With the 2001 and 2003 tax cuts scheduled to expire at the end of this year, President Obama and Congress face the prospect of overseeing a historic tax increase.

If nothing is done, the $1,000 child tax credit will fall to $500, and the marriage penalty will be re-imposed. Low-income families will see their income tax rate jump five percentage points, while everyone else will see increases of three to 4.6 percentage points. Capital gains and dividends tax rates – currently 15 percent for most investors – will leap to 20 percent and 39.6 percent, respectively. The death tax, which is finally gone, will be re-imposed at a 55 percent rate.

Related Posts:

• WSJ: Stocks Rally on Death of Health-Care Reform
• Star’s McClanahan: ‘GOP needs optimistic spark, better focus’ and McCain committed ‘unbelievable blunder’ by appearing to left of Obama on tax cuts
• IBD editorial: The GOP Alternative
• Greg Mankiw — A Warning about CBO Scoring
• New Health Care House Bill Has Plenty of Taxes — Rea S. Hederman

This entry was posted on Monday, May 24th, 2010 at 12:24 pm and is filed under National. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.