Summer isn't over yet and there is still plenty of time left for racing!!
Mark these dates on your calendar so you don't miss out!RACING UNDER THE LIGHTS
SEE YOU THERE !!
Tuesday, August 31, 2010
Coming Soon...........MELSON POWER SHOW
Mark these dates on your calendar so you don't miss out!
Monday, August 30, 2010
STILL MISSING - ALEX ARROYO-FLORES
Alex Arroyo-Flores, 21, has been missing since Friday, August 27 at 5:00 PM. According to family members, Arroyo had just returned with his family from Puerto Rico and was on his was to work at the Fruitland McDonalds.
When Alex had not returned home at 3:00 AM the next morning, his parents became worried and tried to contact him. After calling his place of work, his parents found out Alex had never made it to work Friday night.
Arroyo's parents have filed a missing persons report and are asking for any help regarding his location. He is a student at UMES and a Manager at the Fruitland McDonald's. Arroyo is a Type 1 diabetic and uses an insulin pump. He is 21 years old, about 5'7", 140 lbs, Puerto Rican, dark brown hair and eyes.
He probably has stubble in his beard and mustache area. He speaks both English and Spanish. He was last seen wearing the red polo McDonald's uniform.
Normally wears a hand-made anklet around his left ankle, rubber bands around his right wrist, a black watch, and various necklaces that say Puerto Rico. Arroyo's car is a silver Toyota Corolla, license plate 2ER E21. It is about 2007, with a Puerto Rican flag hanging from the rearview mirror and dark seat and steering wheel covers. His father is employed at the NASA Wallops Flight Facility.
Anyone with any information regarding Arroyo's whereabouts is asked to call the Wicomico County Sheriff's Office at (410)548-4890.
When Alex had not returned home at 3:00 AM the next morning, his parents became worried and tried to contact him. After calling his place of work, his parents found out Alex had never made it to work Friday night.
Arroyo's parents have filed a missing persons report and are asking for any help regarding his location. He is a student at UMES and a Manager at the Fruitland McDonald's. Arroyo is a Type 1 diabetic and uses an insulin pump. He is 21 years old, about 5'7", 140 lbs, Puerto Rican, dark brown hair and eyes.
He probably has stubble in his beard and mustache area. He speaks both English and Spanish. He was last seen wearing the red polo McDonald's uniform.
Normally wears a hand-made anklet around his left ankle, rubber bands around his right wrist, a black watch, and various necklaces that say Puerto Rico. Arroyo's car is a silver Toyota Corolla, license plate 2ER E21. It is about 2007, with a Puerto Rican flag hanging from the rearview mirror and dark seat and steering wheel covers. His father is employed at the NASA Wallops Flight Facility.
Anyone with any information regarding Arroyo's whereabouts is asked to call the Wicomico County Sheriff's Office at (410)548-4890.
2 Men Sought For Home Invasion Near Greenbush
According to Major Todd Godwin, on Friday, August 27 at approximately 4:25 a.m., the Accomack County Sheriff's Office received a report that a man had been shot at a residence on Wanda Jane Lane near Greenbush.Further investigation revealed that two suspects forcibly entered the victims residence and the victim was shot during a confrontation with the suspects.
The victim sustained multiple gunshot wounds to the body. He was transported by Parksley ambulance to Riverside Shore Memorial Hospital and then transferred to Sentara Norfolk General Hospital where he is listed in stable condition.
Suspect 1 is described as a black male, tall, slim build, wearing a white shirt and black pants.
Suspect 2 is described as a black male, short, chubby build, wearing black pants.
Anyone with information concerning this crime is asked to contact the Accomack County Sheriff's Office at 787-1131 or 824-5666.
Suspect 1 is described as a black male, tall, slim build, wearing a white shirt and black pants.
Suspect 2 is described as a black male, short, chubby build, wearing black pants.
Anyone with information concerning this crime is asked to contact the Accomack County Sheriff's Office at 787-1131 or 824-5666.
