SmartMoney.com tells how expiring tax cuts will affect you…
Some talking heads and politicians want you to think only “rich” people will be hurt when our current tax rates expire and jump automatically… At the lowest tax bracket, the tax rate will jump 50%!. The current 15% rate will jump almost 100%!. Those rates for for the lowest income brackets… Ouch!
You may have been led to believe that only individuals in the top two brackets will face higher federal income taxes when the Bush cuts go bye-bye. Not true! Unless Congress takes action and President Obama goes along, rates will go up for everyone — not just a sliver of the wealthiest Americans. The current six rate brackets of 10%, 15%, 25%, 28%, 33% and 35% will be replaced by five new brackets with the higher rates of 15%, 28%, 31%, 36% and 39.6%. Just a few months ago, it seemed like a safe bet that Congress would make a fix to keep the existing 10%, 15%, 25% and 28% rate brackets to help out lower and middle-income folks. That bet is now looking iffy.
It may be that starting a work at home business may give you tax deductions and income to help you weather these rate increases!
Athlyn on July 10th, 2010 at 8:16 pm
There are distinct benefits to working from home, not the least is the write-offs and savings in other areas.
It’s encouraging to see so many embracing this lifestyle and charting their own course.