If Congress Does Nothing — TAXES!

By October 4, 2010Taxation

From The Hill, “Lawmakers face daunting tax agenda when they return for lame-duck session“:

 If Congress does nothing on taxes by the end of the year:

– The estate tax will return to pre-2001 levels, socking estates worth more than $1 million with a 55 percent tax.
– The capital gains tax on most assets will jump from 15 percent to 20 percent.
– Dividends currently taxed at 15 percent will skyrocket to individual tax rates that go as high as 39.6 percent.
– The Making Work Pay tax break will cease to exist.
– The Alternative Minimum Tax will hit the middle class for 2010 tax returns.
– A slew of tax breaks that expired last year, including credits for research and development expenses and relief for college tuition, will not be available for 2010 tax returns.
– The Child Tax Credit will revert from $1,000 to $500.

Hat tip: Veronique de Rugy

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