Friday, September 17, 2010
Death and taxes
As we all know, the Bush tax cuts are set to expire at the end of this year, at which point they will revert back to the Clinton-era level of tax rates. A few number crunches shows approximate increases for a few brackets: an individual making $40,000 per year would see an increase of about $400, that same individual making $80,000 should expect to pay $1,600 more. But the most dramatic changes will be at the top-most level, with a family of 4 making $5 million likely paying upwards of $325,000 more. Now, only very few people (4%) make more than $200,000, so for the vast majority the increases would not be significant, but in our current economy, can the average tax payer really afford less money in their pocket than they already make? The lower and middle classes are already experiencing enough money troubles as it is, and making even less might crumble what they have. The upper class, on the other hand, seems to be fairly well-off, and personally, I believe they can take one for the team, so to speak. With a skyrocketing national debt and plummeting economy, we need to tread carefully on the issue of money and what we do with it.