In 6 months, the largest tax hike in the history of American will take effect. They will hit families and small busineses in 3 tidal waves on Janurary 1, 2011.

First Wave: Expiration of 2001 and 2003 Tax Relief

In 2001 and 2003, the GOP Congress enacted several tax cuts for investors, small business owners, and families. These will all expire on January 1, 2011:

Personal income tax rates will rise. The top income tax rate will rise from 35 to 39.6 percent (this is also the rate at which two-thirds of small business profits are taxed). The lowest rate will rise from 10 to 15 percent. All the rates in between will also rise. Itemized deductions and personal exemptions will again phase out, which has the same mathematical effect as higher marginal tax rates. The full list of marginal rate hikes is below:

- The 10% bracket rises to an expanded 15%
- The 25% bracket rises to 28%
- The 28% bracket rises to 31%
- The 33% bracket rises to 36%
- The 35% bracket rises to 39.6%

Higher taxes on marriage and family. The “marriage penalty” (narrower tax brackets for married couples) will return from the first dollar of income. The child tax credit will be cut in half from $1000 to $500 per child. The standard deduction will no longer be doubled for married couples relative to the single level. The dependent care and adoption tax credits will be cut.

The return of the Death Tax. This year, there is no death tax. For those dying on or after January 1, 2011, there is a 55 % top death tax rate on estates over $1 million. A person leaving behind two homes and a retirement account could easily pass along a death tax bill to their loved ones.

Higher tax rates on savers and investors. The capital gains tax will rise from 15 percent this year to 20 percent in 2011. The dividends tax will rise from 15 percent this year to 39.6 percent in 2011. These rates will rise another 3.8 percent in 2013.

Second Wave: Obamacare

There are over twenty new or higher taxes in Obamacare. Several will first go into effect on January 1, 2011. They include:

The “Medicine Cabinet Tax” Thanks to Obamacare, Americans will no longer be able to use health savings account (HSA), flexible spending account (FSA), or health reimbursement (HRA) pre-tax dollars to purchase non-prescription, over-the-counter medicines (except insulin).

The “Special Needs Kids Tax” This provision of Obamacare imposes a cap on flexible spending accounts (FSAs) of $2500 (Currently, there is no federal government limit). There is one group of FSA owners for whom this new cap will be particularly cruel and onerous: parents of special needs children. There are thousands of families with special needs children in the United States, and many of them use FSAs to pay for special needs education. Tuition rates at one leading school that teaches special needs children in Washington, D.C. (National Child Research Center) can easily exceed $14,000 per year. Under tax rules, FSA dollars can be used to pay for this type of special needs education.

The HSA Withdrawal Tax Hike. This provision of Obamacare increases the additional tax on non-medical early withdrawals from an HSA from 10 to 20 percent, disadvantaging them relative to IRAs and other tax-advantaged accounts, which remain at 10 percent.

Third Wave: The Alternative Minimum Tax and Employer Tax Hikes

When Americans prepare to file their tax returns in January of 2011, they’ll be in for a nasty surprise—the AMT won’t be held harmless, and many tax relief provisions will have expired. The major items include:

The AMT will ensnare over 28 million families, up from 4 million last year. According to the left-leaning Tax Policy Center, Congress’ failure to index the AMT will lead to an explosion of AMT taxpaying families—rising from 4 million last year to 28.5 million. These families will have to calculate their tax burdens twice, and pay taxes at the higher level. The AMT was created in 1969 to ensnare a handful of taxpayers.

Small business expensing will be slashed and 50% expensing will disappear. Small businesses can normally expense (rather than slowly-deduct, or “depreciate”) equipment purchases up to $250,000. This will be cut all the way down to $25,000. Larger businesses can expense half of their purchases of equipment. In January of 2011, all of it will have to be “depreciated.”

Taxes will be raised on all types of businesses. There are literally scores of tax hikes on business that will take place. The biggest is the loss of the “research and experimentation tax credit,” but there are many, many others. Combining high marginal tax rates with the loss of this tax relief will cost jobs.

Tax Benefits for Education and Teaching Reduced. The deduction for tuition and fees will not be available. Tax credits for education will be limited. Teachers will no longer be able to deduct classroom expenses. Coverdell Education Savings Accounts will be cut. Employer-provided educational assistance is curtailed. The student loan interest deduction will be disallowed for hundreds of thousands of families.

Charitable Contributions from IRAs no longer allowed. Under current law, a retired person with an IRA can contribute up to $100,000 per year directly to a charity from their IRA. This contribution also counts toward an annual “required minimum distribution.” This ability will no longer be there.