Arrest Made For 3 Accomack County Robberies
ACCOMACK COUNTY, Va.- Authorities have arrested an Eden, Md. man wanted in connection with a series of armed robberies that occurred late last week in Accomack County.Sidney Andre Cottman, 33, is charged with three counts of robbery, three counts of use of firearm in commission of a robbery and three counts of possession of a firearm by a convicted felon. He is being held without bond in the Accomack County Jail.
According to Maj. Todd Godwin of the Accomack County Sheriff's Office, on Friday, Aug. 27 Cottman robbed the Royal Farms convenience store in Nelsonia and the Tru Blue gas station. Cottman is also accused of robbing the Dollar General in Oak Hall on Thursday, Aug. 26. In all three incidents Cottman held the clerks up at gunpoint and got away with an undisclosed amount of money, Godwin said.
Godwin said that while investigating the robberies, police received a tip that led them to a bus stop in Oak Hall where Cottman was getting ready to board a bus in order to flee the area. Sheriff's deputies and Virginia State Police troopers surrounded the bus stop in their search for Cottman who was taken into custody without incident.
The Sheriff's Office was also assisted by Virginia Marine Police and the Exmore Police Department.
Some People Think Mud Bogging Is A Good Place For Politics
Some of you may not know this but there have been a few people that have worked quite hard behind the scenes for quite a few months to arrange the events at the Gumboro Mudbog. In fact, those people work behind the scenes for the wounded soldiers more times than anyone knows.
Last week I had a few conversations with a couple of them about the event because I wanted to know more so that I could write about in more depth on this blog. These men are no slackers when it comes to caring about these men and women of the military and I wish more people (including myself when it comes to giving) could and would do more.
Last week I had a few conversations with a couple of them about the event because I wanted to know more so that I could write about in more depth on this blog. These men are no slackers when it comes to caring about these men and women of the military and I wish more people (including myself when it comes to giving) could and would do more. Saturday was designated to be a day for the wounded warriors. They were coming to Gumboro to watch the mud races and to enjoy themselves on Delmarva and so the people could say thank you for all they have done and for all of the sacrifices they have given to this country.
Mr. Butch Elzey, and and some others deserve a pat on the back for all of the hard work put forth for Saturday's events. However, I was told in my conversation that POLITICS will play NO part in the events. I agreed with that decision 100%.
But it seems that one person either didn't get the memo, or has no respect for the military, or just lacks common sense and compassion.
It has been reported that this person was PLACING CAMPAIGN STICKERS ON WOUNDED WARRIORS CHILDREN AT THE MUD BOG ON SATURDAY!!
Tell me Ms. Rollins, have you ever bothered to visit the Gumboro Mud Bog at any other time before this past Saturday? Have you ever been there before to just see what these dedicated people have done for YOUR state of DELAWARE?
I can't say a word about anyone running for any office in the state of Delaware.... I am not a resident of that state. But Ms. Rollins, I AM A RESIDENT OF THIS GREAT AND WONDERFUL UNITED STATES OF AMERICA !!
And that makes me able to tell you that what you did Saturday was inexcusable and low and in poor taste!!
MISSING PERSON
Alert Message has been issued by the Wicomico County Sheriff’s Office.Sunday August 29, 2010 8:37 PM EDT
Incident: Missing Person
Date of Incident: 28 August 2010
Location: Wicomico County
Narrative: On 28 August 2010 the Wicomico County Sheriff’s Office began an investigation into the disappearance of Alex Xavier Arroyo – Flores, 21 years old, of Salisbury.
Investigation revealed that Arroyo – Flores left his residence the previous evening at approximately 5:00 PM with the intent on heading to his place of employment in Fruitland, but has not been seen since leaving his residence.
Arroyo – Flores is a Hispanic Male, 5’10” with average length brown hair and brown eyes. He was last seen wearing a red McDonald’s polo, black pants and boots. He was known to have left in a 2007 Toyota Corolla, silver in color with Maryland
registration. All area law enforcement have been alerted to this information and this case is being actively investigated by the Sheriff’s Office.
