The Fiscal Cliff & Taxmageddon ($495B Tax Hike)

Congressional Budget Office (CBO) predicts a recession next year if Taxmageddon hits
2001-03 Bush Tax Cuts Expire ($166B)
10% rate is eliminated 15% rate will be the lowest new bracket 25% rate will jump to 28% 28% rate will jump to 31% 33% rate will jump to 36% 35% rate will jump to 39.6%

The Fiscal Cliff & Taxmageddon ($495B Tax Hike)

2001-03 Bush Tax Cuts Expire ($166B)
Rate 15% 28% Single Filers $0 to $36,250 $36,250 to $87,850 Married Joint Filers $0 to $60,550 $60,550 to $146,400 Head of Household Filers $0 to $48,600 $48,600 to $125,450

31%

$87,850 to $183,250

$146,400 to $223,050

$125,450 to $203,150

36%

$183,250 to $398,350

$223,050 to $398,350

$203,150 to $398,350

39.60%

$398,350 and up

$398,350 and up

$398,350 and up

The Fiscal Cliff & Taxmageddon ($495B Tax Hike)

Consequences for Savings & Investment! Capital Gains Tax (from 15% to 20%) Dividend Tax Rate (from 15% to marginal rate) Social Security Payroll Tax Employee Contribution (Reverts from 4.2% to 6.2%) Death Tax Rate (Reverts back from 35% to 55% rate with a $1 million exemption)

ObamaCare Tax Hikes ($23B in 2013)

Medical device tax
2.3 % excise tax on gross sales (Already causing layoffs) Tax Increase: $20 Billion

Medicare payroll tax

Raised from 2.9% to 3.8% Tax Increase: $86.7 Billion

Imposes $2,500 cap on Flexible Spending Accounts Raises 7.5% Adjusted Gross Income (AGI) floor on medical expenses deduction to 10%

Surtax on Investment Income

3.8 % point surtax
Single filers >$200k Gross income Joint filers >$250k Gross income

Tax Increase: $123 Billion

Medical Device Tax = Layoffs

Sept. 14: 2,000 layoffs in past 2 months Nov. 1: St. Judes announces 500 layoffs Sony: 20% of home-based employees Stryker: 96 jobs cut; 1,170 more expected to global workforce Boston Scientific: 1,2001,400 layoffs + shifting investments and workers to China Medtronic: 500 layoffs in summer, 500 more by end of 2013

Sequestration
Budget Control Act of 2011
Remember the Super Committee?

Automatic cuts of $1.2 trillion, over 10 years $109 billion in cuts set to take effect in 2013
Part of deal for raising the debt ceiling

Half Defense and half non-defense funds

Key Tax Extenders

Alternative Minimum Tax (AMT) Doc Fix (prevents a 25% cut to Medicare physician payments)

Wind PTC

Additional Considerations
National Debt will reach its $16.4 trillion ceiling Emergency Unemployment Compensation (EUC) and extended benefits (EB) expire
Perm. law is 26 weeks EUC is addl 14-27 weeks; EB is 13-20 weeks, depending on addl state

The Non Farm Bill Farm Bill 80% is Welfare!

Expired 9/30/2012 Latest score: $949 B

Internet Sales Tax Carbon Tax???

Our Message to Congress

Congress has a great opportunity to live up to its promises and finally cut spending. No Tax Hikes!
Everyone agrees: You dont raise taxes in a weak economy.

NoFreeVotes.com