Monday, April 16, 2007

Senator Thune on Potential Tax Increases

McQ over at QandO points out the impact of letting the Bush tax cuts expire, which it appears that the Democrats are proposing. The highlights (or if you're like me, I'd say they are the low lights)

"The marriage penalty returns. Average impact? About $1,360 per married couple.

The standard deduction ($3,300) will be cut to zero for some depending on their income.

If you're a senior living on dividend income, your tax is going to go from 15% to 39.6%.
And if you also are living on some capital gain income, that tax goes from 15% to 20%.

20 million more families will be forced on the Alternative Minimum Tax.

If you use the credit for Child and Dependent Care, that is being slashed by 31%.

The Child Tax Credit is being cut from $1,000 to $500 (these, btw, are credits many of our lower ranking military use).

Then there's the Tax Rate Schedule.The 10% bracket, that used by many low income families, is gone. Now, at a minimum, everyone is in the next tax bracket. And that bracket goes from 25% to 28%. The 28% bracket rises to 31%, the 33% bracket goes to 36% and those in the present 35% bracket see their taxes increased to 39.6%."

Thune and his staff computes that the average SD family will see a tax increase of $2,596. Ouch.
And this is what the majority party wants for you and me and everyone in the country.

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