lame duck presentation

7/30/2019 Lame Duck Presentation

1/10


2/10

Congressional Budget Office (CBO) predicts a recession

next year if Taxmageddon hits

2001-03 Bush Tax Cuts Expire ($166B)

10% rate is eliminated

15% rate will be the lowest new bracket

25% rate will jump to 28%



35% rate will jump to 39.6%

The Fiscal Cliff & Taxmageddon($495B Tax Hike)


3/10

Rate Single Filers Married Joint Filers Head of Household Filers

15% $0 to $36,250 $0 to $60,550 $0 to $48,600

28% $36,250 to $87,850 $60,550 to $146,400 $48,600 to $125,450

31% $87,850 to $183,250 $146,400 to $223,050 $125,450 to $203,150

36% $183,250 to $398,350 $223,050 to $398,350 $203,150 to $398,350

39.60% $398,350 and up $398,350 and up $398,350 and up

The Fiscal Cliff & Taxmageddon($495B Tax Hike) 2001-03 Bush Tax Cuts Expire ($166B)


4/10

The Fiscal Cliff & Taxmageddon($495B Tax Hike)

Consequences for Savings & Investment!

Capital Gains Tax (from 15% to 20%)

Dividend Tax Rate (from 15% to marginal

rate)

Social Security Payroll TaxEmployee

Contribution (Reverts from 4.2% to6.2%)

Death Tax Rate (Reverts back from 35%

to 55% rate with a $1 million exemption)


5/10

ObamaCare Tax Hikes ($23B in 2013)

Medical device tax 2.3 % excise tax on gross sales

(Already causing layoffs)

Tax Increase: $20 Billion

Medicare payroll tax

Raised from 2.9% to 3.8% Tax Increase: $86.7 Billion

Surtax on InvestmentIncome 3.8 % point surtax

Single filers >$200k Gross

income Joint filers >$250k Gross

income

Tax Increase: $123 Billion

Imposes $2,500 cap onFlexible Spending Accounts

Raises 7.5% Adjusted GrossIncome (AGI) floor onmedical expenses

deduction to 10%


6/10

Medical Device Tax = Layoffs

Sept. 14: 2,000 layoffs in

past 2 months

Nov. 1: St. Judes

announces 500 layoffs

Sony: 20% of home-based

employees

Stryker: 96 jobs cut; 1,170

more expected to global

workforce

Boston Scientific: 1,200-

1,400 layoffs + shifting

investments and workers

to China

Medtronic: 500 layoffs insummer, 500 more by

end of 2013


7/10

Sequestration

Budget Control Act of 2011

Remember the Super Committee?

Automatic cuts of $1.2 trillion, over 10 years

$109 billion in cuts set to take effect in 2013 Part of deal for raising the debt ceiling

Half Defense and half non-defense funds


8/10

Key Tax Extenders

Alternative Minimum Tax (AMT)

Doc Fix (prevents a 25% cut to Medicare physician payments)

Wind PTC


9/10

National Debt will reach its $16.4 trillion ceiling

Emergency Unemployment Compensation (EUC) and

extended benefits (EB) expire

Perm. law is 26 weeks

EUC is addl 14-27 weeks; EB is 13-20 weeks, depending on addlstate

The Non Farm Bill Farm Bill 80% is Welfare!

Expired 9/30/2012

Latest score: $949 B Internet Sales Tax

Carbon Tax???

Additional Considerations


10/10

Our Message to Congress

Congress has a great opportunity to live up

to its promises and finally cut spending.

No Tax Hikes! Everyone agrees: You dont raise taxes in a weak

economy.

NoFreeVotes.com

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