Tax Increases for 2013

With the tax increases to support Obamacare and the expiration of the Bush/Obama tax cuts, unless the world ends in December, we will be hit hard with new taxes on January 1, 2013.

Taxes that will happen unless Congress acts:

Five of the eighteen tax increases in Obamacare will begin next year.
The health care 2.9% surtax on investment income starts
Medicare tax increase.
The death tax will rise.
The Payroll Tax Cut will expire.
The Alternative Minimum Tax Patch will expire.
Tax cuts from the 2009 Stimulus will expire.
100% expensing of business purchases will end.

Bush/Obama Tax Cuts Expiring:

The child tax credit will be reduced from $1000 to $500.
The 10% income tax rate will expire.
Dividend tax rate will increase.
Marriage penalty reduction will expire.
Employer-provided child care credit will be reduced.
Adoption tax credit will be reduced.
Dependent care tax credit will be reduced.
Tax on bonds for school construction will be increased.
Tax on scholarships will be reinstated.
Student loan interest deduction will decrease.
Employer provided education assistance will decrease.
Highest rate going from 35% to 42%.
The 25% bracket will increase to 28%.
The 33% bracket will increase to 36%.

Proposed New Taxes

Capping itemized deductions.
Capital gains tax from 15% to 20%.
Millionaire tax.
Spectrum Tax - a tax on mobile phone and other devices users.
Capital gains earned by managers of investing partnerships increased to their ordinary income rate.
Airplane Tax Hike - depreciable life of aircraft to be extended from 7 to 12 years.
Ten additional tax increases on selected energy companies.