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- 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 ri

- 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% 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. I live in California - 10% state tax. Also 10% sales tax and 10% tip. I am seriously thinking of dropping my US citizenship (I am dual-citizen)....have people explored this before?

mgkimsal 16y ago
what would dropping your citizenship accomplish? you'd still have to pay income taxes in the US if you earn income in the US (generally speaking).
kgrin 16y ago
Yes, taxes will rise to the draconian and economy-stifling levels we suffered under in the 1990s.
- CWuestefeld 16y ago
  You're misrepresenting. Some of the increases are the result of expiration of the Bush tax cuts. Others are new, the result of healthcare initiatives and other programs.
  - kgrin 16y ago
    I was mostly responding to the comment, which was about the income tax rates. That said, while some of the HCR provisions resulted in new limits and exemptions on tax-free HSA/FSA accounts and the like, there really isn't a new "health care" tax. Some of the other items on the list, like the AMT thing, has little to do with the current administration - it's a perennial issue that Congress "fixes" every year. (Which isn't to say that it's not a problem that they should just address one way or another, but it's silly to blame the AMT on anything new from Obama - it happens every single freaking year). A few of the other items are downright laughable - they're expirations of temporary tax cuts or programs that were part of the stimulus (the stimulus that, FWIW, most conservatives opposed).
- hga 16y ago
  And of course it makes absolutely no difference whether you increase taxes when the economy is growing vs. when it's at best treading water.
hugh3 16y ago
Thankfully I'm not a US citizen, but I am thinking about leaving the US. I moved here largely because I was under the impression it was a low-tax country. What I didn't realise at the time was that you can add an extra 10% or so in state taxes onto the quoted rates (or live the desert and pay an equivalent amount in property taxes). Australia may have a 48.5% (last I checked) top tax rate, but at least once you've paid that you're basically done.
roboneal 16y ago
If you listen to the media mantra, these were all of "Bush's tax cuts for the rich" - there are a lot of average people in the 10,15,25% tax brackets.
- hugh3 16y ago
  I hadn't realised until now that these tax increases hit anyone under $250K. Shows how poorly the media have been doing their job.
- holcombj 16y ago
  The 2011 tax rates have not yet been determined. If Congress lets all of the 2001 tax cuts expire, then we will get the rates cited in this article. It seems likely that they will only let the 2 highest income brackets return to the 2001 level, and keep the tax cuts on the lower income brackets. http://www.mydollarplan.com/tax-brackets/ http://www.mydollarplan.com/tax-brackets/ Does anybody know when the each year's tax rates are effectively set in stone?
avar 16y ago
Where you pay taxes has nothing to do with your citizenship. It has to do with where you work, if you move to another country and work there you won't have to pay taxes in the US.
- dmm 16y ago
  US income taxes are based on your worldwide income.
- hugh3 16y ago
  Actually the US is one of the extremely few countries which taxes its citizens on their foreign earnings (above, I believe, about $US80K). This means US citizens living abroad are double taxed, which is part of the reason you see so few US citizens working abroad.

mgkimsal 16y ago

what would dropping your citizenship accomplish? you'd still have to pay income taxes in the US if you earn income in the US (generally speaking).

kgrin 16y ago

Yes, taxes will rise to the draconian and economy-stifling levels we suffered under in the 1990s.

CWuestefeld 16y ago
You're misrepresenting. Some of the increases are the result of expiration of the Bush tax cuts. Others are new, the result of healthcare initiatives and other programs.
- kgrin 16y ago
  I was mostly responding to the comment, which was about the income tax rates. That said, while some of the HCR provisions resulted in new limits and exemptions on tax-free HSA/FSA accounts and the like, there really isn't a new "health care" tax. Some of the other items on the list, like the AMT thing, has little to do with the current administration - it's a perennial issue that Congress "fixes" every year. (Which isn't to say that it's not a problem that they should just address one way or another, but it's silly to blame the AMT on anything new from Obama - it happens every single freaking year). A few of the other items are downright laughable - they're expirations of temporary tax cuts or programs that were part of the stimulus (the stimulus that, FWIW, most conservatives opposed).
hga 16y ago
And of course it makes absolutely no difference whether you increase taxes when the economy is growing vs. when it's at best treading water.

hugh3 16y ago

Thankfully I'm not a US citizen, but I am thinking about leaving the US. I moved here largely because I was under the impression it was a low-tax country. What I didn't realise at the time was that you can add an extra 10% or so in state taxes onto the quoted rates (or live the desert and pay an equivalent amount in property taxes). Australia may have a 48.5% (last I checked) top tax rate, but at least once you've paid that you're basically done.

roboneal 16y ago

If you listen to the media mantra, these were all of "Bush's tax cuts for the rich" - there are a lot of average people in the 10,15,25% tax brackets.

hugh3 16y ago
I hadn't realised until now that these tax increases hit anyone under $250K. Shows how poorly the media have been doing their job.
holcombj 16y ago
The 2011 tax rates have not yet been determined. If Congress lets all of the 2001 tax cuts expire, then we will get the rates cited in this article. It seems likely that they will only let the 2 highest income brackets return to the 2001 level, and keep the tax cuts on the lower income brackets. http://www.mydollarplan.com/tax-brackets/ http://www.mydollarplan.com/tax-brackets/ Does anybody know when the each year's tax rates are effectively set in stone?

avar 16y ago

Where you pay taxes has nothing to do with your citizenship. It has to do with where you work, if you move to another country and work there you won't have to pay taxes in the US.

dmm 16y ago
US income taxes are based on your worldwide income.
hugh3 16y ago
Actually the US is one of the extremely few countries which taxes its citizens on their foreign earnings (above, I believe, about $US80K). This means US citizens living abroad are double taxed, which is part of the reason you see so few US citizens working abroad.