Perriello spokeswoman Jessica Barba said Perriello met with and respected those who oppose the health care bill but ultimately made the decision he deemed best for his district. Perriello’s 5th District stretches from Charlottesville to Danville.
“A lot of the political pundits and all the conventional wisdom is saying that this is going to cost him the election next year,” she said. “He didn’t come to Congress to get re-elected.” 11/13/09 Huffington Post

In an article posted by the Daily Press, Charlottesville, VA, Larry Sabato, director of the Center for Politics at UVA said  “Perriello will not only have all the money he needs for his re-election campaign, he will spend as much as just about anyone in the country in 2010 for a House seat, and the Democrats and their affiliated groups are doing everything possible to help him.”

Perriello’s campaign is well positioned with record contributions for the re-election fight. Raising more than $600,000 in the first quarter, his campaign account as of April 1, sits at $1.4 million.

Campaign Finance Director Anna Scholl stated, “Without a dollar of federal lobbyist money and over 7,600 donors, we are proving that a people-powered campaign can win over the big insurance and big energy companies that have dominated our political system for so long. Working and middle-class families of VA know that Congressman Perriello (forgive me for laughing) represents them, not the special interests”.

“Perriello’s fundraising is soaring for the very same reason his career is sinking;” Andy Sere, regional press secretary for the National Republican Congressional Committee commented, “ Left-wing elites from San Francisco to New York City appreciate his willingness to sell out Virginians to push their job-killing agenda”.

Confirmed winner of the 5^th district 2008 congressional race, Perriello won by a mere 727 votes over incumbent Virgil Goode. “I am humble that voters entrusted me with this sacred duty. I am eager to represent the entire district as we work together to put our communities back on the path to economic revival.” Perriello said.

Perriello’s first vote was to confirm Pelosi as speaker of the house. Does anyone know what was wrong with that vote?

A yea vote on the stimulus bill, which did not boost the economy or created any jobs; that is unless you work paving roads; but then who needs roads when there are no jobs to drive to…not to mention it was loaded with PORK, PORK, and more PORK placing another burden on the taxpayers. More TAX!

Along comes Government Controlled Healthcare, which the majority of the  people did not want. Letters were written, emails were sent, phone calls were made, petitions were signed, and protest rallies and town hall meetings were attended against the takeover of our Healthcare system; our voices went unheard.  We are saddled with another piece of legislation that is bad for the economy and……………. oh yea, more added tax.

Perriello at signing of Healthcare Bill

(Is that a smile or a smirk?)

So lo and behold, here comes the Nationalized Student Loans which Perriello once again votes with the far-left…stating “the bill made ‘significant investments’ in American Education.”  Excuse me! Let’s check that one out…The “Government Banker” (the education secretary in Washington) will be calling all the shots. The Education Department will borrow money at 2.8% from the Treasury, lend it to you at 6.8% and spend the difference on new programs. You will work longer to pay off your student loans to help pay for someone else’s education, and to help your US Representative’s re-election. Example: If your loan debt is $24,651 and are assuming a 10yr. repayment at 6.8%, you pay roughly $9,400 in interest. Now multiply the $9,400. by 15 –19 million loans. That’s a lot of moo-la for their new programs and their new programs create new government jobs, which are taxpayer funded, so we’re back to…more taxes.

You do know the government had to take over all of the student loans because of all those greedy bankers. Right?

Perriello says he was ‘standing up for Americans with his vote for the “American Workers State & Business Relief Act,” claiming the bill will boost jobs and close the loopholes for companies outsourcing jobs overseas. Although the bill does make it more expensive for companies to outsource jobs by removing the tax credit, sadly this bill was loaded with PORK as well. What Perriello failed to admit was the bill also increases the federal deficit by another $123 billion, adding yet another tax burden on the backs of the taxpayers. If he calls this standing up for the Americans, I sure wish he would sit down.

In case you missed it, this video more than proves my point.

Voting against an amendment by Representative Lewis of California that would have prohibited the closure of the Guantanamo (GITMO) Bay facility, Perriello cast the deciding vote, siding with Pelosi to bring the detainees to Virginia. Joining him were Reps. Boucher, Connolly, Moran and Scott. Tim Johnson of Illinois and Ron Paul of Texas, both Republicans, voted with the majority as well.

Supporting Gore, Obama, Pelosi, and Reid; Perriello voted in 2009 in favor of  “Cap & Trade”, better known as “Cap & Tax,” the largest middle class energy tax increase in American History.

Visit this website for an interesting read.

Perriello Protests: ‘Police warn of arrest for trespassing’ /Tea Partiers Protest Perriello Office Protest Rules.

