Monday, January 04, 2010

The Looming Tax Increases (Bumped)

Spotted at Feed Your ADHD....

Get ready for the tax increases in 2010 (from The Heritage Foundation):
While millions of Americans are more than ready to put 2009 behind them, they should know that Congress failed to reauthorize dozens of tax breaks for individuals and businesses before the Members scurried home for the Holidays. These “expiring provisions” affect every American in one way or another as individuals or businesses. By allowing them to lapse, Congress has enacted tax increases at time when these taxpayers can least afford it.
Among the items allowed to expire at midnight on December 31, 2009:
* Deduction of state and local general sales taxes (section 164) (Personal Tax Incentives)

* Additional standard deduction, up to $500 for individuals and $1,000 for couples, for state and local property taxes (section 63) (Personal Tax Incentives)

* Research tax credit and alternative simplified credit (section 41) (General Business Tax Incentives)

* New markets tax credit (section 45D) (Community Assistance Provisions)

* Empowerment zone incentives (sections 1391 and 1202) (Community Assistance Provisions)

* Renewal community tax incentives (sections 1400E, 1400F, 1400I, and 1400J) (Community Assistance Provisions)

* District of Columbia Investment Incentives (sections 1400, 1400A, 1400B, and 1400C) (Community Assistance Provisions)

* Net disaster loss designation and $500 limit per casualty for personal casualty losses attributed to federally declared natural disasters (section 165) (General Disaster Relief Provisions)

* Expensing for qualified disaster expenses (section 198A) (General Disaster Relief Provisions)

* Biodiesel and renewable diesel incentives (section 40A) (Energy Incentives)

* Alternative motor vehicle credit for heavy hybrids (section 30B) (Energy Incentives)

Although the House has acted and passed its version of the Tax Extenders Act of 2009, the Senate failed to act on similar legislation, as a result the following additional key tax provisions will expire:

* Increased exemption levels for the individual alternative minimum tax (section 55) and personal tax credits allowed against the AMT (section 26)

* Exclusion of unemployment compensation benefits from gross income (section 85)

* Alternative fuel mixture tax credit (section 6426(e))

* Reduced estimated tax payments for small businesses (section 6654(d)(1)(D))
BHO's campaign promises about no tax increases for most Americans were lies, and those lies are going to hit each and every one of us in the pocketbook.

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posted by Always On Watch @ 1/04/2010 02:41:00 PM