Tuesday, November 27, 2012
President Obama doesn't seem to want to wait for the continued slow decisions of Congress and seems intent in bringing his case of tax hikes for the rich to the people. Presently, he is continuing his effort with building pressure on the U.S. Congress through public support as he flies around the country, because it seems that Congress seems willing to let the Bush Tax Cuts expire by the end of this year.
President Obama continues to build his case with others including small-business owners on Tuesday,, returning Wednesday to host an event at the White House to highlight how “middle-class Americans who would be impacted' if Congress fails to reach a deficit reduction agreement by the year's end.
Besides trying to implement tax cuts, the Congress is trying to figure out on how to raise revenue at the same time in a package deal. But it seems as if the Congress is running out of time, as the tax hikes are set to kick in for every American starting on January 1, 2013.
The President is not letting down, and seems determined to make sure that the middle-class people continue to have no hike in taxes while proposing a tax hike for Americans making above $250,000.
Now here is the kicker. Most people do not understand how the tax hikes for the people making over $250,000 works. Let's say that a business owner makes $260,000 for the year. He will not be taxed at a higher rate on the entire $260,000 but would only be taxed at a higher rate for the mere $10,000 over the $250,000 that he made. If the business owner make $500,000 for the year, he would be taxed at a higher rate for only $250,000 of his income. Some business owners claim that they will refuse to pay the higher rates, therefore they would have to limit their business income. A few say that they will make sure to only make $249,999, just so they don't have to pay the higher tax. That is the most ridiculous thing I've ever heard. As an example of the extra tax, a family or a business with income between $250,000 and $300,00 in taxable income would on average owe an additional $199 for the year, and this is in according to projections drawn from Census and IRS data by the progressive Citizens for Tax Justice. That works out to $16 a month, enough to reduce the number of afternoon stops at Starbucks but not so devastating that the beach vacation gets canceled.