Worried about the Obama tax increases?

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Posted 11/14/2012 by e_doe in NSBR Board
 

e_doe
PeaNut

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Posted: 11/14/2012 8:11:34 PM
This tax calculator shows you what happens under the three likeliest scenarios:

Interactive.taxfoundation.org/taxcalc/#calculator

Consider yourself forewarned: you might be surprised at the outcome.
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Beanbean
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Posted: 11/14/2012 8:19:11 PM
Nope.


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StuckOnPeas

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Posted: 11/14/2012 8:23:01 PM
I'm good...

hoagie
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Posted: 11/14/2012 8:26:09 PM
Deep trouble!!

Epeanymous
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Posted: 11/14/2012 8:29:02 PM
I pay a bit less under the Obama plan than the Republican plan, but my effective tax rate is pretty similar under both plans.

CraftChickaPowPow
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Posted: 11/14/2012 8:31:12 PM
wow my tax burden will be higher and my take home pay will be less under all 3 scenarios. I'm completely shocked and surprised!


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luvcookies
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Posted: 11/14/2012 8:34:52 PM
Mine would be a little less under the Obama plan. Tax cut expiring would hurt me the most.



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AncestralPea

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Posted: 11/14/2012 8:36:26 PM
If tax cuts expire: $6,000 more in taxes. $500 less per month in my budget is going to hurt. For us, that is a lot of money.

cmpeter
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Posted: 11/14/2012 8:43:10 PM

I pay a bit less under the Obama plan than the Republican plan, but my effective tax rate is pretty similar under both plans.


Ditto this for us.


Cindi

freecharlie
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Posted: 11/14/2012 8:49:05 PM
First, they aren't Obama tax increases, they are tax cuts that were supposed to be temporary that are expiring. Bush knew that the country couldn't sustain with the tax cuts being permanent.

With that said, there ia a $4,000 swing bewteen Obamas plan and the tax cut expiring with the Republican plan right in the middle.

I was planningo n paying more this year anyway, we'll budget the same for next tax year.


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e_doe
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Posted: 11/14/2012 8:49:36 PM
The expiration of the tax cuts will hurt everyone. It also cuts a bunch of jobs. But this has been going on for three years...they settled on this back when they FIRST started talking debt ceiling in 2009.

I hope all those yahoos can get it together and figure something out. But like they say in the country...wish in one hand...
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e_doe
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Posted: 11/14/2012 8:52:57 PM
@ freecharlie, i should have used quotes for "tax increases."

My taxes would be higher with the R plan than the O plan. And $2200 more than the O plan if we do go off the cliff!
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TravelAgent
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Posted: 11/15/2012 1:38:22 AM
Hmmm, not what I wanted to read when I'm trying to get back to sleep at 2:30 in the morning.

Well, now at least I'll know why I'm awake.

Julie



sharonmnc
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Posted: 11/15/2012 5:48:01 AM
Huge tax increase. It's going to be ugly. Small business is going to be hurt in a big way.


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Posted: 11/15/2012 7:13:38 AM
Bush tax cuts expiring will hurt. $3,000 increase. Ouch.

Republican and Obama plans are the same.

I did the detailed questions. When I did basic I had different answeres for the Republican & Obama plans. Scenario one stayed same.

Dana


Gail OH
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Posted: 11/15/2012 7:28:35 AM
will take a look when I get back home...


Gail

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Posted: 11/15/2012 7:38:43 AM
Obama tax plan is the lowest for me. Republican is higher, though not by too much. Bush tax cuts expiring completely is our worst case scenario.

amblet
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Posted: 11/15/2012 7:41:20 AM
Like most people I this shows that I would be hurt the most if the tax cuts just expire. Would be better off under the Obama plan than the Republican plan by a couple of thousand dollars which to my family is quiet a bit. I am doing my best to lower my taxable income by putting as much as I can afford into my HSA and my 401k.




PghScrapper
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Posted: 11/15/2012 7:43:58 AM

Bush tax cuts expiring will hurt. $3,000 increase. Ouch.

Republican and Obama plans are the same.

I did the detailed questions. When I did basic I had different answeres for the Republican & Obama plans. Scenario one stayed same.

My results are almost identical to yours.



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Sunshine36616
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Posted: 11/15/2012 7:45:06 AM

Obama tax plan is the lowest for me.


Me, too.



Lilyloams
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Posted: 11/15/2012 7:47:52 AM
Rep and Obama plans came out exactly the same for me, and the first column was several thousand higher....

missbitts
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Posted: 11/15/2012 7:53:49 AM
Not worried, prepared.
Up in all scenarios, although running the numbers for the "Republican Plan" is kind of silly since that will never come to pass.

amythyst
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Posted: 11/15/2012 8:01:58 AM
Holy crap. I'm really doomed.



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EricaLynn
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Posted: 11/15/2012 8:05:58 AM
If Congress allows current temporary tax cuts to expire, your tax burden will be $6,435 higher next year. You'll take home 4% less. <---this does not make me happy.

