I took a quick look at the source material, H.R.8 — American Taxpayer Relief Act of 2012 (BILLS-112hr8eas) and came up with the four most important things you need to know about the 2013 IRS tax brackets.
1. Addition of a new tax bracket for ordinary income:
Section 101 (b)(3)(B) creates a new 39.6% tax bracket for those making over $450,000.00, $425,000.00, or $400,000.00 depending on filing status These are not the finalized numbers, as these brackets will be adjusted for inflation.
2. Additional of a new tax bracket for dividends and capital gains
Dividend tax rate will remain at 15% for those whose income is under $250,000 and will be 20% for those whose adjusted gross income is over $250,000.00. This is in addition to the ObamaCare surtax of 2.8%. So, for many Americans dependent on dividends or who happen to sell a property in one year, they will be hit with a huge tax increase from 15% to 22.8%.
3. Change to the AMT tax exemption amounts
Increasing the exemption amounts to $78,750 for those filing joint and $50,600 for those filing single and separately.
4. Republicans are useless
I say this as a soon to be former Republican. Tax increases will not bring more revenue. Tax increases strangle the economy. Or as the saying goes, four more years of "bad luck."
To juxtapose a great Ronald Wilson Reagan quote, "I didn't leave the Republican party, the party left me". Is it me or does Dr. Ron Paul look less crazy every day that passes?
Stay tuned for updates. Like us on facebook. That would be great.
UPDATE 1-7-2013: Preliminary 2013 tax brackets here
