollars to purchase

non-prescription, over-the-counter medicines (except insulin).

The ?Special Needs Kids Tax? This provision of Obamacare imposes

a cap on flexible spending accounts (FSAs) of $2500 (Currently,

there is no

federal government limit). There is one group of FSA owners for

whom this new cap will be particularly cruel and onerous: parents

of special needs

children. There are thousands of families with special needs

children in the United States , and many of them use FSAs to pay

for special needs

education. Tuition rates at one leading school that teaches

special needs children in Washington , D.C. (National Child

Research Center) can easily

exceed $14,000 per year. Under tax rules, FSA dollars can be used

to pay for this type of special needs education.

The HSA Withdrawal Tax Hike. This provision of Obamacare

increases the additional tax on non-medical early withdrawals from

an HSA from 10 to 20

percent, disadvantaging them relative to IRAs and other

tax-advantaged accounts, which remain at 10 percent.

Third Wave: The Alternative Minimum Tax

and Employer Tax Hikes

When Americans prepare to file their tax returns in January of

2011, they?ll be in for a nasty surprise?the AMT won?t be held

harmless, and many tax

relief provisions will have expired. The major items include:

The AMT will ensnare over 28 million families, up from 4 million

last year. According to the left-leaning Tax Policy Center ,

Congress? failure to

index the AMT will lead to an explosion of AMT taxpaying

families?rising from 4 million last year to 28.5 million. These

families will have to

calculate their tax burdens twice, and pay taxes at the higher

level. The AMT was created in 1969 to ensnare a handful of

taxpayers.

Small business expensing will be slashed and 50% expensing will

disappear. Small businesses can normally expense (rather than

slowly-deduct, or

?depreciate?) equipment purchases up to $250,000. This will be

cut all the way down to $25,000. Larger businesses can expense

half of their

purchases of equipment. In January of 2011, all of it will have

to be ?depreciated.?

Taxes will be raised on all types of businesses. There are

literally scores of tax hikes on business that will take place.

The biggest is the loss

of the ?research and experimentation tax credit,? but there are

many, many others. Combining high marginal tax rates with the

loss of this tax

relief will cost jobs.

Tax Benefits for Education and Teaching Reduced. The deduction

for tuition and fees will not be available. Tax credits for

education will be

limited. Teachers will no longer be able to deduct classroom

expenses. Coverdell Education Savings Accounts will be cut.

Employer-provided

educational assistance is curtailed. The student loan interest

deduction will be disallowed for hundreds of thousands of

families.

Charitable Contributions from IRAs no longer allowed. Under

current law, a retired person with an IRA can contribute up to

$100,000 per year

directly to a charity from their IRA. This contribution also

counts toward an annual ?required minimum distribution.? This

ability will no longer

be there.

PDF Version Read more: http://www.atr.org/six-months-untilbr-largest-tax-hikes-a5171##ixzz0sY8waPq1;

Now your insurance is INCOME on your W2's......

One of the surprises we'll find come next year, is what follows -

- a little "surprise" that 99% of us had no idea was included in

the "new and

improved" healthcare legislation . . . the dupes, er, dopes, who

backed this administration will be astonished!

Starting in 2011, (next year folks), your W-2 tax form sent by

your employer will be increased to show the value of whatever

health insurance you

are given by the company. It does not matter if that's a private

concern or governmental body of some sort. If you're retired? So

what; your gross

will go up by the amount of insurance you get.

You will be required to pay taxes on a large sum of money that you

have never seen. Take your tax form you just finished and see

what $15,000 or

$20,000 additional gross does to your tax debt. That's what

you'll pay next year. For many, it also puts you into a new

higher bracket so it's

even worse.

This is how the government is going to buy insurance for the15%

that don't have insurance and it's only part of the tax

increases.

Not believing this??? Here is a research of the summaries.....

On page 25 of 29: TITLE IX REVENUE PROVISIONS- SUBTITLE A: REVENUE

OFFSET PROVISIONS-(sec. 9001, as modified by sec. 10901) Sec.9002

"requires

employers to include in the W-2 form of each employee the

aggregate cost of applicable employer sponsored group health

coverage that is excludable

from the employees gross income."

Joan Pryde is the senior tax editor for the Kiplinger letters. Go

to Kiplingers and read about 13 tax changes that could affect you.

Number 3 is

what is above.

Why am I sending you this? The same reason I hope you forward

this to every single person in your address book.

People have the right to know the truth because an election is

coming in November.

NO-vember is our opportunity to make REAL changes! Get eveyone

out to vote -- and NEVER-RE-ELECT ANYONE!

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