photo: Flickr user: 401(K) 2012
While the rest of the country is waiting for a deal to be reached so all of our taxes don't go up on January 1, 2013, the President is on vacation in Hawaii and the rest of Congress is on a break. The President and Democratic controlled Senate want Americans to pay higher taxes and the Republican controlled House says, no way.
The bottom line is federal tax cuts which were enacted by former President George W. Bush will expire at the end of 2012. If President Obama and the current Congress do not reach some sort of compromise this week, taxes are going up on all Americans, January 1, 2013. How much?
According to the Tax Policy Center, U.S. taxpayers will see an increase in taxes by an average of $3,500 a year. Taxes would increase about $2,400 for families with incomes of $50,000 to $75,000 per year. Obviously, this is not good news for an already struggling economy. Less money in consumer paychecks means less money to spend. Businesses and jobs would suffer under this kind of new tax burden.
Time is quickly running out. President Obama and Congress need to quit playing around with our money, our jobs, and ultimately our lives, and get these tax cuts extended permanently.