This is one of the major reasons why the economy is not growing and a 
double dip recession is growing more likely next year...  I may start 
moving more into cash to buy the market dip next year...  It depends 
upon what happens with the election.


=============================================

http://www.investors.com/NewsAndAnalysis/Article/541131/201007211841/The-
Tax-Tsunami-On-The-Horizon.aspx

The Tax Tsunami On The Horizon 
 
Posted 07/21/2010 06:41 PM ET

Fiscal Policy: Many voters are looking forward to 2011, hoping a new 
Congress will put the country back on the right track. But unless 
something's done soon, the new year will also come with a raft of tax 
hikes — including a return of the death tax — that will be real killers.

Through the end of this year, the federal estate tax rate is zero — 
thanks to the package of broad-based tax cuts that President Bush pushed 
through to get the economy going earlier in the decade.

But as of midnight Dec. 31, the death tax returns — at a rate of 55% on 
estates of $1 million or more. The effect this will have on hospital 
life-support systems is already a matter of conjecture.

Resurrection of the death tax, however, isn't the only tax problem that 
will be ushered in Jan. 1. Many other cuts from the Bush administration 
are set to disappear and a new set of taxes will materialize. And it's 
not just the rich who will pay.

The lowest bracket for the personal income tax, for instance, moves up 
50% — to 15% from 10%. The next lowest bracket — 25% — will rise to 28%, 
and the old 28% bracket will be 31%. At the higher end, the 33% bracket 
is pushed to 36% and the 35% bracket becomes 39.6%.

But the damage doesn't stop there.

The marriage penalty also makes a comeback, and the capital gains tax 
will jump 33% — to 20% from 15%. The tax on dividends will go all the 
way from 15% to 39.6% — a 164% increase.

Both the cap-gains and dividend taxes will go up further in 2013 as the 
health care reform adds a 3.8% Medicare levy for individuals making more 
than $200,000 a year and joint filers making more than $250,000. Other 
tax hikes include: halving the child tax credit to $500 from $1,000 and 
fixing the standard deduction for couples at the same level as it is for 
single filers.

Letting the Bush cuts expire will cost taxpayers $115 billion next year 
alone, according to the Congressional Budget Office, and $2.6 trillion 
through 2020.

But even more tax headaches lie ahead. This "second wave" of hikes, as 
Americans for Tax Reform puts it, are designed to pay for ObamaCare and 
include:

The Medicine Cabinet Tax. Americans, says ATR, "will no longer be able 
to use health savings account, flexible spending account, or health 
reimbursement pretax dollars to purchase nonprescription, over-the-
counter medicines (except insulin)."

CMPQwk 1.42-21 9999 
Carbon Dioxide makes up just 390 parts per million of atmosphere ....

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