Anyone who may have heard from Arroyo- Flores or may possibly have any information as to his whereabouts, is asked to contact the Sheriff’s Office immediately at 410-548-4890.
Man Arrested and Charged With Premeditated Murder
Sheriff Jack Robbins reports that on August 28, 2010 at approximately 11:43 PM the Northampton County Sheriff's Office was called to respond to 20247 Cheriton Crossroads for a gunshot victim.Upon arrival by Northampton County Sheriff's Office ad Emergency Rescue personnel, Harold Moses, 48 of Cheriton, was found deceased.
After a brief search, Trawn Stratton, 30 of Cheriton, was arrested and has bee charged with willfully, deliberately, and with premeditation, the murder of Harold Moses in the first degree; use, or attempting to use or displaying in a threatening manner, a firearm while committing to attempting to commit murder; and while armed with a deadly weapon, entering in the nighttime the dwelling house of adjoining occupied outhouse of Harold Moses with the intent to commit murder, rape, robbery or arson.
Stratton is currently being held in the Eastern Shore County Regional Jail with no bond.
The Northampton County Sheriff's Office was assisted by the Exmore Police Department, the Cape Charles Police Department and the Virginia State Police.
The Northampton County Sheriff's Office will not be releasing any further information regarding the case.
www.shoredailynews.com
Charity Event At Gumboro Mud Bog
There was hardly any room left to park Saturday afternoon at the Gumboro Mud Bog Charity Event for the Wounded Soldiers at Walter Reed Hospital. Word is that over 2,000 fans were on hand for a day of watching trucks in the various classes make the attempt to get through 200 feet of mud in the least amount of time.Mudbogging is a very competitive sport at times but Saturday wasn't just about competition. It was about showing the 65 or more guests from Walter Reed Hospital just how enjoyable the sport can be. And afterall, the day was about them and for them.
The wounded warriors, some with family, rolled in by bus with a police escort.Weather on Delmarva doesn't get any better than what we had Saturday and I know everyone had to notice the clear blue skies, low humidity and wonderful breeze. It was so wonderful to see the grandstands full of fans and fans lined against the fence.
The charity race always give the winner in each racing class double points and I am not aware (yet) of any records being broken in speed but I can report to all of you that during the 
Charity Event For the Wounded Soldiers At Walter Reed Hospital the Gumboro Mud Bog in just FIVE hours of racing in the mud raised FIFTEEN THOUSAND DOLLARS!!!! It was an honor for all of those in racing competition on Saturday to be able to entertain America's hero's for a few hours. Each and every one of them had a marvelous day and will be talking about their trip to the Eastern Shore for a very long time.
So to all of you out there that wrinkle your nose at mud racing remember this..... LOOK WHAT MUD CAN DO!!
Thankyou to all those men and women serving in the military, recovering in hospitals, retired and to your families for all you have done and continue to do for all of us so that we may remain free. God bless all of you.
Grand Opening of Tangier Island Clinic
Tangier Island, Va. --TANGIER ISLAND -- The ribbon-cutting on a new, state-of-the-art medical center yesterday turned out to be one of the biggest events in the small island's history.
The much-anticipated occasion also turned out to be much more than the dedication of a building.
"It's a pretty big day for Tangier," said island resident Bruce Gordy, as he hustled to close the Tangier Island History Museum early so he could find a good vantage point for the ceremony. "It's great, but it's sad, too."
The joy and pride stem from the grand opening of the $1.4 million health center that replaces a cramped, dilapidated clinic that has served the island for more than 50 years.
The sadness surrounds Dr. David Nichols, 62, the White Stone physician who has filled the role of primary physician for Tangier's 525 residents, traveling to the island on his day off every week for 31 years. Last month, only weeks before he would begin seeing patients in a new facility that had been his dream for years, he was diagnosed with terminal cancer. He said he could have only a few months to live.
