With tax day upon us, U.S. Rep. Blaine Luetkemeyer (MO-9) is reminding hard-working American families, small business owners and farmers to be on the lookout for impending tax increases caused by the flawed policies of the majority in Congress.   

“Millions of Americans will be finalizing their tax returns and some will be surprised and angered to learn that Uncle Sam wants more tax money from them,” said Luetkemeyer, a member of the House Small Business and Agriculture committees. “American families need to be mindful that with the record spending binge that this President and Congress have been engaged in, they will see Uncle Sam demanding more and more of their hard-earned money.”

This year 100 percent of the income of the average American family earned from January 1 to April 8 went to pay for federal, state and local taxes in 2010, according to the Tax Foundation. Tax Freedom Day was April 9, the day when families put in enough work hours to cover the tax bill for this year. Tax Freedom Day in 1910 was January 19, when taxes were just 5 percent of a person’s income. Today Tax Freedom Day is nearly three months later, and taxes are more than 26 percent of a person’s income.

Unless Congress takes action, the following is a small list of some of the tax increases that will automatically occur over the following years:

 

·         The death tax will return at a 55 percent maximum rate and a $1 million exemption, just one year after the tax was completely phased out.

·         The dependent care tax credit will decrease from $3,000 to $2,400.

·         The tax credit to hire unemployed veterans and disconnected youth will expire.

·         The Work Opportunity Tax Credit, which allows employers to credit up to 40 percent of the first-year wages of a new employee, will expire.

 

 

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