Tuesday, February 2, 2010

And so it goes...

This week Newfoundland's prime minister will have heart surgery in the United States. No comment for those who keep repeating the mantra "We need health care just like Canada."

Read article

In the meantime in the good old United States, politicians who constantly remind us that we just had the "largest tax cuts in history" will continue to so despite the fact that we are about to be hit by devastating taxes. Te result will be a slowdown in the economy, which will lead to more government spending, which will lead to printing money, which will lead to inflation which will lead to high interest which will slow down the economy...

If you want to know the final outcome Google: Argentina; Economic History.

Here are some of the hikes we will be hit with when Obama lets tax cuts expire in 2010:

  • The Obama administration is looking to increase taxes for those extravagant rich who earn $250,00 or more. Did you know that in New York City a teacher married to a nurse qualify as rich?
  • By December 31 the top tier will rise from 35 to 39 percent.
  • The 25 percent tax bracket will revert back to 28 percent.
  • The 28 percent bracket will increase to 31 percent
  • The 33 percent bracket will increase to 36 percent.
  • The special 10 percent bracket is eliminated.
  • Investors will see taxes on dividends increase from 15 percent to 39.6 percent.

Yahoo Finances also reports that:

Millions of middle-class households already may be facing higher taxes in 2010 because Congress has failed to extend tax breaks that expired on January 1, most
notably a "patch" that limited the impact of the alternative minimum tax. The AMT, initially designed to prevent the very rich from avoiding income taxes, was never indexed for inflation. Now the tax is affecting millions of middle-income households, but lawmakers have been reluctant to repeal it because it has become a key source of revenue.

Without annual legislation to renew the patch this year, the AMT could affect an estimated 25 million taxpayers with incomes as low as $33,750 (or $45,000 for joint filers). Even if the patch is extended to last year's levels, the tax will hit American families that can hardly be considered wealthy -- the AMT exemption for 2009 was $46,700 for singles and $70,950 for married couples filing jointly.

Middle-class families also will find fewer tax breaks available to them in 2010 if other popular tax provisions are allowed to expire. Among them:

* Taxpayers who itemize will lose the option to deduct state sales-tax payments instead of state and local income taxes;

* The $250 teacher tax credit for classroom supplies;

* The tax deduction for up to $4,000 of college tuition and expenses;

* Individuals who don't itemize will no longer be able to increase their standard deduction by up to $1,000 for property taxes paid;

* The first $2,400 of unemployment benefits are taxable, in 2009 that amount was tax-free.

Add all these increases on top of sales taxes, state taxes, local taxes, real estate taxes, telephone taxes, cell phone taxes, gasoline taxes, car and registration fees, hotel taxes, parking taxes, tolls on roads and bridges, taxes on movies, theater and other forms of entertainment, and you are paying more than half of what you earn in taxes.

At what point is enough enough?

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