Yesterday's festivities were bittersweet, said Jimmie Carter, the Northern Neck developer and friend and patient of Nichols' who spearheaded the public-private partnership that built the center and established a foundation that will help ensure high-quality health care for islanders for years to come.Under a cloudless sky and a relentless sun, hundreds gathered outside the new facility -- christened the David B. Nichols Health Center -- to cheer the building and honor its namesake.
It's a testament to the affection for Nichols that on such a hot day the crowd filled the narrow lanes around the building in folding chairs and the island's ubiquitous golf carts -- patients and former patients, islanders and mainlanders who came across the Chesapeake Bay by ferry or flew in by small plane or helicopter, making Tangier's small airfield look like a major airport for at least a day.
The center's front porch was filled with local and state officials, including Gov. Bob McDonnell and Rep. Robert J. Wittman, R-1st, who represents the island in Washington. McDonnell said he made the trip simply "to shower more love" on Nichols.
In welcoming everyone, Tangier Mayor James "Ooker" Eskridge stood at the top of the steps of the new clinic and said, "The Bible tells about God using certain people for certain jobs at certain times. Dr. Nichols, we appreciate all you've done and all you're doing, and we love you."
Schoolchildren sang "This Land Is Your Land." Representatives of Staff Care, the organization that chose Nichols as "Country Doctor of the Year" in 2006, came from Texas to present Nichols with its first "Country Doctor of the Decade" award. Elected officials bestowed resolutions and commendations upon him. One declared Nichols "A True Tangierman for Life."
Inez Pruitt, the Tangier-born physician assistant who was mentored and inspired by Nichols to follow her calling, praised his commitment and compassion and said she is "the most blessed woman in the world.""I wouldn't change a thing," she said, "except for time -- and more of it."
After the ceremony, the crowd meandered over to the island's schoolhouse for a reception that was more of a community picnic -- with tables laden with soft-shell crabs, clam fritters and ham, as well as homemade salads and cakes. The cups of iced tea went fast.
"All these people," marveled Hedy Bowden, who was among the kitchen volunteers scurrying about replacing empty bowls and platters.
Bowden, 63, grew up on the island and was trying to remember a bigger community event but couldn't.
"This is the biggest I've seen," she said.
Throughout the day, the cheers, laughter and posing for photographs inevitably were mixed with hugs and tears. Anyone who was asked what Nichols has meant to the island invariably said, "Everything."
"He's going to be greatly missed," Bowden said.
When it came his turn to talk, Nichols said not to worry.
"While I will leave you in body," Nichols told the gathering, his eyes red and his voice catching, "I will never leave you in spirit.
Virginia DMV Still Unable To Process Licenses
RICHMOND, Va. (AP) Virginia's governmental computer problems aren't fixed just yet.The Department of Motor Vehicles says it won't be able to process driver's licenses and identification cards Monday. The agency is one of 26 affected by a major crash of the state's problem-plagued centralized computers last week.
The Virginia Information Technologies Agency says all but about three agencies' systems have been restored. Work continues on the remaining systems.
The DMV says Virginians whose ID cards or driver's licenses expired between last Wednesday and Monday must renew in person once service is restored. They have to bring a birth certificate, passport, or other document confirming citizenship or legal residency.
Wright Criticizes Those Who Think Obama Is Muslim
LITTLE ROCK, Ark. – The Rev. Jeremiah Wright, President Barack Obama's controversial former pastor, accused people who wrongly believe Obama is Muslim of catering to political enemies during a fiery speech Sunday in Arkansas.In his sermon at New Millennium Church in Little Rock, Wright criticized supporters of the Iraq war and defended former state Court of Appeals Judge Wendell Griffen for speaking out against it. Griffen serves as the church's pastor.
Wright's only reference to Obama came when he compared Griffen's opponents to those who incorrectly think Obama is Muslim. The president, whose full name is Barack Hussein Obama, is Christian.
"Go after the military mindset ... and the enemy will come after you with everything," Wright told the packed church.
"He will surround you with sycophants who will criticize you and ostracize you and put you beyond the pale of hope and say 'you ain't really a Baptist' and say 'the president ain't really a Christian, he's a Muslim. There ain't no American Christian with a name like Barack Hussein,'" he added.