I visited Perriello’s website today, (June 22,2010), clicked  ‘Rep. Perriello Announces Stimulus Loan to Create Jobs In Martinsville’…the page was blank. I was hoping for a better plan.

Since the 2008 election we have seen Perriello’s ‘economic revival’ plummet to the point that our economy is one foot in the grave and the other on a banana peel. Unemployment is at an all time high, businesses are closing, jobs are headed overseas, we have been inundated with taxes and our Constitution has all but been flushed.

For those of us with common sense, who actually read and comprehend what we have read, we see the wreckage this administration has placed on our country. If something isn’t done to stop the madness, freedom will be just a word found in the dictionary.

Once a tax is imposed it never goes away and the excessive taxes this administration has imposed on us makes each of us a slave to the government system.

Due to the reckless spending of Washington, every man, woman and child in America is now responsible for $42,000 of the national debt.  Yet this does not seem to startle the ruling Democratic party. 

Even with high unemployment and Americans struggling to make ends meet, Congress has continued its spending spree, courtesy of the American taxpayer and foreign banks, say Jordan and Price: 

• This year, the federal government will take in about $2.1 trillion in revenue while spending $3.6 trillion.
• For the average American, it’s equivalent to spending $85,000 on a $50,000-per-year salary; that is unsustainable.
• Most families could not afford to put an extra $35,000 on their credit card, even for one year, but the federal government plans to do it for the next nine years. 

Both parties are to blame, say Jordan and Price: 

• Federal spending increased from $2.7 trillion under the last year of a Republican Congress in 2007 to a projected $3.6 trillion under Democratic control in 2010.
• During that time, our national debt has increased by 50 percent to $13 trillion.
• Astonishingly, we have added more to the national debt in the past five years ($5 trillion) than was added under the first 41 presidents, combined. 

How much more must we borrow and spend before Congress begins to rein it in, ask Jordan and Price? 

• The interest on our debt alone is unsustainable; this year, we are estimated to pay $209 billion, and within 10 years, annual interest payments on our debt are expected to reach almost a trillion dollars.
• That is equivalent to Congress passing new TARP legislation every year!

(Source: Rep. Jim Jordan and Rep. Tom Price, “Can We Balance the U.S. Budget? Yes, But Only If We Cut Spending,” Investor’s Business Daily, June 22, 2010.)

When he announced that he raised $600,000 in the first fund raising quarter of 2010, Perriello made a big deal of getting donations from all 22 localities in his district.  That may be true, but a closer look at where his donations came from tells a rather revealing story about Perriello’s support. 

 Perriello’s announcement didn’t reveal that forty percent of his campaign contributions come from outside Virginia . And of his in-state donations, 66% come from one area:  Charlottesville .  Here are the top metro areas for Perriello’s donors:

               Charlottesville       $251,158

               DC area                     $ 86,825

               New York                $ 77,503

               Roanoke                  $ 18,947

               Tidewater area     $ 15,966        

 Why is so much money is pouring in to Perriello from these areas?  Maybe it is because he represents the interests of left-wing donors from places like DC, New York , and Tidewater more than he does the people Lynchburg , Bedford , Danville , and the rest of the Fifth District outside of liberal Charlottesville .  His donors like that he votes with Nancy Pelosi over 90% of the time.  We don’t.  Let’s let him know how much we don’t like it by voting him out of office in November.

Now for a couple of my personal comments:   This totals $450,399.00.  Of that amount, $199,241.00 or 44.24% came from outside the district (Remember Roanoke is not in our district) and finally of the $450,300.00 $164,328.00 or 36.48% was from outside the State!! (Remember DC is not part of Virginia).  This just tells me that Perriello is bought and paid for by the K street lobbyists.  I understand that all candidates get money from organizations/businesses that have interests in our district and that may have addresses outside the district.  but this reeks!!

We have to get the word out that Perriello does not represent the interests of our district, where we live and work.  Not when ALMOST HALF of his contributions come from outside our  little corner of the world!

 You can examine Perriello’s campaign funding here:

http://www.opensecrets.org/politicians/summary.php?cycle=2010&cid=N00029339&type=I

Please click on the link below to read what he said today.

http://perriello.house.gov/index.cfm?sectionid=25&sectiontree=6,25&itemid=393

Here are his Contact numbers

Phone: (202) 225-4711

Fax: (202) 225-5681

Here is a link to send him a email

http://perriello.house.gov/?sectionid=90

PLEASE NOW IS THE TIME, MAKE YOU FEELINGS KNOWN!!

And a little from Robert Kiyosaki on the current mess.

You might mention this any time someone tells you that the founding fathers intended Congress to have carte blanche to take care of the “general welfare.”

