How much will Obama’s new health plan cost us?
**Mr. Obama’s proposed income-based health-insurance subsidies, tax credits for tiny businesses, and expanded Medicaid eligibility would cost another .63 trillion, according to the TPC. Thus his tax rebates and health insurance subsidies alone would lift the undisclosed bill to future taxpayers by .95 trillion — roughly 5 billion a year by 2012.

The Wall Street Journal did a great article on how much Obama’s plans are going to cost us.

Just wondering if anyone knows how much it truly will cost us all??

How much will his tax plans cost the average American?
**A trillion here, a trillion there, and pretty soon you’re talking about real money. Altogether, Mr. Obama is promising at least .3 trillion of increased spending and reduced tax revenue from 2009 to 2018 — roughly an extra 0 billion a year by 2012-2013.

How is he going to pay for it?

Raising the tax rates on the salaries, dividends and capital gains of those making more than 0,000-0,000, and phasing out their exemptions and deductions, can raise only a small fraction of the amount. Even if we have a strong economy, Mr. Obama’s proposed tax hikes on the dwindling ranks of high earners would be unlikely to raise much more than billion- billion a year by 2012.

http://online.wsj.com/article/SB122480790550265061.html

Funny…I am ignorant but how do you all think he will pay for his so called reformed health plan? With his 600 million in campaign funds? I think not!
I see no backup on where you got the numbers on McCain’s health care.

Assume I owned a business:
Ronda’s Crporation,( a calendar year, accrual basis taxpayer) had the following transactions during 2006, its second year of operation.
Taxable Incom-320,000
Federal Income Tax Liability-108,050
Interest Income from tax-exempt payors-4,000
Meals and Entertainment expenses-2,000
Premiums paid on key employee life insurance-2,500
Increase in cash surrender value attributable to life insurance-600
Proceeds from key employee life insurance policy-120,000
Cash surrender value of life insurance-15,000
Excess of capital losses over capital gains-11,000
MACRS deductions-24,000
Straight 179 expense elected during 2005-90,000
Organizational expenses incurred in 2005-12,000
Dividends received from domestic corporations(less than 20% owned)-20,000

I will use the LIFO inventory method and its LIFO recapture amount increased by
9,000 during 2006. I also sold property on installent during 2005.. The property was sold for 30,000 and had as adjusted basis at sale of 22,000. During 2006 , I received a 10,000
Payment on the installment sale. I elected to amoritize its qualified organizational expenses in 2005. Please help me to compute Ronda’s Corporation current Earnings and Profit.

I want to claim 7 allowances, my payroll manager said that was an awful lot. She would not offer any "adivse" or help to determine the number. So am I crazy? Perhaps someone out here can help me out…

I am filing jointly.
I make 000 with 00 annual bonus
My wife makes 000 with no regular bonus
No significant dividends, interest, etc.

Itemized Deductions:
000 Total Mortgage Interest for the year
00 Property Tax
0 Ad Volerum Tax (My State’s "Birthday" Tax)
00 State Tax
0 Charity
0 Car Loan Interest (does this even qualify?)
00 Business Mileage (this was reimbursed, do I still use it?)
00 Health Insurance (this may be pre-taxed?)
50 My 401K contribution (this may be pre-taxed?)
50 My Wife’s 401K contribution (again might be pre-taxed?)
No Children

I am guessing whatever the magic number is that I would do that only one W4, and would claim 0 on the other form…
In response to the third reply:

I was under the impression that deductions were most definitely revelant to Allowances you would claim. Is this not true? Isn’t the point to claim enough allowances so that you are very close to what you actually owe at the end of the year after deductions and credits.

Also, I was about 99% sure the Car Loan, Mileage, 401K, and Health Insurance did not qualify. I just wanted to check.

My buddy and I own an LLC (taxed as an S-Corp). Can you deduct business expenses (such as phone) and health insurance premiums AND the standard deduction?

Also, do distributions/dividends have to be distributed equally (if we each own 50%, per say) can he take 60%, and I take 40% of distributions?

Thanks in advance.

Isn’t this the biggest rip you’ve seen??

Got this in the company mail today:

Dear Valued Employee:

As you know, President Obama has asked Congress to pass the beginning of his health insurance plan for all Americans. The starting plan will cost some billion a year, of which the President has proposed billion in higher taxes for firms doing business overseas, which is half our company’s business. He asked Congress to find the rest of the money.

Congress has said the other billion a year will come from disallowing corporate tax deductions for employee health insurance, as well as raising the general corporate income tax rate to 35%.

The company will absorb the higher taxes on our foreign operations and the tax increase to 35% even though we expect this to eliminate our currently low net income.

Our corporation pays approximately ,000 per year per single employee and ,000 per year per employee family for the health insurance coverage you presently have.

