Friday, September 21, 2012

Food Stamp Recipients Rise, 100 Days Until Taxmageddon

It was the side by side headlines on Drudge that caught my attention. 
Together those two headlines can really make you think. 
We're about to get taxed to death and 265,000 people were added to food stamps last month. (And only 200,000 jobs were created.)
Here's the thing, folks. Taxmageddon doesn't include how we're going to pay for that many people to be on welfare. 
I'm not criticizing anyone for needing food stamps. I just wonder how we're going to handle being able to support ourselves and pay that much in taxes. Not being able to feed and house yourself when employed because taxes are so burdensome does not qualify someone for food stamps. 

Taxmageddon is still avoidable. But I hope people understand Taxmageddon is in the hands of Congress and the Senate. It has little to do with the ongoing presidential battle. 
If Congress doesn't figure out how to fix things, this stuff really will happen. These aren't worthless political ad threats. It is a real thing. 
Personal income tax rates will rise on January 1, 2013. All tax brackets will move. Everyone poor, middle, or rich, will have their income taxes go up. The top income tax rate will rise from 35 to 39.6% (same rate most small business profits are taxed).  The lowest rate will rise from 10 to 15%.  Itemized deductions and personal exemptions will again phase out, which has the same mathematical effect as higher marginal tax rates.  The full list of marginal rate hikes is below:
-The 10% bracket rises to a new and expanded 15%
-The 25% bracket rises to 28%
-The 28% bracket rises to 31%
-The 33% bracket rises to 36%
-The 35% bracket rises to 39.6%
Itemized deductions and personal exemptions? What are they? How about your mortgage deduction or child tax credit? Think I'm making empty threats? I'm not.
Higher taxes on marriage and family coming on January 1, 2013.  The “marriage penalty” (narrower tax brackets for married couples) will return from the first dollar of taxable income.  The child tax credit will be cut in half from $1000 to $500 per child.  The standard deduction will no longer be doubled for married couples relative to the single level.

This is getting scary. As someone who doesn't have a full-time job or full-time wages, this is more than scary. I have to pay taxes, but I don't have reliable income. And I don't qualify for any sort of assistance. I really don't know how I am going to both pay those taxes and support myself.

1 comment:

  1. For Taxmaggedon to happen, the outgoing Congress would have to refuse (or be unable) to act before the end of the year, and the new Congress in January would have to refuse (or be unable) to act before taxes are due in April. I would submit that, once the election is concluded, win, lose or draw everyone will be in more of a mood for constructive cooperation, and total gridlock in the face of Armageddon is less likely. Though, goodness knows, I don't put it totally past our elected officials. I'd be interested to hear your take on this.


Your comments are always welcome here!