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Groups who advocated for the IRS to prepare tax returns sure look foolish these days: http://t.co/oKvpIofu7Y
May 13, 2013 06:30 PM
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"We don't need the federal government mandating additional taxes..." -@MarshaBlackburn on MFA: http://t.co/lAuLJtr5t3 #NoNetTax
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Health insurers and businesses are already feeling the iron-clad grip of regulations in #Obamacare: http://t.co/J6dfnKqFYZ
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Virginia Governor Bob McDonnell Signs Largest Tax Hike in Virginia History into Law http://t.co/Qd6KOFfaPv
May 13, 2013 03:46 PM
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Under #Obamacare, mothers have had a tougher time purchasing non-prescription, over-the-counter medicine: http://t.co/dJuaGAT9LE
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May 13, 2013 01:30 PM
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.@GroverNorquist on MFA: "[The Senate] didn't ask all of the questions that needed to be asked": http://t.co/wXfkIR2Ca9 #NoNetTax
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May 13, 2013 12:30 PM
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Conservative and Free Market Groups Applaud Move to Delay a Vote on Gina McCarthy: http://t.co/lNQYmJAB12 #EPA
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The #Obamacare train wreck will derail the American economy: http://t.co/opFkyf1guJ
May 13, 2013 11:30 AM
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Income Tax Sucker Punch Just Around the Corner in 2013
This brief by the Americans for Tax Reform Foundation analyzes the harmful effects of expiring income tax relief in 2013.
This content is provided by the Americans for Tax Reform Foundation.
Current Law & Expiration
The current income tax rate structure was put in place by Title I of the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA). EGTRRA is scheduled to sunset on January 1, 2013. The rate structure will then revert to its much higher, pre-2001 levels.
|
Taxable Income |
2012 Marginal Tax Rate |
2013 Marginal Tax Rate |
|
Up to $8,700 for single filers Up to $17,400 for joint filers |
10% |
15% |
|
Between $8,700 and $35,350 for single filers Between $17,500 and $70,700 for joint filers |
15% |
15% |
|
Between $35,350 and $85,650 for single filers Between $70,700 and $142,700 for joint filers |
25% |
28% |
|
Between $85,650 and $178,650 for single filers Between $142,700 and $217,450 for joint filers |
28% |
31% |
|
Between $178,650 and $388,350 for single filers Between $217,450 and $388,350 for joint filers |
33% |
36% |
|
Over $388,350 for both single and joint filers |
35% |
39.5% |
Source: House Ways & Means Committee
ATRF Analysis
If Title I is allowed to expire in 2013, marginal income tax rates will increase for all taxpayers by up to one third. The largest increase will occur in the lowest tax bracket, which will adversely affect low-income earners. In fact, 60% of the 2001/2003 tax relief went to middle- and low-income earners.
A key principle of taxation is that if an activity is taxed, individuals will do less of it. Allowing income tax hikes, then, will discourage and cheapen the value of activities that earn income—namely, work and productivity. This would have a significant contractionary effect on the U.S. economy at a time when Americans can least afford it.
The individual income rate hikes would hurt small business as well, because 95% of all U.S. non-farm businesses are structured so that they file taxes through their owner at individual income tax rates. Hiking individual income tax rates, then, will result in fewer jobs and more expensive goods, as small business owners reach deeper into their pockets to pay the tax man.
2013 Cost to Taxpayers
Office of Management and Budget: $120 billion
This content is provided by the Americans for Tax Reform Foundation. To donate to ATRF, click here.
