You married? Open your wallets wider for blammo's income taxes.

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What End of Bush Tax Cuts Means for You
Unless Congress takes action, it's not just the "rich" who will see higher tax bills


By Bill Bischoff | SmartMoney – Wed, May 16, 2012 10:46 AM EDT

The so-called Bush tax cuts are scheduled to expire at the end of this year. While you may already know that, you may not fully understand what's in store for you and your family. Here's what to expect.

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Harsher Marriage Penalty

The Bush tax cuts included several provisions to ease the so-called marriage penalty. The penalty can cause a married couple to pay more in taxes than when they were single, which is nuts.

Right now, the bottom two tax brackets for married joint-filing couples are exactly twice as wide as for singles. This helps keep the marriage penalty from biting lower and middle-income couples. Starting next year, the joint-filer tax brackets will contract, causing higher tax bills for many folks.

Currently, the standard deduction for married joint-filing couples is double the amount for singles. Starting next year, the joint-filer standard deduction will fall back to about 167% of the amount for singles.

Bottom line: lots of lower and middle-income income couples will face higher tax bills due to a harsher marriage penalty.

[Related: Watchdog calls foul on IRS whistleblower office]

Return of Phase-Out Rule for Itemized Deductions

Before the Bush tax cuts, a nasty phase-out rule could eliminate up to 80% of a higher-income individual's itemized deductions for mortgage interest, state and local taxes, and charitable donations. The rule was gradually eased and finally eliminated in 2010. Next year, however, the phase-out will be back in full force unless Congress takes action and the president approves. So if you itemize and have 2013 adjusted gross income above about $175,000 (or about $87,500 if you use married filing separate status), get ready for this phase-out rule to take a bite out of your wallet.

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Will Congress have the balls to fix this with enough pols to override a blammo veto?

[NHSparky]

In a word, nope.  Obama will let the Bush tax cuts expire (and really, they're HIS tax cuts since he extended them) as his way of saying, "**** ya'll, I'm outta here," on his way out the door next January.

[docstew]

In a word, nope.  Obama will let the Bush tax cuts expire (and really, they're HIS tax cuts since he extended them) as his way of saying, "**** ya'll, I'm outta here," on his way out the door next January.

Well, Pres Romney should be able to re-instate them NLT 21 Jan 13

[thundley4]

Why hasn't the GOP talked about the tax cuts expiring?  They need to hit Obama with it and get him on the record.  They also need to start slamming him on the fact that we are rapidly approaching the new debt ceiling, concentrate on how much it has been raised under Obama.

[NHSparky]

Why hasn't the GOP talked about the tax cuts expiring?  They need to hit Obama with it and get him on the record.  They also need to start slamming him on the fact that we are rapidly approaching the new debt ceiling, concentrate on how much it has been raised under Obama.

Keeping the power dry, so to speak.  No need bringing it up until after the conventions.