“It is a precedent fraught with danger for the country, for when Congress once begins to stretch its power beyond the limits of the Constitution, there is no limit to it and no security for the people… … the Constitution, to be worth anything, must be held sacred and rigidly observed in all its provisions.”
— Colonel David Crockett member of the U.S. Congress 1827-31 & 1832-35, AKA Davvy Crockett

History’s immortals sometimes offer a glimpse of their greatness in events other than those that granted them immortality.

Tennessee militia colonel David Crockett, perhaps best known for his role in the 1836 defense of the Alamo, also served three terms in the United States Congress between 1827 and 1835. Nationally known during his lifetime as a political representative of the frontier, Crockett apparently came by that reputation honestly, inasmuch as he was not above listening to his constituents. The following excerpt from an 1884 biography by Edward S. Ellis, “The Life of Colonel David Crockett,” reveals how his own rural electorate taught him the importance of adhering to the Constitution and the perils of ignoring its restrictions.

Crockett was then the lion of Washington. I was a great admirer of his character, and, having several friends who were intimate with him, I found no difficulty in making his acquaintance. I was fascinated with him, and he seemed to take a fancy to me.

One day in the House of Representatives, a bill was taken up appropriating money for the benefit of a widow of a distinguished naval officer. Several beautiful speeches had been made in its support. The Speaker was just about to put the question when Mr. Crockett arose:

“Mr. Speaker — I have as much respect for the memory of the deceased, and as much sympathy for the suffering of the living, if suffering there be, as any man in this house, but we must not permit our respect for the dead or our sympathy for a part of the living to lead us into an act of injustice to the balance of the living. I will not go into an argument to prove that Congress has no power to appropriate this money as an act of charity. Every member upon this floor knows it. We have the right, as individuals, to give away as much of our own money as we please in charity; but as members of Congress we have no right so to appropriate a dollar of the public money. Some eloquent appeals have been made to us upon the ground that it is a debt due the deceased. Mr. Speaker, the deceased lived long after the close of the war; he was in office to the day of his death, and I have never heard that the government was in arrears to him.

“Every man in this House knows it is not a debt. We cannot, without the grossest corruption, appropriate this money as the payment of a debt. We have not the semblance of authority to appropriate it as a charity. Mr. Speaker, I have said we have the right to give as much money of our own as we please. I am the poorest man on this floor. I cannot vote for this bill, but I will give one week’s pay to the object, and, if every member of Congress will do the same, it will amount to more than the bill asks.

“He took his seat. Nobody replied. The bill was put upon its passage, and, instead of passing unanimously, as was generally supposed, and as, no doubt, it would, but for that speech, it received but few votes, and of course, was lost.

“Later, when asked by a friend why he had opposed the appropriation, Crockett gave this explanation:

“Several years ago I was one evening standing on the steps of the Capitol with some other members of Congress, when our attention was attracted by a great light over in Georgetown. It was evidently a large fire. We jumped into a hack and drove over as fast as we could. In spite of all that could be done, many houses were burned and many families made homeless, and, besides, some of them had lost all but the clothes they had on. The weather was very cold, and when I saw so many women and children suffering, I felt that something ought to be one for them. The next morning a bill was introduced appropriating $20,000 for their relief. We put aside all other business and rushed it through as soon as it could be done.

“The next summer, when it began to be time to think about the election, I concluded I would take a scout around among the boys of my district. I had no opposition there, but, as the election was some time off, I did not know what might turn up. When riding one day in a part of my district in which I was more a stranger than any other, I saw a man in a field plowing and coming toward the road. I gauged my gait so that we should meet as he came to the fence. As he came up, I spoke to the man. He replied politely, but, as I thought, rather coldly.

“I began: ‘Well, friend, I am one of those unfortunate beings called candidates, and–’

” ‘Yes, I know you; you are Colonel Crockett. I have seen you once before, and voted for you the last time you were elected. I suppose you are out electioneering now, but you had better not waste your time or mine. I shall not vote for you again.’

“This was a sockdolager… I begged him to tell me what was the matter.

” ‘Well, Colonel, it is hardly worth-while to waste time or words upon it. I do not see how it can be mended, but you gave a vote last winter which shows that either you have not capacity to understand the Constitution, or that you are wanting in the honesty and firmness to be guided by it. In either case you are not the man to represent me. But I beg your pardon for expressing it in that way. I did not intend to avail myself of the privilege of the constituent to speak plainly to a candidate for the purpose of insulting or wounding you. I intended by it only to say that your understanding of the Constitution is very different from mine; and I will say to you what, but for my rudeness, I should not have said, that I believe you to be honest….But an understanding of the Constitution different from mine I cannot overlook, because the Constitution, to be worth anything, must be held sacred, and rigidly observed in all its provisions. The man who wields power and misinterprets it is the more dangerous the more honest he is.’

