What Happens if the Bush Tax Cuts Expire

Fox News ^ | 09/20/2010 | Gerri Willis

[Responsibility2nd]

Walk down any street in America and you will see one of two kinds of people: people who pay federal income taxes and those who don't.

Nearly 50% of us don't pay income taxes either because we don't make enough to owe taxes or because we score so many deductions and credits that it wipes out our bill. That means everybody else has to pick up the tab.

When George W. Bush's tax cuts expire at midnight on Dec. 31 this year, those who pay will owe even more. Bush's 10% tax bracket is replaced by a 15% bracket for the lowest wage earners. For those at the top, the income tax rate resets to nearly 40% from 35%.

Little-noticed provisions that also expire with the tax cuts will push that top rate through the 40% threshold.

Here's what it could cost you:

[Hoodat]

She didn’t include the change in Health Flexible Spending Accounts. The max will go from $5K to $2.5K. That’s an added 2,500 in income for those who max out on medical spending.

This is known as the 'Special Needs Kids Tax'. As the father of a really special kid, I rely heavily on my FSA. Next year, $700 that would normally have gone towards my son's expenses will now go to the federal government instead. My, aren't Democrats compassionate?

[Gator113]

I will quit buying ANYTHING that isn’t required for survival.

My daughter will likely layoff a 1/3rd of her employees.... she presently has 16 full time employees and two part time.

I’ll fashion a Voodoo doll in his likeness and stick needles it it’s aSS each morning and every night.

I wish he would simply fall off of the planet. Obama is the absolute worst thing to ever happen to our country.

[IAGeezer912]

I would like for the Bush tax cuts to go out of existance on 01Jan2011 so EVERYONE is reminded just how beneficial his tax cuts were. Then the next Congress can immediately re-enact the Bush tax cuts for everyone 3 weeks later.

I would bet that a presidential veto would be over-ridden or impeachment proceedings begun.

[DallasDeb]

I have my own needs. This year, our insurance deductible was raised to $2,000, with an additional $4,000 out of pocket max. And that doesn’t include expenses for prescription. The co-pay on them was raised by $5, $30, and $70, depending on the tier. This year, I went through my $5K by May. Usually it last through September.