Nope...veto.
Tax rates stay the same through 2008. Estate and capital gains (and perhaps dividends) go up after 2010.
But I think Pelosi et al, will just not bring the subject up and let it expire. They don't have the guts to bring it to a vote and vote against it.
Tax cuts are history. The dimos dont have to make a move to raise taxes, all they gotta do is let them run out.
Yes. The Bush Taxcuts will start expiring. They will never be renewed by a Democrat Congress. Start digging deep people. EVEN if the President vetos everything, your taxes are going up.
I'm just compiling an email to my brother (his political beliefs have changed since marrying a New Jersey liberal) and would like to mention the tax changes that will occur because the breaks were not permanent.
Marriage penalty back
College tax credit gone
Death tax (2010)
What else?
I found this on Heritage's website. It's from last year, so I don't know what changed this year. But it's a good place to start:
• Bonus Depreciation: This provision, which changes depreciation schedules for businesses in a way that encourages investment, expired on January 1, 2005.
• Alternative Minimum Tax: Exemptions will decrease by $6,500 per filer on January 1, 2006.
• Small Business Expensing: On January 1, 2008, the maximum amount that a business may deduct will fall from $100,000 to $25,000, which will not be indexed to inflation. Also on that date, the cap for the value of qualifying property will shrink from $400,000 to $200,000, making it more difficult for small businesses to take advantage of this deduction.
• Capital Gains: Rates will rise to 10 or 20 percent, depending upon income, on January 1, 2009.
• Child Credit: This credit will shrink from $1,000 to $500 per child on January 1, 2011.
• The 10-Percent Bracket: This bracket will be eliminated on January 1, 2011, raising the income tax burden of many workers by 5 percentage points.
• The 15-Percent Bracket for Joint Filers: On January 1, 2011, the upper limit of this bracket will shrink from 200 to 167 percent of the upper limit for single filers, creating a marriage penalty.
• Standard Deduction for Joint Filers: On January 1, 2011, this will shrink from 200 to 167 percent of the standard deduction for single filers, creating a marriage penalty.
• The Estate Tax: The top rate for this tax will increase to 60 percent on January 1, 2011, and the value of an estate exempt from taxation will shrink to $1 million, which is less than it is today.
• The Income Tax: Rates will increase between 3 and 4.5 percentage points in each bracket on January 1, 2011.
• Dividends: Rates will rise to match standard income tax rates on January 1, 2009.