subject: Tax 2011 and U.S. politics- Kevin Chinnock [print this page] Tax 2011 and U.STax 2011 and U.S. politics- Kevin Chinnock
Kevin Chinnock, tax service analyst and proprietor of Police Tax is of the opinion that unless and until prompt action is begun by US Congress, it's inevitable that there's bound to be some immense move towards tax increase in the coming year. That's why, this action has led many to term 2011 as the year about to experience considerable tax amplifications. Several tax cuts that were brought forth by the Congress till very recently are undeniably set for an expiry, reminds Kevin Chinnock, adding that this is a reality till such time the Congress decides to initiate a timely action for replenishing them.
It's another certainty that increase in taxes would leave their stamp on all Americans, says Kevin Chinnock. This is even truer for those Americans who actually pay their tax. However, that's only the first segment of increase. There's yet another piece of tax increase inside the sphere of healthcare reform regulations, points out Kevin Chinnock. This is all set to surely usher its presence, latest by 2019. This undeniably means the fact that US citizens who are disgruntled with the present tax scheme will only end up feeling more frustrated in the upcoming years.
Kevin Chinnock says, there are several spheres of the tax increase that are supposed to come into effect from the next year onwards. While the lowest range of personal income tax is all set to augment to 15 percent from the existing 10 percent, the next least bracket for personal income tax could swell to 28 percent from the existing 25 percent. The existing 28 percent bracket will undoubtedly amplify itself to 31 percent while the 33 percent bracket is all set to increase to 36 percent. Finally, the 35 percent bracket will definitely amplify itself to 39.6 percent, says Kevin Chinnock.
Besides the above, death tax is all set to be re-implemented in 2011. This means, as against paying 0 percent, estates that are worth US $ 1 million or higher, would be taxed at 55 percent. While tax on capital gains is set to amplify itself to 20 percent from the existing 15 percent, taxes levied on dividends are set to increase to nearly 37 percent from the current 15 percent. 2011 is also slated to witness the reintroduction of marriage penalty, explains Kevin Chinnock.
With reference to healthcare reform laws which usually constitutes more than 11 taxes, Kevin Chinnock says, that would be brought into effect in several phases. This would happen at a steady manner, all through the next ten years or so.
It's nonetheless an actuality that it's not only the US federal income tax laws that are taking its toll on the average American. There are several taxes which an American has to pay on yearly basis. This includes building permit tax, capital gains tax, accounts receivables and so on.
This in gist would be the result of Tax 2011 on an average American, says Kevin Chinnock. It's also being anticipated that the US federal government will single-handedly incur nearly $ 2 trillion on interests on national arrears by 2020, Kevin Chinnock concludes.