A poll released this month found that nearly one in five people, or 18 percent, said they thought Obama was Muslim, up from the 11 percent in March 2009. The proportion who correctly said he was Christian was 34 percent, down from 48 percent in March of last year. The poll, conducted by the nonpartisan Pew Research Center and its affiliated Pew Forum on Religion & Public Life, surveyed 3,003 people.
Obama cut ties with Wright in 2008, after Wright's more incendiary remarks hit the Internet during the presidential election. At a National Press Club appearance in April 2008, Wright claimed the U.S. government could plant AIDS in the black community, praised Nation of Islam leader Louis Farrahkan and suggested Obama was putting his pastor at arm's length for political purposes while privately agreeing with him.
Obama denounced Wright as "divisive and destructive" and left Wright's church in Chicago.Griffen lost a re-election bid for the Arkansas Court of Appeals in 2008, after high profile battles with a state judicial panel over the rights of judges to speak out on political issues. Griffen was elected in May to a judicial post in Pulaski County, the state's most populous county that includes Little Rock.
Griffen said he invited Wright to speak at his church as part of a monthlong focus on the relationship between faith and the community.
Wright defended Griffen's outspokenness on political issues, saying it showed he was willing to speak out even if it would cost him politically.
Wright's sermon focused on the Old Testament story of the prophet Elisha thwarting an attack by the Aramean Army. Wright repeatedly made references to the war in Iraq and suggested parallels with the Biblical story.
"What was his motivation? Elisha had embarrassed him, like Saddam had embarrassed George Herbert Walker," Wright said, referring to the former president.
Wright spoke as Arkansas Republicans hope to capitalize on Obama's unpopularity in the fall election. Obama has not visited the state since 2006, and lost its six electoral votes in the 2008 election.
Sunday, August 29, 2010
One Soldier Gets A Taste Of Mud Bogging!!
I will get no argument from anyone at Gumboro Mudbog yesterday when I say it was a wonderful Delmarvalous day!
With so much activity towards the ending of racing competition yesterday hardly no one noticed this soldier being pushed in his wheel chair onto the racing arena.
With so much activity towards the ending of racing competition yesterday hardly no one noticed this soldier being pushed in his wheel chair onto the racing arena.
I hope in some small way it says "thanks for all you have done for all of us".
Precious cargo aboard this truck! I'm not just talking about the driver I'm talking about the fearless warrior riding on the passenger side.
Watch this video................ (Length of pit is 200 feet).
Watch this video................ (Length of pit is 200 feet).
(I can't help but wonder what his thoughts were as that truck pushed mud onto the windshield.)
The crowd went WILD and by the time they reached the spectators everyone was on their feet cheering! 
God Bless and protect all the soldiers in the military.......far away or near. God bless and protect their families.
It is because of your sacrifices that we are given the opportunity to go about each day freely
and enjoy our lives without fear.
PLEASE CONTINUE TO SUPPORT OUR TROOPS!
Three great waves
In just six months, on January 1, 2011, the largest tax hikes in the history of America will take effect.
They will hit families and small businesses in three great waves.
On January 1, 2011, here’s what happens... (read it to the end, so you see all three waves)...
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:
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 only, there is no death tax. (It’s a quirk!) For those dying on or after January 1, 2011, there is a 55 percent
top death tax rate on estates over $1 million. A person leaving behind two homes, a business, a retirement account, could easily pass along a death tax bill to their loved ones. Think of the farmers who don’t make much money, but their land, which they purchased years ago with after-tax dollars, is now worth a lot of money. Their children will have to sell the farm, which may be their livelihood, just to pay the estate tax if they don’t have the cash sitting around to pay the tax. Think about your own family’s assets. Maybe your family owns real estate, or a business that doesn’t make much money, but the building and equipment are worth $1 million. Upon their death, you can inherit the $1 million business tax free, but if they own a home, stock, cash worth $500K on top of the $1 million business, then you will owe the government $275,000 cash! That’s 55% of the value of the assets over $1 million! Do you have that kind of cash sitting around waiting to pay the estate tax?
