Planning to Visit the Philippines Soon?

There are hundreds of tourists attractions in the Philippines. But as a lover of the Island of Marinduque (Home of the Morions and Heart of the Philippines), I am indeed partial to its beauty, charm and its friendly and hospitable residents. Therefore, help me achieve my dream of seeing this island becomes a world tourist destination, by telling all your friends and relatives about this site. Welcome, to you all, new readers and faithful followers of this site! The photo above is Poctoy White Beach in Torrijos, Marinduque with beautiful and majestic Mt Malindig in the background. Some of the photos and videos on this site, I do not own. However, I have no intention on infringing your copyrights. Please do not forget to read the latest National and International news in the right side bar of this blog!

Tuesday, November 27, 2012

Fiscal Cliff and Higher Taxes Next Year

The Fiscal Cliff and your Taxes Next Year

Do you know that if Congress and President Obama do not agree on a compromise about taxes, you the average taxpayer will have to pay on the average about $2000 more of taxes next year.?

This is due to what newspapers are calling the Fiscal Cliff. This will occur because several popular tax credits and deductions along with the low tax rate will expire by the end of the year. So if Congress does not do anything before the end of the year, the taxes we will owe next year will average about $3,500 more per household, according to the Tax Policy Center. This means that the middle class tax payer are most likely to see an increase of $2000 in their taxes.

Other items which may increase your tax liability next year are:

1. Expiration of low capital gains rates and higher Dividends tax rate

2. Payroll tax Holiday will be over

3. Reduced Savings for Child care will take effect

4. Estate Tax rate will increase from 35 to 55%

5. Alternative minimum tax income exclusion must be approved retroactively

6. Higher income taxpayers who itemized will have a 3% reduction in their Schedule A Claims

7. Start of taxes related to Obamacare law

8. Reduced in Defense Spending

The whole country will be affected if this fiscal cliff occurs that economists are predicting another deep recession. However, California would be hit especially hard. A study by Professor Stephen Fuller at George Mason University shows that these cuts would cost California 230,000 jobs - 135,000 from the defense industry and 95,000 from non-defense sectors.

For additional details Read : http://www.bankrate.com/finance/taxes/fiscal-cliff-affect-taxes.asp

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