re: #844 albusteve

Estate taxes rise to pre-Bush era levels in 2011 along with the rest of the Bush era tax cuts (without action by Congress to amend those acts and tax rates). That’s due to the expiration of the EGTRRA/JGTRRA Acts of 2001 and 2003.

As a result of the HCR, taxes on investments and dividends will rise.

Wealthier Americans — families making over $250,000, individuals $200,000 — are the supposed targets here. Add in the new 3.8 percent Medicare tax to the year-end expiration of the 2003 Bush tax cuts, and they will see their capital gains and dividend rates will soar from 15 percent currently to 23.8 percent and 43.4 percent in 2013, respectively. But the income levels aren’t indexed for inflation. So the taxes will reach further down the income ladder each year. Assuming steady inflation, the tax in 2013 will actually affect households making over $226,000 and individuals $183,000. Another crack in the Obama tax pledge.

Mind you, that this is based on the same assumptions used by the CBO - that the rates will not be changed and the income levels will not be adjusted for inflation. If we take that into account (as is done with the AMT on an annual basis), the amount of revenues garnered from these taxes will be less than projected and result in a shortfall in revenues to these programs.