If the expiration of the 2001 tax breaks are allowed to proceed as planned, 2011 will see the highest tax hike in U.S. history. Discussion is heating up regarding extending some or all of the existing breaks, so perhaps not all of the changes will arrive in 2011. Below is a table of many of the looming changes:
| ITEM | CHANGE |
| 10% income tax rate | disappears |
| amount of income covered by 15% income tax rate | shrinks |
| top 25%, 28%, 33% & 35% income tax rates | convert to 28%, 31%, 36%, and 39.6% rates |
| 45% estate tax top rate (although there is no estate tax in 2010) | increases to 55%, with 5% surtax to phase out graduated rates for the highest estates |
| estate tax unified credit exemption equivalent (was $3.5 million in 2009) | reduced to $1 million |
| 15% capital gains rate | increased to 20% (18% for assets held at least 5 years) |
| 15% qualified dividend income tax rate | eliminated – increased to ordinary income rates |
| income exclusion for employer provided education assistance | eliminated |
| above-the-line student interest income tax deduction | reduced |
| household and dependent care income tax credits | reduced |
| ability of heirs and estates to use Section 121 home sale exclusion of decedent | eliminated |
| backup withholding rates on various types of income | raised |
| reduction in itemized deductions for higher income taxpayers | applies once again |
| phase-out of personal exemptions for higher income taxpayers | applies once again |
| 15% accumulated earnings and personal holding company tax rates | increased to 39.6% |
| generation skipping tax | reinstated, with a $1 million exclusion amount and a 55% rate |
| transfers at death to nonresident aliens | appreciation in property subject to income tax |
| 35% maximum gift tax rate | increased to 55% |
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