ETA - with Obama's plan we go up $3500, with the Republican plan $3800.

Still not happy.

Shevy
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Posted: 11/15/2012 8:22:53 AM

I pay a bit less under the Obama plan than the Republican plan, but my effective tax rate is pretty similar under both plans.


This is me too. And I wasn't shocked by any of it. There's been enough information in the media for months about what would happen. If you're listening and informed, you realize that there may be changes and you need to account for them.



Anna*Banana
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Posted: 11/15/2012 8:30:41 AM
Huh, I thought it was patriotic to pay more taxes. That's what Obama said. Using that logic his tax cuts are unpatriotic.


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CnBsmommy
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Posted: 11/15/2012 8:30:47 AM
Ouch! We've cut spending, saving even more, put off buying a vehicle (with cash).

dulcemama
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Posted: 11/15/2012 8:53:40 AM

Huh, I thought it was patriotic to pay more taxes. That's what Obama said.

You know what? I agree with this. I'm on a pretty tight budget already, but I don't mind doing my part. I mean, I don't really like it but it's part of living in society.




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EricaLynn
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Posted: 11/15/2012 9:01:30 AM

Huh, I thought it was patriotic to pay more taxes. That's what Obama said.


You know what? I agree with this. I'm on a pretty tight budget already, but I don't mind doing my part. I mean, I don't really like it but it's part of living in society.



I tend to think that my 25%+ is plenty patriotic. I don't feel patriotic giving any more thankyouverymuch.

keriwestpartdeux
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Posted: 11/15/2012 9:04:20 AM
The tax cuts expiring hit us pretty hard. We're prepared, but we don't have to like it.



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Posted: 11/15/2012 9:11:35 AM
The Bush tax cuts ( 2001 & 2003 ) were passed under reconciliation in the Senate which means by definition they were meant to be temporary. And the first one was before 9/11/01. I remember Mary Matalin (who was in the Bush white house) saying they were passed because they had inherited a budget surplus and she said that money needed to be returned to the "people."

The Bush tax cuts are more responsible for our budget deficit than anything else -- bigger than the two unpaid wars, bigger than Medicare Part D.

So what does temporary mean? You fill in the blank.


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raindancer
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Posted: 11/15/2012 9:31:42 AM
I guess what I don't understand is how people think we are going to pay for everything if taxes don't increase? I am smack in the middle, and I agree that there is a lot of waste and over spending that needs to be reigned in as well. But that does not negate the fact that taxes can't stay stagnant.

It has to be both. The sooner we figure that out and DO it then the sooner things can get better.

The R's need to get over it, move forward and stop finger pointing here. You don't want to hear about it from the Dems over the Bush era, but you are doing it now, and in response your representatives are acting like idiots. We need a budget. We need to act like the adults we supposedly are, and get things on track.

It has to be compromise. Spend less, but pay more too.


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AthenainCA
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Posted: 11/15/2012 9:32:00 AM

First, they aren't Obama tax increases

Oh, yes they will be.

The tax cuts took place 10 years ago. When taxes go up, if that happens under Obama, they WILL be the Obama tax increases. Taxes will increase under his administration. That's the way it goes.

The President will have to take responsibility for something at some point.


Spend less, but pay more too.

This may be the answer, but you can't tax one small segment of the taxpayers who bear the burden of most of the taxes paid as it is and solve our fiscal problems. The fact that nearly 50% of taxpayers do not pay any federal income taxes is a problem. It just is.

[Edited]


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Posted: 11/15/2012 9:38:43 AM

I guess what I don't understand is how people think we are going to pay for everything if taxes don't increase?


We don't. That's as simplistic as telling a family in foreclosure that they need to make more income. At some point, it just becomes impossible to bring in more money.

We (those opposed to tax increases) think that the budget should be cut.

Personally, I'm not opposed to reasonable taxation, but I'm not in support of handing over our hard earned money to a government or state with a really poor record of handling money and making poor choices with the taxes they do receive.


Carla




peapermint
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Posted: 11/15/2012 9:43:56 AM
My scenario is quite a bit better under the Obama column. $3000 less in taxes and 10% rate vs 12% Repub or 15% expiring.

Regardless, though, I think more taxes need to be paid and I was well aware of the Bush cuts expiring. I don't see any of it as Obama's "fault."

What are the situations of people whose taxes are going up? Higher income? Lower? Business owners? We make about $52K through salary and self-employment.


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blondiek237
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Posted: 11/15/2012 9:45:43 AM
I'm pulling up a chair next to burningfeather

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Posted: 11/15/2012 9:47:38 AM

Personally, I'm not opposed to reasonable taxation, but I'm not in support of handing over our hard earned money to a government or state with a really poor record of handling money and making poor choices with the taxes they do receive.


^^This is my stance too. I would be willing to pay more taxes, but NOT if the government doesn't cut spending. The entitlement programs in this country are completely out of control (budget wise).

