The Tax Man Cometh – And Its Our Own Fault
by Thomas D. Segel
Oct 31, 2010
There is a darkly humorous one-liner going around that says it all…”Taxpayers should vote Democratic, just like chickens should vote for Colonel Sanders (KFC) “. In either case the voter is sealing his or her own fate. Only days remain for you and I to change what is looming in our future. If we don’t put a mechanism in place to change the direction of our nation everyone can plan on living in a bleaker country.
As things stand in today’s United States of America, on January 1, 2011 every single one of us can expect to be placed squarely in the center of the taxman’s radar.
Because it takes the government the longest of time to do just about anything, our withholding instructions for the coming year are already being written. Remember, Congress left Washington without doing a thing to repair next year’s rates, so those tax reductions and credits everyone has enjoyed since the Bush Administration automatically end.
In January 2011 those in the 10% bracket move up to 15%. The people who pay their taxes in the 25% bracket will start paying at 28%; those who have been paying 28% will find their tax load has become 31%. Taxpayers in the 33% bracket move to 36% and finally the people fortunate enough to be paying taxes at the rate of 35% will find their bracket has risen to 39.6%.