Ok, pay checks don't shrink on Jan 1, 2011 due to the extension Bush-era federal tax cuts. Is this a "Read My Lips" campaign promise come true?
I wrote in an earlier post how not extending these tax cuts would have an immediate impact on our money and country's economic recovery.
As Obama states, "What can we get done right now?" He admits he can't win a political fight in the Senate, therefore remain steadfast on his position that middle-income families get relief. He'll continue his fight that the Republican position is wrong.
Sure, continuation of extending tax-cuts again will come up again for debate in 2012. Therefore, a temporary fix.
I have two schools of thoughts on this:
- Raise Taxes - this will help towards cutting the federal deficit, yet it could stifle the growth of our economy. Do you think that increasing taxes on a stagnant or shrinking pool of revenue would be best?
- Keep Taxes Low - this may add initially $800 billion to the deficit but the hope is that it greatly increases the revenue created by more small businesses flourishing and jobs created that increase what can then, be taxed overall
What school of tax thought do you side with?
In terms of keep more of what we make, here's an outside-the-box suggestion:
Start a Home-based Business, Even While Employed - the typical middle-class household can legally, ethically, morally reduce their taxes this way. Real estate investing, teaching music lessons from your home, direct sales or networking marketing allow you to write off the business end of the mileage you put on your car, a percentage of your utility bills or even hire your children (their allowance can be tax-deductible).
Caution - your family and friends may laugh at you from wanting to do something "different". But two years from now, you just may be smiling all the way to the bank with all your new entrepreneurial friends shaking off the sand between your toes from the beaches in Tahiti.
Family and friends will be asking you for gas money.
I am neither Red or Blue. If you cut my veins, Marine Corps Green flows right through in my fight to pursue my American Dream. Take charge of our income today and prepare towards higher taxes in the future...this environment is inevitable.
Our window of opportunity is NOW.