Tax Increases

In December 2010, the tax cuts will expire unless Congress takes action.  Should tax cuts be allowed to expire to pay down the national debt, or do people need these tax cuts now more than ever?

*  Individual Tax Rates - tax brackets will increase from 3 to 5 percent

*  Marriage Tax Penalty - marriage tax penalty will be reinstated

*  Child Tax Credit - will reduce the per-child tax credit by $500

*  Estate Tax - taxes on estates could be increased up to 55 percent

*  Capital Gains - will increase from the current 15 percent

*  Equipment Deduction - will decrease from $250,000 to $25,000

The new healthcare law, the Patient Protection and Affordable Care Act (PPACA), includes a provision that requires businesses to file 1099 tax returns in 2012 for many purchases.  It's bad news for all businesses, especially smaller ones.  The passage of the Small Business Paperwork Reduction Act and an amendment expected to be offered by Senator Mike Johanns to H.R. 5297, the Small Business Jobs and Credit Act of 2010, would repeal this onerous burden on businesses. 

Radio Script 1: 60 Seconds
Little Girl: Hey Grandpa. I’ve decided what I want to be when I grow up.
Grandpa: What’s that little lady?

Little Girl: I want to be a rancher right here—just like you!

Grandpa: That’s sweet dear. But I don’t think that’s going to be possible.

Little Girl: Why not Grandpa?

Grandpa: Well, because Congress is planning on reinstating the death tax so when I’m gone the family’s going to have to sell this ranch just to pay uncle Sam.

Little Girl: Why would they do that?

Grandpa: Because some people in Congress think ol’ Grampa’s a little too rich and they think our family should give more than half of what we have to the Government when I pass on.

Little Girl: That’s not fair!

Grandpa: No sweetie--it’s not.

VO: Congress is planning to reinstate the Death Tax in 2011. This will make it harder for generations of Montanans to pass family property and businesses on to their children. For more information on the upcoming tax hikes, go to Heritage dot org.

VO: Paid for by the Heritage Foundation.

 

Above script and audio files below provided by:

Robert Gordon
Senior Advisor for Strategic Outreach
The Heritage Foundation
214 Massachusetts Avenue, NE
Washington, DC 20002
202-608-6072
heritage.org