What’s going to happen in January if Congress doesn’t act on the tax changes scheduled in January. Among the articles being published I received what I thought was a quick summary. The link is:
If Congress doesn’t act 9 of 10 Americans would see an average increase $3,500. For the middle income household, the one the candidates are so passionate to protect, would increase by $2,000. According to the article
The average federal tax rate would climb a whopping 5 percentage points. At the end of the day, Americans would have 6.2 percent less after-tax income.
Everyone would be affected if Congress fails to act. From the article:
A sampling of what is to come: The payroll tax holiday goes away, raising taxes on America’s 160 million wage earners. New provisions from the Affordable Care Act bump up taxes on the investment income of high-income households, and the Bush tax cuts for capital gains and dividends expire. The Bush-era income tax cuts end as well, with the top rate climbing to 39.6 percent from 35 percent. Without adjustment, the alternative minimum tax affects millions more taxpayers. Tax credits enacted in the stimulus go away. The estate tax jumps. The list goes on and on.
Everyone would be hit by the increases. Even the lowest income would feel the pinch. From the article:
For households in the lowest income quintile, earning less than $20,113 a year, the average federal tax rate would climb 3.7 percentage points, with taxes increasing $412 on average. Moreover, many low-income families, particularly those with children, would end up paying much more, because of changes like reducing the child tax credit by fifty percent.
The Inland Empire has been hit hard by the recent economic downturn. Unemployment remains high at 12.3%. That is down from last years 13%+. Disposable income is improving. But the economy is still tight.
There are many opportunities for improvement right now. Let me help you take advantage of them. At B2B CFO we want to make you more successful and “Cash – We help you get it”!