Tax Rates now and 2011

[Gearhead Jim]

In another thread, someone mentioned that the income tax rates are supposed to go back up starting for 2011.
Obviously, a lot can happen between now and then. But can someone post the current AGI's/rates, and what the AGI's/rates are supposed to revert to in 2011?
And feel free to guess what congress will actually do with the situation.
Thanks.

[Martha]

This is why all the talk over the past few years from Bush on making the tax cuts permanent.

A number of tax cuts in the last few years are set to expire. One we here about a lot is the estate tax. Also, the cuts on rates for dividends and long term gains will disappear so you will pay 20% on LTGs rather than 15% or less and it could be much higher on dividends. The lower 10% bracket will disappear and the maximum tax rate will increase back to what it was a few years ago, which, IIRC, was somewhere around 39%.

Who knows what will actually happen. I have opposed making the tax cuts permanent unless we resolve spending issues. There are also tax cuts I have long opposed, such as the estate tax cuts.

[tryan]

I view taxation the same way I view drug problems. Is the "solution" treating SUPPLY or DEMAND? Cutting taxes is a supply side solution.

Here's a few more taxes we can cut/eliminate:

Accounts Receivable Tax
Building Permit Tax
CDL license Tax
Cigarette Tax
Corporate Income Tax
Dog License Tax
Federal Income Tax
Federal Unemployment Tax (FUTA)
Fishing License Tax
Food License Tax,
Fuel permit tax
Federal gasoline Tax (42 cents per gallon)
Hunting License Tax
Inheritance Tax
Interest expense
Inventory tax
IRS Interest Charges IRS Penalties (tax on top of tax)
Liquor Tax
Luxury Taxes
Marriage License Tax
Medicare Tax
Property Tax
Real Estate Tax
Service charge taxes
Social Security Tax
Road usage taxes
Sales Tax
Recreational Vehicle Tax
School Tax
State Income Tax
State Unemployment Tax

(SUTA)
Telephone federal excise tax
Telephone federal universal service fee tax
Telephone federal, state and local surcharge taxes
Telephone minimum usage surcharge tax
Telephone recurring and non-recurring charges tax
Telephone state and local tax
Telephone usage charge tax
Utility Taxes
Vehicle License Registration Tax
Vehicle Sales Tax
Watercraft registration Tax
Well Permit Tax
Workers Compensation Tax

[uncledrz]

Tryan
Cutting the taxes is easy.

Tell us what spending you'd cut?

Tio z

[tryan]

I would start with a hiring freeze at the federal level. Attrition would begin to reduce federal payroles. Make them do more with less.

Next we ask the real tough questions of some of the vast bureaucracy: What have you done for me lately?

Do we really need a Department of Energy in a free market economy?

Is the Department of Education completely duplicated at the state level?

Or are these - and many others - simply empire building exercies of long gone administrations.

[retire@40]

Originally Posted by tryan

...Here's a few more taxes we can cut/eliminate:

Accounts Receivable Tax...

What is an Accounts Receivable Tax? I never heard of it and don't know anyone who pays it.

[lazyday]

Not certain, but think LT cap gains rates are set to go to 20% or 10% depending on bracket, and for 5 year gains, 18% or 8%.

[tryan]

What is an Accounts Receivable Tax? I never heard of it and don't know anyone who pays it.

Wow , that implies you've heard of all the others?

I think it's capitol gains.

[retire@40]

Originally Posted by tryan

I think it's capitol gains.

You think it's capital gains? I think there's no such thing as an Accounts Receivable Tax.

I also don't know how "Interest Expense" qualifies as a tax either, now that I look at the rest of the list.

[tryan]

Ok so we pull those 2 ... there's still 42 too many.

Lots of usage fees are not even considered e.g. vehicle excise tax.

I would also consider any income to the government a tax e.g. lotteries and traffic tickets included.

[retire@40]

Originally Posted by tryan

...I would also consider any income to the government a tax e.g. lotteries and traffic tickets included.

They are called "Revenue Enhancers."

[Patrick]

Originally Posted by tryan

I would also consider any income to the government a tax e.g. lotteries and traffic tickets included.

A lottery is not a tax. You don't have to play.

[retire@40]

Originally Posted by Patrick

A lottery is not a tax. You don't have to play.

Neither is a traffic ticket. You don't have to drive. Or if you do drive, you don't have to drive illegally.

[Gearhead Jim]

Getting back to the original topic...
Can anyone post the existing tax rates/AGI vs what they are supposed to revert to in 2011?

[macdaddy]

I don't know about 2011 but I'm sure by 2020 the top bracket will be 49.99%.

[saluki9]

Originally Posted by Gearhead Jim

Getting back to the original topic...
Can anyone post the existing tax rates/AGI vs what they are supposed to revert to in 2011?

Married Filing Jointly (Before Bush Tax cuts)




$0 $43,050 ------- 15% $0
43,050 104,050 $6,457.50 + 28% 43,050
104,050 158,550 23,537.50 + 31% 104,050
158,550 283,150 40,432.00 + 36% 158,550
283,150 ------- 85,288.50 + 39.6% 283,150

[Gearhead Jim]

Thanks. Those differences are indeed significant.

[bosco]

Originally Posted by Patrick

A lottery is not a tax. You don't have to play.

IMO, a lottery is a tax on people who do not understand basic mathematics.

[FIRE'd@51]

Originally Posted by bosco

IMO, a lottery is a tax on people who do not understand basic mathematics.

Or maybe lotteries simply prove people love skewness in their return distributions!

[FIRE'd@51]

Originally Posted by saluki9

Married Filing Jointly (Before Bush Tax cuts)


$0 $43,050 ------- 15% $0
43,050 104,050 $6,457.50 + 28% 43,050
104,050 158,550 23,537.50 + 31% 104,050
158,550 283,150 40,432.00 + 36% 158,550
283,150 ------- 85,288.50 + 39.6% 283,150

I believe these brackets would still be adjusted for inflation since 1999, so they would all be higher in 2011 dollars, even if the Bush tax cuts were not extended.