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Will losing $5,000 next year affect your cardboard purchases ?
edmundfitzgerald
Posts: 4,306 ✭✭
For those of you middle class earners with kids, chances are you will be losing anywhere from 3-6k next year in tax increases.
Will this affect your hobby buying ?
Will this affect your hobby buying ?
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Even if we go over the cliff Obama plans to cut those taxes on the middle class right away.
I am not being political in anyway with this statement.
I appreciate that, and I"m not political either on my poll. The fact of the matter is that everyone will be losing money next year.
Depending on how everything turns out, it looks like 3k will be the minimum over the next year or two. 6k or higher would be under
stressful circumstances over the next year or two.
Specifics right now are sketchy, but there is one likelihood for sure, that everyone will have a smaller paycheck next year, unless your business or job is booming, then congrats.
I would be affected, but I don't think it would change my purchasing behavior too much. Most pundits agree that the AMT problem is one thing that both sides agree on, so if we come to a mini agreement in the next month, the patch to AMT would be one of the items addressed.
As personal income tends to rise each year, an ever greater number of taxpayers are finding themselves subject to the AMT. This is primarily due to the lack of indexing of the AMT rates (starting at 26% and going to 28%) and exemption amounts, while regular income tax rates and exemptions have steadily increased with inflation through the years. Other factors which can increase one's vulnerability to the AMT are incentive stock options, large capital gains, large amounts of certain itemized deductions, and large families with a high number of personal exemptions.
Congress has passed 14 annual AMT patches since 2003 to raise the AMT exemption amounts and thereby reduce the number of taxpayers subject to its sweep. Currently, for the 2011 filing year, the AMT exemption is $74,450 for joint filers, $48,450 for unmarried persons. The exemption is phased out for higher income taxpayers. The 2012 AMT exemption amounts have reverted to their levels in tax year 2000 ($45,000 for joint filers, $33,750 for single filers). It is far from certain that additional AMT patches will continue to be passed, causing this reduction in the AMT exemption amounts to vastly increase the number of taxpayers subject to the AMT.
<< <i>Where's the "The sky is not falling and I will not be losing $5K option?" >>
Regardless of whether President Obama and Congress reach an agreement to avoid the “fiscal cliff,” many Americans will see a higher tax bill because of the expiration of the payroll tax cut, which was enacted in 2011 as a temporary measure to boost economic growth. The tax holiday was preceded by a similar temporary cut in 2009 and 2010.
If I earn 100k a year, I will pay an extra 2k in this new tax increase.
My wife who earns 50k a year will pay 1k extra.
If you're only earning 50k a year and no one else in your family has an income, then you only lose 1k.
But at a 50k income level, you are not a big spender on cards anyway.
Throw in Obamacare and a possible child tax increase, along with other possibilities, then big earners (who spend big on cards) have
a real possibly of 3-6k in tax increases, with 3k as a minimum just on the tax expiration increase, which as it stands now, is going to take place no matter what.
Is it more a case that Obama is a dangerously radical Kenyan Muslim Socialist or are the GOP members of Congress just that much more patriotic and freedom-loving than those slimy draft dodging Democrats?
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This whole going over the cliff game is a government created buying spree for the rich and connected in the world!
And more new Obamacare taxes to come in 2014.
Not surprised not one Republican voted for it.
On the political front.....I have my preference of parties, but I do so knowing that NEITHER party is looking out for my, or the American people's best interest. A measly 2% payroll cut is so small that it doesnt have any effect on the economy, the BTC also is small on the middle class side. Right now, we have a choice between a party that wants to steal money from us and a party that only promises not to steal as much. Choosing sides is ok, but thinking that either side is helping the poor or the middle class is a joke at best
Collecting 1970s Topps baseball wax, rack and cello packs, as well as PCGS graded Half Cents, Large Cents, Two Cent pieces and Three Cent Silver pieces.
"No, not at all. I continue to spend the same." and "My situation is fine, so it's all systems go for me."?
<< <i>What's the difference between:
"No, not at all. I continue to spend the same." and "My situation is fine, so it's all systems go for me."? >>
The 1st one is for the person who will be losing money, but will spend the same.
The 2nd one is for the person who will be doing fine, perhaps their business will be even better next year, and "all systems go" refers to someone
ready to take on even more. Sorry about the confusion.
If one cannot tell the difference between an Orc and a Hobbit , they are a very sad human indeed .
To but it in a form a bit easier , if the Yankees were playing the Dodgers in the world series , where would be the last place you would expect to find a member of the other team ? --- Sitting on your bench.
Again , if one cannot tell the difference between an Orc and a Hobbit , sad , sad , sad .
I've heard it said " Even a child is known by what they do , whether they are good or evil."------ Sonny
<< <i>The point is moot as an agreement has been reached... >>
an agreement that incurs no cost to me and anyone else on this Board?
<< <i>Think this economy is about to take a 360 degree turn making collectibles ready for a major buying opportunity if you still have any left over money and a job!! Ready to pick up PSA 10 86' Jordans for $5,000.00.
>>
So you think the economy will stay exactly where it is? Because 360 degrees is, you know, a full circle.
<< <i>
<< <i>The point is moot as an agreement has been reached... >>
an agreement that incurs no cost to me and anyone else on this Board?
The House can still screw that all up for you.
EAC 6024
<< <i>For those of you middle class earners with kids, chances are you will be losing anywhere from 3-6k next year in tax increases.
Will this affect your hobby buying ? >>
These conversations only make sense when you speak in terms of percentage increase, not dollar increases. You can't make a statement that "chance are you'll be losing anywhere from $3k-$6k next year, since the impact of the payroll tax increase and the reversion back to Clinton-era personal tax rates will impact everyone in different ways, based on their family's income. Also, there is no such thing as a "child tax" or a "child tax increase".
Always buying Bobby Cox inserts. PM me.
al.
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