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William D King: A guide on who will benefit from the new income-tax bill and who will be hurt

William D King

President Obama on December 17. The bill is made up of two pieces of legislation. First, the temporary extension of the Bush-era income tax rates for two years along with other temporary provisions to make this extension revenue-neutral says William D King. It permanently extends the increased Child Tax Credit, Earned Income Tax Credit (EITC), American Opportunity Tax Credit (AOTC), and other long-time tax credits that were included in 2009 stimulus legislation signed into law by former President George W. Bush.

Who benefits from it?

Most people will not be affected by this bill either way since they are already paying the rate that would have ended at the end of the year. This bill mostly affects those who earn over $200,000 a year as they will now see a slightly higher tax rate.

Who gets hurt from it?

For those who would have benefited from the lower income tax rates that were set to expire at the end of 2010, this bill is bad news as those people stand to pay more taxes in 2011 and beyond. Also for most wealthy people, if their yearly incomes exceed $1 million then this bill represents bad news since they will be paying more taxes every year until 2012 is up. William D King says taxpayers with adjusted gross incomes greater than $300,000 (if single) or $350,000 (if married filing jointly) are facing an increased Medicare payroll tax of 0.9%.

Taxpayers with adjusted gross incomes greater than $300,000 (if single) or $350,000 (if married filing jointly) are facing an increased Medicare payroll tax of 0.9% on each dollar earned above those thresholds according to Investopedia. This is bad news for people who have a high income as they will now pay more taxes every year until 2012 is up. Also for most wealthy people, if their yearly incomes exceed $1 million then this bill represents bad news since they will be paying more taxes every year until 2012 is up explains William D King.

The article ends by saying that President Obama signed the bill into law on Monday, December 20. It goes on to say that most people will not be affected by this bill either way. Since they are already paying the rate that would have ended at the end of the year. This bill mostly affects those who earn over $200,000 a year. As they will now see a slightly higher tax rate. And for those who would have benefited from the lower income tax rates. That were set to expire at the end of 2010, this bill is bad news as those people stand to pay more taxes in 2011 and beyond.

Finally, it states that taxpayers with adjusted gross incomes greater than $300,000 (if single) or $350,000 (if married filing jointly). Are facing an increased Medicare payroll tax of 0.9% on each dollar earned above those thresholds according to Investopedia. This is bad news for people who have a high income. As they will now pay more taxes every year until 2012 is up.

What this article tells us is that the bill basically extended the Bush-era income tax rates by two years. And also extended some credits. Those were included in the 2009 stimulus legislation signed into law by former President George W. Bush. The article states that most people will not be affected by this bill either way since they are already paying the rate. That would have ended at the end of the year. In other words, it doesn’t affect them because they were already paying higher taxes.

Also, it says that this bill mostly affects those who earn over $200,000 a year. As they will now see a slightly higher tax rate. While some people would have benefited from the lower income tax rates. That was set to expire at the end of 2010 is finding some bad news in this bill. Since they stand to pay more taxes in 2011 and beyond. Finally, the article states that for most wealthy people. If their yearly incomes exceed $1 million then this bill represents bad news. Since they will be paying more taxes every year until 2012 is up.

However, taxpayers with adjusted gross incomes greater than $300,000 (if single) or $350,000 (if married filing jointly). Are facing an increased Medicare payroll tax of 0.9% on each dollar earned above those thresholds according to Investopedia. This is bad news for people who have a high income. As they will now pay more taxes every year until 2012 is up. The article ends by saying that President Obama signed the bill into law on Monday, December 20th. And it goes on to say that most people will not be affected by this bill either way. Since they are already paying the rate that would have ended at the end of the year says, William D King.

Conclusion:

This article basically tells us that this bill was just a “fix” to the tax rates. That we’re supposed to expire at the end of 2010 and it extended them until 2012 says, William D King. Most people will not be affected by the passage of this bill. Because they are already paying higher taxes, but there are some who stand to pay more in 2011 and beyond. It also says that if a person’s yearly income is less than $200,000. Then there is no effect on you since your tax rate has been set for 2011 and beyond. Because it does not affect you at all. However, if a person earns over $200,000 then he or she might see a slightly higher tax rate in 2011 and beyond. While those who would have benefited from lower income tax.