Maizie
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Posted: 11/15/2012 9:48:45 AM
Nope! Welcome to America, taxes and all



AthenainCA
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Posted: 11/15/2012 9:51:06 AM

Personally, I'm not opposed to reasonable taxation, but I'm not in support of handing over our hard earned money to a government or state with a really poor record of handling money and making poor choices with the taxes they do receive.

Exactly.

When the President says things like those people (aka "The RICH" ) "don't need" the money, I absolutely see red. That seems to come from the premise that it's the government's money to begin with that it deigns to "let" people keep.

IT'S NOT THE GOVERNMENT'S MONEY!!!



scorPEAo
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Posted: 11/15/2012 9:54:53 AM

I pay a bit less under the Obama plan than the Republican plan, but my effective tax rate is pretty similar under both plans.


This. I will cope. It's not that big of a deal.



sharonmnc
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Posted: 11/15/2012 11:20:15 AM

I guess what I don't understand is how people think we are going to pay for everything if taxes don't increase?
Grow the economy so the tax base is larger. That happens when people have money to spend. They spend it and the merchants are taxed on the income. The merchants pay employees who are also taxed on the income and who, in turn, spend the money an so on.

Or, we could just send all our money to Washington so they can decide how to spend it. Trouble is, as Margaret Thatcher put it, eventually you run out of other people's money. It's tragic that we're rushing toward a system that is failing all over Europe as countries run out of money and our citizens don't even understand the economics of it all.


Sharon

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amybaby
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Posted: 11/15/2012 11:46:03 AM

I guess what I don't understand is how people think we are going to pay for everything if taxes don't increase?


The solution is to quit spending so much money! Our government shouldn't have its nose (and money) in every industry and business in America. Our government was originally established to protect our country and keep order. Not pay for schools, retirement, welfare, etc!

I'm not saying that all of those things should be gotten rid of - but we can certainly spend less and get out of areas we shouldn't be involved in. Space exploration? Really? Bailing out failing companies? Uh, no. Get back to the basics and QUIT SPENDING.


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susanlk
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Posted: 11/15/2012 12:01:20 PM

Grow the economy so the tax base is larger. That happens when people have money to spend. They spend it and the merchants are taxed on the income. The merchants pay employees who are also taxed on the income and who, in turn, spend the money an so on.



+1


Susan


missbitts
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Posted: 11/15/2012 12:02:17 PM

When the President says things like those people (aka "The RICH" ) "don't need" the money, I absolutely see red.


Me, too, because the potential for that kind of thinking to keep expanding is dangerous. If we say today that those who earn more than $XXX don't need it, then we can slowly move down the ladder. I'd be willing to bet that almost everyone on this board has more than they need to survive. Who gets to determine how much someone needs?

AthenainCA
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Posted: 11/15/2012 2:56:52 PM
Okay - so people want to tax "the rich". Why not take the 35% top marginal tax rate back up to 39.5%? Why not increase capital gains taxes from 15% to 20% for those same earners making over $250,000 a year?

But added on to that 4.5% increase in federal income taxes and that 5% capital gains taxes is another 0.9% Obamacare tax that kicks in as of January 1, 2013. There's also another 3.8% Obamacare tax (specifically cited for Medicare) for those same earners on unearned income that also kicks in on January 1, 2013.

It's far from a simple 4.5% increase. It's more like a 9.2% increase. If you also stop the cap on Social Security, there's an additional 6.2%

If we are going to have an honest debate about the situation - include everything.

Now, I get some of you are still A-OK with this. But I seriously don't understand having programs that are funded in large measure by 2% of the taxpayers. It's sickening to me.

ilovecookies
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Posted: 11/15/2012 3:16:16 PM
Not worried. In our household, we always knew Bush's tax cuts were not sustainable for the long term, and we have been anticipating the return to higher tax rates.

Interestingly enough, using the calculator in the OP, it's the Republican plan that will cost our family more in taxes. So much for the Republican claim that they won't just stick it to the lower-middle and middle class wage earners.

Whatever plan goes through, we've been planning for the higher tax rate.

If people are really as worried about being fiscally responsible as they claim, it's time to admit that it will take *both* spending cuts and a return to higher tax rates.



tinaev
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Posted: 11/15/2012 3:24:13 PM
I am slightly better off (only a couple hundred dollars) in the Obama column according to the calculator.

clee321
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Posted: 11/15/2012 3:26:27 PM
I think it will require changes in Tax Code so people are not getting back MORE than they ever paid in. I DO NOT UNDERSTAND how ANYONE can justify that.

$7500 in a return but you paid NOTHING AND you were on public assistance??? Exactly how does that work???

I am tired of hearing about "fair share" for the "rich people" but those milking the system are somehow untouchable - a protected class.

And my family isn't anywhere near the 1%



drewsma
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Posted: 11/15/2012 3:35:56 PM
I don't mind paying a little more if everyone else did, too. Problem is NOT everyone pays federal income tax. IMO, everyone needs to pay something.

sdt
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Posted: 11/15/2012 3:52:54 PM
same tax rate 20% but somehow save about $2000 on obama plan
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