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 not be used to pay for this type of special needs education.
The HSA (Health Savings Account) 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 (AMT) 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 currently 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.
PDF Version Read more: <http://www.atr.org/six-months-untilbr-largest-tax-hikes-a5171>; http://www.atr.org/six-months-untilbr-largest-tax-hikes-a5171##ixzz0sY8waPq1
And worse yet?
Now, your insurance will be INCOME on your W2's!
One of the surprises we'll find come next year, is what follows - - a little "surprise" that 99% of us had no idea was included in the "new and improved" healthcare legislation . . . the dupes, er, dopes, who backed this administration will be astonished!
Starting in 2011, (next year folks), your W-2 tax form sent by your employer will be increased to show the value of whatever health insurance you are given by the company. It does not matter if that's a private concern or governmental body of some sort.
If you're retired? So what... your gross will go up by the amount of insurance you get.
You will be required to pay taxes on a large sum of money that you have never seen. Take your tax form you just finished and see what $15,000 or $20,000 additional gross does to your tax debt.. That's what you'll pay next year.
For many, it also puts you into a new higher bracket so it's even worse.
This is how the government is going to buy insurance for the15% that don't have insurance and it's only part of the tax increases.
Not believing this??? Here is a research of the summaries.....
On page 25 of 29: TITLE IX REVENUE PROVISIONS- SUBTITLE A: REVENUE OFFSET PROVISIONS-(sec. 9001,
as modified by sec. 10901) Sec.9002 "requires employers to include in the W-2 form of each employee the aggregate cost of applicable employer sponsored group health coverage that is excludable from the employees gross income."
- Joan Pryde is the senior tax editor for the Kiplinger letters.
- Go to Kiplingers and read about 13 tax changes that could affect you. Number 3 is what is above.
Hat Tip; Mrs. M
They will hit families and small businesses in three great waves.
On January 1, 2011, here’s what happens... (read it to the end, so you see all three waves)...
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 only, there is no death tax. (It’s a quirk!) For those dying on or after January 1, 2011, there is a 55 percent
top death tax rate on estates over $1 million. A person leaving behind two homes, a business, a retirement account, could easily pass along a death tax bill to their loved ones. Think of the farmers who don’t make much money, but their land, which they purchased years ago with after-tax dollars, is now worth a lot of money. Their children will have to sell the farm, which may be their livelihood, just to pay the estate tax if they don’t have the cash sitting around to pay the tax. Think about your own family’s assets. Maybe your family owns real estate, or a business that doesn’t make much money, but the building and equipment are worth $1 million. Upon their death, you can inherit the $1 million business tax free, but if they own a home, stock, cash worth $500K on top of the $1 million business, then you will owe the government $275,000 cash! That’s 55% of the value of the assets over $1 million! Do you have that kind of cash sitting around waiting to pay the estate tax?
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 not be used to pay for this type of special needs education.
The HSA (Health Savings Account) 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 (AMT) 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 currently 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.
PDF Version Read more: <http://www.atr.org/six-months-untilbr-largest-tax-hikes-a5171>; http://www.atr.org/six-months-untilbr-largest-tax-hikes-a5171##ixzz0sY8waPq1
And worse yet?
Now, your insurance will be INCOME on your W2's!
One of the surprises we'll find come next year, is what follows - - a little "surprise" that 99% of us had no idea was included in the "new and improved" healthcare legislation . . . the dupes, er, dopes, who backed this administration will be astonished!
Starting in 2011, (next year folks), your W-2 tax form sent by your employer will be increased to show the value of whatever health insurance you are given by the company. It does not matter if that's a private concern or governmental body of some sort.
If you're retired? So what... your gross will go up by the amount of insurance you get.
You will be required to pay taxes on a large sum of money that you have never seen. Take your tax form you just finished and see what $15,000 or $20,000 additional gross does to your tax debt.. That's what you'll pay next year.