This means that Congress has decided to raise our taxes by 00 per employee with single coverage and 50 per employee with family coverage.

As you know, our company’s sales have recently fallen by more than at any previous time in our company’s history. Our company is paying no dividends to the owners and may soon be in danger of not earning the interest cost of our debts.

Accordingly, we must pass onto our employees the entire added tax that Congress will impose on your health insurance plan. It is either this, go out of business, or move operations and most jobs overseas.

Effective the first of next month, all US employees electing single coverage health insurance will have their monthly contribution increased by 175 dollars and those electing family coverage will contribute an added 262.50. For hourly employees paid every two weeks, this is .75 and 1.15 respectively.

Thank you for your continued efforts to make the company profitable,

Human Resources Department

I just received Schedule K-1 for 2007 because of new estate income. The estate CPA filled out the K-1, which has relatively small entries in: ordinary dividends, qualified dividends, other portfolio and non-business income, final year deductions atm tax adjustment and 2 entries under Other Information.. My 2007 1040 does not include any K-1. Where do I plug in info from K-1 into 1040X?

Or are they no longer a reputable source?

From Investor’s Business Daily:

Obama has proposed effective tax increases of 20% or more in the two top income-tax rates, phasing out the personal exemptions and all itemized deductions for top earners, as well as raising their tax rates.

He wants a 33% increase in the tax rates on capital gains and dividends, an increase of 16% to 32% in the top payroll tax rate, reinstatement of the death tax with a 45% top rate, and a new payroll tax on employers estimated at 7% to help finance his health insurance plan. He’s also contending for higher tariffs under his protectionist policies.

Finally, he would increase corporate taxes by 25%, though American businesses already face the second-highest marginal tax rates in the industrialized world, thus directly harming manufacturing and job creation while weakening demand for the dollar.

Obama:
Will cut taxes but when it expires, average US family will pay ,500 more in taxes. (CNN and MSNBC never makes it known)

The Child Tax Credit will decrease from ,000 to 0 a child

Income tax rates would rise around 3%-4.5%

AMT-Exemptions will decrease ,500 per filer

Business tax expenses- Maximum deduction amount will decrease ,000,from 0,000 to ,000

Capital Gains- Rates will rise 10%-20%

Income tax burden-will raise about 5% for many workers

Marriage penalty created

Dividends-rates to increase from 15% to 40%

50% average increased tax rates on lower income houses

He may not raise taxes on average American, but by allowing tax cuts to expire, will raise household expenses on an average family.

MCCAIN:

Wi make the Bush tax-cut permanent. And will add additional tax cuts for middle-class Americans.

Entrepreneurs are at the heart of American innovation, growth and prosperity. Entrepreneurs create the ultimate job security – a new, better opportunity if your current job goes away. Entrepreneurs should not be taxed into submission. John McCain will keep the top tax rate at 35 percent, maintain the 15 percent rates on dividends and capital gains, and phase-out the Alternative Minimum Tax. Small businesses are the heart of job growth; raising taxes on them hurts every workers.

To all those who believe that Obamwill "never" raise taxes but rather will cut taxes- Yes he will cut our taxes but when his tax cut plan has expires, we will pay for higher taxes than we pay now..

HENCE, his plan of cutting taxes is just a POLITICAL STRATEGY and not a real rescur for every American families.

MCCAIN’s tax cut policy is permanent, and perhaps the biggest tax cut in history as Alan Greenspan says.

-from an ECONOMICS student.

I heard that
When this tax shelters expire average US family will pay ,500 more in taxes:

The Child Tax Credit will decrease from ,000 to 0 a child

Income tax rates would rise around 3%-4.5%

AMT-Exemptions will decrease ,500 per filer

Business tax expenses- Maximum deduction amount will decrease ,000,from 0,000 to ,000

Capital Gains- Rates will rise 10%-20%

Income tax burden-will raise about 5% for many workers

Marriage penalty created

Dividends-rates to increase from 15% to 40%

50% average increased tax rates on lower income houses

He may not raise taxes on average American, but by allowing tax cuts to expire, will raise household expenses on an average family.

every year some people pay too much in taxes,,but don’t take advantage of investin in some kinda stock, some people invest with tha intentions of losing,stock that will loose but instead it sky rockets, if some would invest in ah individual ,to promote an artist,they could be big winnersin some cases, and get more deductions when they need them,,,,long term they get ah lot of deductions, and their value sky rockets,,with great dividends,,,,too many people do tha stock market, take ah chance,??? try investin in ah artist or something they know sumtin about ,applachia for example,promote sumtin allready started people with more talent ,then promote them,product is already done ,looks good ,sounds good ,already copy writed ,or go to ??????? BIGER THAN NASHVILLE<BIGGER THAN HOLLYWOOD> tell me what you think, [commin soon],,,