As of January 1, 2011........

[FrenchieCat]

With no deal, the results on the Federal tax regulations will immediately be as follows:


Top tax bracket goes up for top tax bracket from 35% to 39.5%, which is a 13% increase.

The 33% bracket rises to 36%, which is a 9% increase

The 28% bracket rises to 31%, which is a 11% increase

The 25% bracket rises to 28%, which is a 12% increase

The bottom tax rate for those in the 10% tax bracket goes up to 15%, which is a 50% increase.

2011 Tax Bracket table

-------------Married Filing ----------Jointly Single
15% Bracket $0 – $70,040 ----------$0 – $35,020
28% Bracket $70,040 – $141,419 ----$35,020 – $84,872
31% Bracket $141,419 – $215,528 ---$84,872 – $177,006
36% Bracket $215,528 – $384,860--- $177,006 – $384,860
39.6% Bracket Over $384,860 --------Over $384,860
http://www.fivecentnickel.com/2010/02/15/2011-federal-income-tax-brackets-irs-income-tax-rates/

Additional Changes in the following Tax credit provisions and other write offs,

The child tax credit will be cut in half from $1000 to $500 per child. For those filing jointly, the tax credit begins to phase out at $110,000 (AGI) and for taxpayers completing a single tax return at $75,000.

The standard deduction will no longer be doubled for married couples relative to the single level.

The dependent care tax credit will be cut.

Earned Income Tax Credit Reduced for Some – This is a tax credit for low-income working families with earned income less than or equal to $48,362. The income limits on this credit vary by your filing status and by the number of children you claim as dependents. In 2011, EITC to decrease for families with three or more children with higher income phase outs eliminated.

Adoption tax credits will be cut.

Making Work Pay Tax Credit eliminated – tax credit for 6.2% of earned income with a maximum credit of $400 for single filers and $800 for married couples.

The deduction for tuition and fees will not be available.

Hope Tax Credit Changed – This tax credit goes back to being only applicable for the first 2 years of college and the limit goes from being $2500 to $1800.
Coverdell Education Savings Accounts will be cut.

Teachers can no longer deduct classroom expenses.

Student Loan Interest Deduction Limit Changes – For 2011, individuals or married couples can only deduct interest from the first 60 months of the repayment term.

Credit for principal residence homes making changes to housing insulation, windows, doors, HVAC equipment, water heaters and more expires.

The AMT will be computed on 28 million families, up from 4 million in 2010.

Mortgage Insurance Premium Deduction expires - taxpayers will no longer be allowed to deduct mortgage insurance premiums from their tax returns.

Additional provisions expired listed here.....
http://weakonomics.com/2010/07/28/details-about-tax-changes-in-2011-that-can-help-you-plan-accordingly/


Cost breakdown for the 2 year extension in the Obama Compromise.





The American Tax Reform Tea Party Website has a clock ticking down the days,
hours and minutes till January 1st.

It looks like this:


You can see it here: http://atr.org/update-days-untilbr-largest-tax-hikes-a5418


in conclusion......

The True Culprits

Thursday, 09 December 2010

Over the course of the last several weeks, we have diligently watched as our President, Barack Obama, and the Democratic Party withstood filibustering and stonewalling from the right. Conducting hearings on the weekend, and doing everything they conceivably could to assist the poor and middle-class, their repeated attempts at compromise were met with fierce resistance and an utter disregard for the majority of this nation by the Republicans. And now, after holding the American people hostage as our President so rightfully pointed out, these self-aggrandizing politicians are sitting back and allowing Obama to be the scapegoat for all that ails us. It’s time we call them out.

“I think it’s tempting to negotiate with hostage-takers, unless the hostage gets harmed,” explained President Obama at a press conference on Tuesday following a potential deal on tax cuts. “Then people will question the wisdom of that strategy. In this case, the hostage was the American people, and I was not willing to see them get harmed.”

In a rare Senate session on Saturday, December 4th, Republicans first shot down a measure to grant tax cuts for those making $250,000 or less. Instead of assisting struggling middle-class and poor families during these turbulent economic times, the GOP effectively shut the door on a quick maneuver to help those most in need. Senate Democrats then proposed an extension of tax cuts for all those making a million dollars or less – in essence taking a significant step towards meeting their Republican counterparts halfway. Again, this measure was voted down.

Last week, we also witnessed the failure of Republican leaders to pass an extension of unemployment benefits for the long-term unemployed. The result: some 600,000 American workers immediately saw an end to the money they rely on for mere survival, and a total 2 million were set to lose theirs by the end of the month. After paying into unemployment through years of work, many of these individuals would soon find it difficult to simply put food on the table. At a time when families gather for the Holidays, Republicans deemed it appropriate to take away these people’s livelihood all for the sake of garnering tax cuts for their wealthy friends and associates.

Politics can often be a dirty game. Many a times, people act and vote in favor of their own vested interests. But when you allow the well being and sustainability of millions of our citizenry to hang in the balance, you must be held accountable. And we, the people, must never forget that these Republican leaders were ready, willing and only eager to allow tax cuts for everyone to expire, and allow 2 million to lose their unemployment checks. We must never be shy in calling out these elected representatives for who they are, and for whom they serve. And we must always bear in mind that they were prepped to sacrifice everything in order to benefit the wealthy and progress their own personal agendas.

President Obama was effectively caught between a rock and a hard place. Yes, he could have remained steadfast on his insistence of a tax cut for the middle-class only, but at what cost? Unlike those on the right, he could not in good conscience gamble on the lives of innocents suffering during these difficult and unpredictable times. And for that simple notion, we should all thank him – not attack him.

Rev. Al Sharpton
http://nationalactionnetwork.net/media-info/revs-written-opinions/515-the-true-culprits.html

[nofurylike]

1. great, Great OP, FrenchieCat!! thank you for doing all that work

for us all!!

OMG, if people would only THINK!!!
it is so clear.

[nofurylike]

2. "we should all thank him – not attack him." absolutely. nt

[madamesilverspurs]

3. Your hard work is appreciated!

I sent this OP to just about everyone on my email list.

Thank you!

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