For many, it also puts you into a new higher bracket so it's even worse.
This is how the government is going to buy insurance for the15% that don't have insurance and it's only part of the tax increases.
Not believing this??? Here is a research of the summaries.....
On page 25 of 29: TITLE IX REVENUE PROVISIONS- SUBTITLE A: REVENUE OFFSET PROVISIONS-(sec. 9001,
as modified by sec. 10901) Sec.9002 "requires employers to include in the W-2 form of each employee the aggregate cost of applicable employer sponsored group health coverage that is excludable from the employees gross income."
- Joan Pryde is the senior tax editor for the Kiplinger letters.
- Go to Kiplingers and read about 13 tax changes that could affect you. Number 3 is what is above.
Hat Tip; Mrs. M
Never let your card out of your sight.....check and check again!
Be sure to read Scene 3 carefully. Quite interesting.
This is a new one. People sure stay busy trying to cheat us, don't they?
SCENE 1.
A friend went to the local gym and placed his belongings in the locker. After the workout and a shower, he came out, saw the locker open,
and thought to himself, 'Funny, I thought I locked the locker..
Hmm, 'He dressed and just flipped the wallet to make sure all was in order.
Everything looked okay - all cards were in place�
A few weeks later his credit card bill came - a whooping bill of $14,000!
He called the credit card company and started yelling at them, saying that he did not make the transactions.
Customer care personnel verified that there was no mistake in the system and asked if his card had been stolen�
'No,' he said, but then took out his wallet, pulled out the credit card, and yep - you guessed it - a switch had been made.
An expired similar credit card from the same bank was in the wallet.
The thief broke into his locker at the gym and switched cards.
Verdict: The credit card issuer said since he did not report the card missing earlier, he would have to pay the amount owed to them.
How much did he have to pay for items he did not buy?
$9,000! Why were there no calls made to verify the amount swiped?
Small amounts rarely trigger a 'warning bell' with some credit card companies.
It just so happens that all the small amounts added up to big one!
============================
SCENE 2.
A man at a local restaurant paid for his meal with his credit card.
The bill for the meal came, he signed it and the waitress folded the receipt and passed the credit card along.
Usually, he would just take it and place it in his wallet or pocket. Funny enough, though, he actually took a look at the card and, lo and behold, it was the expired card of another person.
He called the waitress and she looked perplexed.
She took it back, apologized, and hurried back to the counter under the watchful eye of the man.
All the waitress did while walking to the counter was wave the wrong expired card to the counter cashier, and the counter cashier immediately looked down and took out the real card.
No exchange of words --- nothing! She took it and came back to the man with an apology..
Verdict:
Make sure the credit cards in your wallet are yours.
Check the name on the card every time you sign for something and/or the card is taken away for even a short period of time.
Many people just take back the credit card without even looking at it, 'assuming' that it has to be theirs.
FOR YOUR OWN SAKE, DEVELOP THE HABIT OF CHECKING YOUR CREDIT CARD EACH TIME IT IS RETURNED TO YOU AFTER A TRANSACTION!
==========================
SCENE 3:
Yesterday I went into a pizza restaurant to pick up an order that I had called in.
I paid by using my Visa Check Card which, of course, is linked directly to my checking account.
The young man behind the counter took my card, swiped it then laid it on the counter as he waited for the approval, which is pretty standard procedure�
While he waited, he picked up his cell phone and started dialing.
I noticed the phone because it is the same model I have, but nothing seemed out of the ordinary. ? Then I heard a click that sounded like my phone sounds when I take a picture.
He then gave me back my card but kept the phone in his hand as if he was still pressing buttons.
Meanwhile, I'm thinking: I wonder what he is taking a picture of, oblivious to what was really going on.
It then dawned on me: the only thing there was my credit card, so now I'm paying close attention to what he is doing�
He set his phone on the counter, leaving it open.
About five seconds later, I heard the chime that tells you that the picture has been saved.
