Some real "change" is coming to your tax return, though. Remember Obama's promises that Americans who earn less than $250,000 would not see their taxes increased? He pledged this numerous times:
Candidate Barack Obama, Sept. 12, 2008:
"I can make a firm pledge. Under my plan, no family making less than $250,000 a year will see any form of tax increase. Not your income tax, not your payroll tax, not your capital gains taxes, not any of your taxes."
President Barack Obama, Feb. 24, 2009:
"In order to save our children from a future of debt, we will also end the tax breaks for the wealthiest 2% of Americans. But let me perfectly clear, because I know you'll hear the same old claims that rolling back these tax breaks means a massive tax increase on the American people: if your family earns less than $250,000 a year, you will not see your taxes increased a single dime. I repeat: not one single dime."
Well, guess what? Obama lied. He lied big-time. The bailouts, the "stimulus," the nationalization of much of the American auto industry as well as the student-loan program, and the endless new spending -- it's all gotta be financed somehow. And starting on January 1, 2011, we'll all pay. And that includes you.
Investors Business Daily has the grim details. And if you think only "the rich" are gonna get hit, you're in for some very rude surprises.
The lowest bracket for the personal income tax, for instance, moves up 50% — to 15% from 10%. The next lowest bracket — 25% — will rise to 28%, and the old 28% bracket will be 31%. At the higher end, the 33% bracket is pushed to 36% and the 35% bracket becomes 39.6%.
Are you married filing jointly?
The marriage penalty also makes a comeback...
Are you a teacher? Or a student? Got a student loan?
The deduction for tuition and fees will no longer be available and there will be limits placed on education tax credits. Teachers won't be able to deduct their classroom expenses and employer-provided educational aid will be restricted. Thousands of families will no longer be allowed to deduct student loan interest.
Do you own, or plan to sell, stock? Sorry, rich guy:
The capital gains tax will jump 33% — to 20% from 15%. The tax on dividends will go all the way from 15% to 39.6% — a 164% increase.
And here's a real doozy:
But as of midnight Dec. 31, the death tax returns — at a rate of 55% on estates of $1 million or more. The effect this will have on hospital life-support systems is already a matter of conjecture.
Read that again. Slowly. As far as I know, an "estate" includes real estate. Even with today's somewhat-deflated real-estate values, that's gonna hit a lot of people.
How's that hope and change working for ya?