OK, I want to set the record straight on the announced "Tax Cuts" today.
Basically, most people have an amount of their pay withheld by the government over a year, then at the end of that year... you "file" or ask to get the government to give you back what you over paid them. I think the average person overpays the government around $1,200 give or take in a year.
So today's announced "tax cuts" are not actually tax cuts in that you will be paying less to the government over a year. What today's announcement is and should be reported is this...
The government is lowering the amount a person is overpaying in taxes over a year... so at the end of the year the government will be giving you back less of your money (being as you didn't have to overpay them)... so next year instead of the average $1,200 back from the gov when you file... you'll get $800 or something.
Always remember... what you get back as a tax refund is your money that you let the government borrow interest free from you and you have to hope they let you have it back every year.
Also of note very soon, if you work in a small business, the average boss, or the owner of the small business will be paying 15 percent more in his taxes... wonder if business will pick up in time to make up the difference... seeing how the economy is forecast to retract 8 percent over the next year or so don't see how...
-z-
links...
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