The following provisions in the President’s tax relief signed into law from 2001-2005 are scheduled to expire at the end of 2010:

* Creation of the new 10 percent individual income tax bracket.
* Reduction in individual income tax rates above 15 percent rate bracket.
* Reduction of marriage penalties in the standard deduction, 15 percent rate bracket, and the earned income tax credit.
* Lowering the tax rate on capital gains and dividend income to 15 percent (0 percent for the lowest two rate brackets).
* Increase in the child tax credit to $1,000.
* Expansion of the partially refundable additional child tax credit.
* Increase in the child and dependent care tax credit.
* Simplification of the rules for determining income for the earned income tax credit.

According to a Fact Sheet from the Department of the Treasury, millions of Americans will see their taxes go up by billions in 2011 if these measures are not made permanent. Here are some of the figures cited by the Treasury Department:

* More than 5 million low-income individuals and couples will no longer be exempt from individual income tax.

* 115 million taxpayers will see a $1,716 increase;
* 84 million women – $1,970 increase;
* 48 million married couples – $2,726 increase;
* 42 million families with children – $2,084 increase;
* 12 million single women with children– $1,062 increase;
* 17 million seniors – $2,034 increase;
* 26 million small business owners – $3,637 increase.

The Treasury Department predicts that a family of four with two children earning $56,300 (projected increase in income from $50,000 in 2006) will see a 132% increase in their taxes in 2011.

The ads and spam emails for Payday loan companies come at an increasing rate. They offer quick cash with no credit check, overnight deposit of funds, and no repayment until your next payday. All you need is a steady paycheck and a bank account. All of it sounds very tempting if you are just a little short to meet your bills.

In truth, payday loans amount to little more than legal internet loan-sharking. The interest paid on these loans is very high, usually a specific amount per $100 borrowed. When the loan comes due on payday, the loan company will deduct from your bank account the amount of the loan plus the interest. Companies allow you to rollover the loan to the next payday and payment can be deferred by paying only the interest on the loan. If you are paying $15 per $100 and roll the loan over three times, you will pay $60 to borrow $100.

Payday loans are the worst solution to a cash flow problem. If you find you are running short on bills, attempt to make arrangement with your creditors for extensions. Apply for overdraft protection on your bank account; this will keep you from paying large overdraft fees if you accidently spend more than you have in the account. Check the interest for cash advances on your credit card, they may be higher than the usual rate but still less than payday loans. If debt is a chronic problem, consult a non-profit debt-counseling service for advice on long-term solutions.

The IRS is set to implement its new program of assigning up to 40,000 tax debts to private debt colleton agencies on September 7, 2006. The IRS has chosen three PCAs and set strict guidelines to ensure taxpayer privacy. These private firms have no authority to work on technical issues, or cases that involve disputed tax debts. The private firms will contact taxpayers to make payment arrangements.

The IRS is warning taxpayers to be on the lookout for scam artists pretending to be collecting for the IRS. Taxpayers should be aware of the following:

* Taxpayer notification. All taxpayers who will be part of the private debt collection effort will know they are in the program before they are contacted by a private collection agency.

* IRS letter. All participants selected for the program will get a letter from the IRS, telling them they’ve been selected for the private debt collection program. The name of the company will be included in the letter.

* Collection agency letter. All participants will subsequently receive a second letter, this one from the collection agency, informing the taxpayer they will be contacted soon regarding back taxes.

* Money collected. When paying a collection agency on behalf of the IRS, remember that the check will be made out to the U.S. Treasury – not to an individual or firm. The collection agencies will never ask for cash or checks written to individuals.

* Contact the IRS. If in doubt, check IRS.gov or call the IRS at 800-829-1040 for more information.

Remember, the IRS will never ask people for their PIN numbers, passwords or similar secret information about their credit cards or bank accounts.

The internet still poses significant risks for the consumer in 2006, with the number of fraudulent sites increasing. Internet “phishing” incidents cost consumers $630 million according to Consumer Reports.

Spyware was even more costly at $2.6 billion, causing replacement of computers in nearly one million homes. Viruses were the most expensive internet hazard. 1 in 4 internet users had some incident involving a virus and the total cost was $5.2 billion.

See the full report at State of the Net 2006