Tax Increases If Congress Continues Do-Nothing Ways

The Republican Study Committee of the sitting Congress has compiled a list of taxes that are presently not being collected. These are part of the tax cuts that President Bush called for - and have worked successfully. Congress needs to act on these tax cuts, either to vote to cancel them altogether or to give them another temporary chance to benefit our economy. By taking no action, our taxes will increase.

RSC's Impending Tax Increases if Congress takes no action:

2008 - the exemptions for the Alternative Minimum Tax will decrease. 

Taxpayers will not be able to adjust their income for qualified tuition and related expenses.

Businesses will not be able to claim a tax credit for research and development.

2009 - No tax credits for some residential energy efficient property.

2011: Marginal income tax rates will increase - 35% bracket increases to 39.6%, 33% bracket increases to 36%, 25% bracket increases to 28%, 10% and 15% brackets will be at 15%. 

Capital gains rates for individuals will increase from 15% to 20%. 

Dividends will no longer be taxed at the capital gains rate for individuals and thus increase the double taxation of individuals by up to 62%.

Child tax credit will decrease from $1,000 to $500.

Inheritance tax will return with a 55% maximum rate, $1 million exemption.

Facts and figures are taken from the Republican Study Committee report as of February, 2008. 

The committee's web page:   http://www.house.gov/jct/x-l-08.pdf