We all need to acknowledge that the constant scandalmongering, the attacks on the middle class, the attacks on women are just one of the ways that Congress (mainly GOP & Tea Party politicians) are refusing to fulfill their #1 responsibility as outlined by the U.S. Constitution. For months they have refused to follow the proper democratic process and bring the bill to the floor to go through the budgetary committee. This is why Boehner and the GOP refuse to pass the Budget that was put out by the President. They are protecting the wealthy and insisting on cuts that hurt working Americans. These are excerpts straight from the Budget the link is listed at the end if you want to look through it. No more lies GOP! They refuse to pay their fair share! Upper-Income Tax Provisions Sunset the Bush Tax Cuts for Those with Income in Excess of $250,000 ($200,000 if Single) Reinstate the limitation on itemized deductions for upper-income taxpayers.—Prior to the enactment of the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), Public Law 107-16, the deduction for otherwise allowable itemized deductions (other than medical expenses, investment interest, theft and casu¬alty losses, and wagering losses) was reduced by three percent of AGI in excess of certain thresholds, but not by more than 80 percent of the otherwise allowable amount. EGTRRA phased in the repeal of the limitation on item¬ ized deductions over a five-year period, 2006 through 2010. The repeal of the limitation on itemized deductions was extended for two years through 2012 under the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. The Administration’s adjusted baseline assumes that the limitation on itemized deduc¬tions is permanently repealed. The Administration pro¬poses to reinstate the limitations on itemized deductions for married taxpayers filing joint returns with income over $250,000 (at 2009 levels) and for single taxpayers with income over $200,000 (at 2009 levels), effective for taxable years beginning after December 31, 2012. Reinstate the personal exemption phaseout for upper-income taxpayers.—Prior to the enactment of EGTRRA, the deduction for personal exemptions for the taxpayer and his or her dependents was phased out for taxpayers with AGI in excess of certain thresholds. EGTRRA phased in the repeal of the phaseout of per¬sonal exemptions over a five-year period, 2006 through 2010. The repeal of the phaseout of personal exemptions was extended for two years through 2012 under the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. The Administration’s adjusted baseline assumes that the phaseout of personal exemp¬tions is permanently repealed. The Administration pro¬poses to reinstate the phaseout of personal exemptions for married taxpayers filing joint returns with income over $250,000 (at 2009 levels) and for single taxpayers with in¬come over $200,000 (at 2009 levels), effective for taxable years beginning after December 31, 2012. Reinstate the 36-percent and 39.6-percent rates for upper-income taxpayers.—EGTRRA split the 15-percent statutory individual income tax rate bracket of prior law into two tax rate brackets of 10 and 15 per¬cent, and replaced the four remaining statutory individ¬ual income tax rate brackets of 28, 31, 36 and 39.6 per¬cent with statutory tax rate brackets of 25, 28, 33, and 35 percent. These tax rate brackets provided in EGTRRA, which were scheduled to expire on December 31, 2010, were extended through December 31, 2012, under the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. The Administration’s adjusted baseline assumes that these tax rate changes are made permanent. The Administration proposes to replace part of the 33-percent tax rate bracket and all of the 35-per¬cent tax rate bracket with the prior law tax rate brackets of 36 and 39.6 percent. These rate increases would ap¬ply to married taxpayers filing a joint return with income over $250,000 (at 2009 levels) and to single taxpayers with income over $200,000 (at 2009 levels). Tax qualified dividends as ordinary income for upper-income taxpayers.—Under the Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA), Public Law 108-27, the maximum tax rate on qualified dividends received by an individual shareholder was temporarily re¬duced to 15 percent for taxpayers in individual income tax rate brackets above 15 percent and to 5 percent (zero be¬ginning in 2008) for lower-income taxpayers. Under prior law, dividends were taxed as ordinary income at rates of 15 percent to 39.6 percent. The reduced rates provided under JGTRRA were extended for two years, through December 31, 2012, under the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. The Administration’s adjusted baseline assumes that these qualified dividend rate reductions are made per¬manent. The Administration proposes to tax qualified dividends at ordinary income tax rates for married tax-payers filing a joint return with income over $250,000 (at 2009 levels) and for single taxpayers with income over $200,000 (at 2009 levels). All other taxpayers would be taxed at the rates in effect in 2012. The proposal would be effective for dividends received after December 31, 2012. Tax net long-term capital gains at a 20-percent rate for upper-income taxpayers.—Under JGTRRA, the maximum tax rate on net capital gains received by an individual shareholder was temporarily reduced to 15 percent for taxpayers in individual income tax rate brack¬ets above 15 percent and to 5 percent (zero beginning in 2008) for lower-income taxpayers. Under prior law, the maximum tax rate on capital gains was generally 20 per¬cent (18 percent for assets held over five years). The re¬duced rates provided under JGTRRA were extended for two years, through December 31, 2012, under the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. The Administration’s adjusted baseline assumes that these capital gains tax rate reduc¬tions are made permanent. The Administration proposes to tax net capital gains at a 20-percent rate for married taxpayers filing a joint return with income over $250,000 (at 2009 levels) and for single taxpayers with income over $200,000 (at 2009 levels). All other taxpayers would be taxed at the rates in effect in 2012. The 18-percent capital gain rate on assets held over five years would be repealed, but special rates on gains from the recapture of deprecia¬tion on certain real estate, collectibles, and small business stock would be retained. The proposal would be effective for capital gains realized after December 31, 2012. Reduce the Value of Certain Tax Expenditures Reduce the value of certain tax expenditures.— The Administration proposes to limit the tax rate at which upper-income taxpayers can use itemized deduc¬tions and other tax preferences to reduce tax liability to a maximum of 28 percent. This limitation would affect only married taxpayers filing a joint return with income ad¬justed for these tax preferences of over $250,000 (at 2009 levels) and single taxpayers with income over $200,000 (at 2009 levels). The limit would apply to all itemized de¬ductions, tax-exempt interest, employer-sponsored health insurance, deductions and income exclusions for employ¬ee retirement contributions, and certain above-the-line deductions, effective for taxable years beginning after December 31, 2012. An excerpt from the Budget page 201. gpo.gov/fdsys/pkg/BUDGET-2013-PER/pdf/BUDGET-2013-PER.pdf
Posted on: Sat, 22 Jun 2013 20:23:35 +0000
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