“I admit the truth of all you say, but there must be some mistake about it, for I do not remember that I gave any vote last winter upon any Constitutional question.

” ‘No, Colonel, there’s no mistake. Though I live here in the backwoods and seldom go from home, I take the papers from Washington and read very carefully all the proceedings in Congress. My papers say that last winter you voted for a bill to appropriate $20,000 to some suffers by a fire in Georgetown. Is that true?’

“Well, my friend, I may as well own up. You have got me there. But certainly nobody will complain that a great and rich country like ours should give the insignificant sum of $20,000 to relieve its suffering women and children, particularly with a full and overflowing Treasury, and I am sure, if you had been there, you would have done just as I did.’

” ‘It is not the amount, Colonel, that I complain of; it is the principle. In the first place, the government ought to have in the Treasury no more than enough for its legitimate purposes. But that has nothing to do with the question. The power of collecting and disbursing money at pleasure is the most dangerous power that can be intrusted to man, particularly under our system of collecting revenue by tariff, which reaches every man in the country, no matter how poor he may be, and the poorer he is the more he pays in proportion to his means. What is worse, it presses upon him without his knowledge where the weight centers, for there is not a man in the United States who can ever guess how much he pays to the government. So you see, that while you are contributing to relieve one, you are drawing it from thousands who are even worse off than he. If you had the right to give anything, the amount was simply a matter of discretion with you, and you had as much right to give $20,000,000 as $20,000. If you have the right to give to one, you have the right to give to all; and, as the Constitution neither defines charity nor stipulates the amount, you are at liberty to give to any thing and everything which you may believe, or profess to believe, is a charity, and to any amount you may think proper. You will very easily perceive what a wide door this would open for fraud and corruption and favoritism, on the one hand, and for robbing the people on the other. No, Colonel, Congress has no right to give charity. Individual members may give as much of their own money as they please, but they have no right to touch a dollar of the public money for that purpose. If twice as many houses had been burned in this county as in Georgetown, neither you nor any other member of Congress would have thought of appropriating a dollar for our relief. There are about two hundred and forty members of Congress. If they had shown their sympathy for the suffers by contributing each one week’s pay, it would have made over $13,000. There are plenty of men in and around Washington who could have given $20,000 without depriving themselves of even a luxury of life. The congressmen chose to keep their own money, which, if reports be true, some of them spend not very creditable; and the people about Washington, no doubt, applauded you for relieving them from the necessity of giving by giving what was not yours to give. The people have delegated to Congress, by the Constitu- tion, the power to do certain things. To do these, it is authorized to collect and pay moneys, and for nothing else. Everything beyond this is usurpation, and a violation of the Constitution. So you see, Colonel, you have violated the Constitution in what I consider a vital point. It is a precedent fraught with danger to the country, for when Congress once begins to stretch its power beyond the limits of the Constitution, there is no limit to it, and no security for the people. I have no doubt you acted honestly, but that does not make it any better, except as far as you are personally concerned, and you see that I cannot vote for you..’

The website they are looking at is http://www.usdebtclock.org/

Remember, the numbers there are very conservative.  I think they are understating the level of our debt by half.

Court Orders Federal Reserve to Disclose Emergency Loan Details – I’m sure the Fed will appeal this ruling but it is a victory of sorts. My worry is that they will shop for a “sympathetic” Judge and get the ruling overturned.

Senator warns of hyperinflation rivaling the 1980s This article is amazing to me (I’m not a fan of Sen. Grassley). I guess he sees the situation as so bad that he can not deny what is coming. My fear is not of hyperinflation like in the 1980s but rather like that experienced by Wiemar Republic (Germany Before Hitler). I pray it does not come but I’m not sure how it can be stopped.

Democrats plan hundreds of reform rallies so I guess our efforts (& those of like minded patriots across the country) are working. We need to find out where any of these “rallies” are going to be in our area and go to make sure the news media can not create a false image of support for health care reform.

Rhode Island to shut down gov’t for 12 days… ….wow, if we don’t get some sense into the politicians heads all over the country many states are going to have to do this.

Obama Raises ’10 Deficit Outlook 19% to $1.5 Trillion …… what and you thought he would keep or be under his deficit projections. I bet this one will be revised again. I also think they are deliberately understating unemployment. Pester me to write an article about why.

White House projects bigger deficits, bigger debt – ok more of the same like the article above, just from a different source….

Feingold: No health care bill before Christmas – I hope he is right! I hope it is never!