Reports say that most Americans will see their taxes increase after we go over the fiscal cliff next week (see impact here). As Congress continues to slog this one out with the President, the question most people are asking is how much their own taxes will go up after January 1. I’ve come across several websites that have calculators to help you figure the impact on your own bottom line. If you are interested, The Washington Times recommends the one at TaxFoundation.org. After plugging in your numbers, you may find yourself hoping for a last-minute deal to avert the cliff.
1. If you have extra money withheld from your paycheck so that you can receive a big refund, you are making an interest free loan to the federal government. You need to become a better steward of your money and learn to save on your own. If I get back more than $100, I get angry at my poor money management.
2. Given the general consensus that Social Security is underfunded, I cannot fathom why they are considering extending the payroll tax cut.