Now I'm standing there struggling with the fact that this boy just took a picture of my credit card.
Yes, he played it off well, because had we not had the same kind of phone, I probably would never have known what happened.
Needless to say, I immediately cancelled that card as I was walking out of the pizza parlor.
All I am saying is be aware of your surroundings at all times.
Whenever you are using your credit card take caution and don't be careless.
Notice who is standing near you and what they are doing when you use your card.
Be aware of phones, because many have a camera phone these days.
Hat Tip; Kack
This is a new one. People sure stay busy trying to cheat us, don't they?
SCENE 1.
A friend went to the local gym and placed his belongings in the locker. After the workout and a shower, he came out, saw the locker open,
and thought to himself, 'Funny, I thought I locked the locker..
Hmm, 'He dressed and just flipped the wallet to make sure all was in order.
Everything looked okay - all cards were in place�
A few weeks later his credit card bill came - a whooping bill of $14,000!
He called the credit card company and started yelling at them, saying that he did not make the transactions.
Customer care personnel verified that there was no mistake in the system and asked if his card had been stolen�
'No,' he said, but then took out his wallet, pulled out the credit card, and yep - you guessed it - a switch had been made.
An expired similar credit card from the same bank was in the wallet.
The thief broke into his locker at the gym and switched cards.
Verdict: The credit card issuer said since he did not report the card missing earlier, he would have to pay the amount owed to them.
How much did he have to pay for items he did not buy?
$9,000! Why were there no calls made to verify the amount swiped?
Small amounts rarely trigger a 'warning bell' with some credit card companies.
It just so happens that all the small amounts added up to big one!
============================
SCENE 2.
A man at a local restaurant paid for his meal with his credit card.
The bill for the meal came, he signed it and the waitress folded the receipt and passed the credit card along.
Usually, he would just take it and place it in his wallet or pocket. Funny enough, though, he actually took a look at the card and, lo and behold, it was the expired card of another person.
He called the waitress and she looked perplexed.
She took it back, apologized, and hurried back to the counter under the watchful eye of the man.
All the waitress did while walking to the counter was wave the wrong expired card to the counter cashier, and the counter cashier immediately looked down and took out the real card.
No exchange of words --- nothing! She took it and came back to the man with an apology..
Verdict:
Make sure the credit cards in your wallet are yours.
Check the name on the card every time you sign for something and/or the card is taken away for even a short period of time.
Many people just take back the credit card without even looking at it, 'assuming' that it has to be theirs.
FOR YOUR OWN SAKE, DEVELOP THE HABIT OF CHECKING YOUR CREDIT CARD EACH TIME IT IS RETURNED TO YOU AFTER A TRANSACTION!
==========================
SCENE 3:
Yesterday I went into a pizza restaurant to pick up an order that I had called in.
I paid by using my Visa Check Card which, of course, is linked directly to my checking account.
The young man behind the counter took my card, swiped it then laid it on the counter as he waited for the approval, which is pretty standard procedure�
While he waited, he picked up his cell phone and started dialing.
I noticed the phone because it is the same model I have, but nothing seemed out of the ordinary. ? Then I heard a click that sounded like my phone sounds when I take a picture.
He then gave me back my card but kept the phone in his hand as if he was still pressing buttons.
Meanwhile, I'm thinking: I wonder what he is taking a picture of, oblivious to what was really going on.
It then dawned on me: the only thing there was my credit card, so now I'm paying close attention to what he is doing�
He set his phone on the counter, leaving it open.
About five seconds later, I heard the chime that tells you that the picture has been saved.
Now I'm standing there struggling with the fact that this boy just took a picture of my credit card.
Yes, he played it off well, because had we not had the same kind of phone, I probably would never have known what happened.
Needless to say, I immediately cancelled that card as I was walking out of the pizza parlor.
All I am saying is be aware of your surroundings at all times.
Whenever you are using your credit card take caution and don't be careless.
Notice who is standing near you and what they are doing when you use your card.
Be aware of phones, because many have a camera phone these days.
Hat Tip; Kack
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