Monday 11th of December 2017 12:22:33 AM

  • New Year, New Taxes…Great!

    Wednesday 02nd of January 2013 10:25:35 AM

    Let us all welcome the New Year with Tax Increases!  It’s wonderful right? Hardly! Tax increases are here in spite of the declarations that President Obama and his team made on Tuesday night saying that the fiscal crisis deal was a victory for the middle class. In this deal, it was said, tax relief will also come at a cost. It’s estimated that an additional $4 trillion deficit would be added to the already over $16 trillion debt.

    Tax hikes are clear and evident for 2013. Approximately 77% of American households will be required to dish over increased Federal Taxes in the 2013.  Any household making between $40,000 and $50,000 will pay approximately $579 in tax increases. Those making $50,000 to $70,000 will fork over and additional $822. For the majority of families the tax increases will cease at this point but for top earners taxes will get noticeably higher in 2013. The new tax deal will increase income taxes from 35% to 39.6%. Also, taxes on investments will increase 5 percent from 15% to 20%.

    Although this new tax package will affect every US tax payer it seems as though it truly hits hard to high income families.  According to the Tax Policy Center analysis, those making in between $500,000 and $1 Million will face an average tax increase of $14,812. If you make more than $1 million you will be looking at an average increase of $170,341.

    The occurrences of Tuesday night are only the beginning of new congressional battles over this matter. The Democrats will continue to push tax rates and the Republicans will favor spending cuts and entitlement reform.

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