No Middle Class Tax Hikes?

[dellinger63]

If the provisions are allowed to expire on December 31, the top-tier personal income tax rate will rise to 39.6 percent from 35 percent. But lower-income families will pay more as well: the 25 percent tax bracket will revert back to 28 percent; the 28 percent bracket will increase to 31 percent; and the 33 percent bracket will increase to 36 percent. The special 10 percent bracket is eliminated.

Investors will pay more on their earnings next year as well, with the tax on dividends jumping to 39.6 percent from 15 percent and the capital-gains tax increasing to 20 percent from 15 percent. The estate tax is eliminated this year, but it will return in 2011 -- though there has been talk about reinstating the death tax sooner.

Middle-class families also will find fewer tax breaks available to them in 2010 if other popular tax provisions are allowed to expire. Among them:


* Taxpayers who itemize will lose the option to deduct state sales-tax payments instead of state and local income taxes;


* The $250 teacher tax credit for classroom supplies;


* The tax deduction for up to $4,000 of college tuition and expenses;


* Individuals who don't itemize will no longer be able to increase their standard deduction by up to $1,000 for property taxes paid;


* The first $2,400 of unemployment benefits are taxable, in 2009 that amount was tax-free.

The last one made me lol.
http://ca.news.yahoo.com/s/reuters/1..._backdoortaxes