[Skools Out]

Third Wave:

The Alternative Minimum Tax(AMT) 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 beheld 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 toan explosion of AMT taxpaying families-rising from 4 million lastyear to 28.5 million. These families will have to calculate theirtax burdens twice, and pay taxes at the higher level. The AMT wascreated 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.

Thiswill be cut all the way down to $25,000. Larger businesses cancurrentlyexpense 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 takeplace. The biggest is the loss of the "research and experimentation tax credit," but thereare many, many others. Combining high marginal tax rates withthe 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 creditsfor education will be limited.

Teachers will no longer be able todeduct classroom expenses.

Coverdell Education Savings Accountswill be cut.

Employer-provided educational assistance iscurtailed.

The student loan interest deduction will be disallowedfor 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.

Thiscontribution also counts toward an annual "required minimumdistribution." This ability will no longer be there.

PDF Version Read more: <http://www.atr.org/six-months-untilbr-largest-tax-hikes-a5171>; http://www.atr.org/six-months-untilbr-largest-tax-hikes-a5171#%23ixzz0sY8waPq1


And worse yet?

Now, yourinsurance will be INCOME on your W2's!

One of the surpriseswe'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 . . . thedupes, er, dopes, who backed this administration will beastonished!

Starting in 2011, (next year folks), your W-2 tax form sent byyour employer will be increased to show the value of whateverhealth insurance you are given by the company. It does notmatter if that's a private concern or governmental body ofsome sort.

If you're retired? So what... your grosswill go up by the amount of insurance you get.

You will be required to pay taxes on a large sum of money that youhave never seen. Take your tax form you just finishedand see what $15,000 or $20,000 additional gross does to yourtax debt. That's what you'll pay next year.

Formany, it also puts you into a new higher bracket so it's evenworse.

This is how the government is going to buy insurance for the15% that don'thave insurance and it's only part of the tax increases.

Not believing this??? Here is a research of thesummaries.....

On page 25 of 29: TITLE IX REVENUEPROVISIONS- SUBTITLE A: REVENUE OFFSET PROVISIONS-(sec. 9001,
as modified by sec. 10901) Sec.9002 "requires employersto include in the W-2 form of each employee the aggregate cost ofapplicable employer sponsored group health coverage that isexcludable 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 thatcould 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 iscoming in November!