President Obama is active pitching his plan to preserve current rates for the middle class while raising them for the wealthy.
Congress and President Obama are actively trying to avoid the “fiscal cliff” which is a series of tax increases and spending cuts due to kick in at the end of the year. Many feel that the one-two punch would be too much for our economy to handle.
The lower tax rates were put into place under President George W. Bush and they are set to expire December 31st. The President’s plan includes extending the tax cuts for majority of Americans while letting rates rise for wealthier taxpayers.
Republicans have been touting a plan that includes extending cuts for all Americans, including those who make more than $250,000 a year. Republicans would also like to see savings in tax loopholes and cuts in the Medicare and Medicaid healthcare plans.
It is a time like this that the American people need a bipartisan effort more than ever. The most difficult aspect for many Americans to deal with is uncertainty. If it is unclear of what is coming as far as tax rates are concerned then people are more likely to sit and wait to invest.
However, if people are made aware of the rules that are going to be facing them heading into 2013 then it is more likely that people will dig into their pocket and start to invest as consumers. Meanwhile, companies will feel that they can confidently start to invest into technology, new products, or anything else that may help their companies grow.
What do you think? Does not knowing what is around the corner affect you and your situation? Are you concerned about the “fiscal cliff?”
In the meantime, as always, Liberty Tax® is here to service you and your particular needs. Feel free to stop on in for some tax planning.
Disclaimer: Every effort has been taken to provide the most accurate and honest analysis of the tax information provided in this blog. Please use your discretion before making any decisions based on the information provided. This blog is not intended to be a substitute for seeking professional tax advice based on your individual needs.