New Year brings New Taxes

As the year of 2010 was ushered in with exuberance, so also were new taxes, but without the excitement. Taxes will differ this year with fewer deductions among the middle class and the benefits of yesteryear will vanish. There are now 70 new taxes on small businesses, and the middle class. These taxes and deductions include:

• Alternative minimum tax
• New home buyer’s credit will be deducted
• There are no more tax deductions for local and state taxes
• There are no more federal tax deductions for college tuition and fees
• The 50% write-off for purchase of capital for small businesses to expand is gone
• There is no longer estate tax this year, but 2011 it will go up to 55% (this poses an interesting question on death and taxes)

Bush’s enactment of tax breaks will end this year. Obama’s plan for the end of the year is to extend the Bush tax cuts for those who’s income is less than $250,000, but those who are above this income will be taxed without cuts.

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