"The FairTax would create the greatest transfer of power from the government to the people since the Declaration of
Independence freed us from the King of England." Radio Hall of Fame Talk Show Host Neal Boortz
The FairTax Bill H. R. 25
eliminates all personal income taxes, the marriage penalty, payroll taxes, capital gains taxes, death taxes,
the Alternative Minimum Tax, corporate taxes, and Social Security taxes. It's a retail sales tax collected only on new items which
expands the American tax base to bring in illegal immigrants and trillions of dollars now in the underground economy or hidden offshore.
It makes the true taxpayer cost of the federal government highly visible; it's simple and fair and allows every honest American to take
home far larger paychecks free of federal withholding. It unleashes our economy to grow - and best, already has 66 Senators and Congressional co-sponsors.
www.fairtax.org
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Taxes, taxes, and more taxes. Six Months to Go Until the Largest Tax Hikes in History
From Ryan Ellis on Thursday, July 1, 2010 4:15 PM
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.
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from LowerTaxesNow.org
ORANGE COUNTY IS BANKRUPT AND BROKEN 5.28.09 I have studied all 14
governments within Orange County and I cannot express in one article how broken our local governments are or how bad the financial situation truly is. Despite the fact
Orange County governments' spending nearly tripled in ten years suffocating small business, we face the prospect of massive tax and fee increases.
The financial situation compounded by a pension shortfall that will exceed $1,000,000,000 (one billion) in Orange County this
year and the endless growth in benefit costs. You the taxpayer are obligated to make up the pension shortfall even though you paid it once. I am sorry to have to say this
but it is a mathematical certainty that your taxes will go up and services will decline as more money goes out the back door of benefits. Police officers receive as much
as $30,000 per year in their pension alone, almost the annual wage of the average Orange County taxpayer.
Public safety
is an oxymoron. Central Florida now ranks with Detroit and Miami in crime partly because Orange County has no routine police patrols. They are a responsive agency only
responding to 911 calls and writing speeding tickets. Despite spending $700 million a year on public safety Orange County residents are considering ceding from the County
to start their own police forces. Taxpayers in unincorporated Orange County get almost nothing from their tax dollars so they are planning to start their own governments.
Orange County Public Schools are a mess and getting worse. My son is a senior in the Edgewater High School magnet
Program, who said recently; "I am glad I am getting out now." He had three AP teachers fired only to be replaced by less qualified (and more expensive) teachers.
Less money is going into the classroom and more is going towards administration and benefits. The unions say more money is the answer but the OCPS budget doubled in ten
years while student population only increased 15%.
The truth is Orange County government is only good at making payroll
every Friday. The focus and expertise is extracting revenue and maximizing benefits to government employees. There is no valid reason why Orange County still has 10,385
employees (not counting OCPS) when permitting has dropped 85%. There is no valid reason why the taxpayer earns half of the salary, pension and health benefits of the civil
servants they support.
While the problems are many and complex, the solution is simple. Design the government to
benefit the taxpayer. Design the government around the taxpayer. Give the taxpayer only what they want at the best possible price. Right now government is designed around
itself and self-serving. Here are some simple questions for you;
Are you happy with crime in Orange County?
Are you satisfied with our Public Education system?
Should we continue to increase the tax burden on small business?
Is it fair the taxpayer is working into
their 70s while civil servants retire in their 40s?
If your answers to these questions are "no" you want change. You
want a structural overhaul of local government. Please visit www.TaxpayerBudgetReviewBoard.org and view our final report. We studied the problem and we have the solutions.
Now comes the hard part. Getting back our government.
If you think the current group of elected officials will reform the
government they created, you may be sadly mistaken. Florida needs new leaders who are not afraid of government labor unions. We need reformers who will serve the taxpayer
not special interest groups.
LowerTaxesNow.org is seeking 1000 candidates for office in local governments across Florida.
If you are interested in running for office on a reform platform please contact Margie Patchett; Margie@LowerTaxesNow.org. If you cannot run for office consider
donating time or money to help Margie save Florida.
See you all July 4th at the Orlando Tea Party. Our event is planned
for 11 a.m. on the north steps of the Amway Arena. You deserve better. Come and get it.
Matthew Falconer
Orange County Taxpayer Budget Review Board
www.TaxpayerBudgetReviewBoard.org
www.LowerTaxesNow.org
matthew@LowerTaxesNow.org |
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Fair Tax 
www.fairtax.org
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