What happens when the Bush tax cuts expire next year?
By jonesy123
@jonesy123 (3948)
United States
February 16, 2009 2:56pm CST
Now that Obama is set to sign this lovely stimulus package they put together... well, there is only a minor tax break in there for us to use to stimulate what's left of the economy... well, next year the Bush tax cuts are set to expire and it looks very much like the Obama administration will let that happen... at that point we all will pay significantly higher taxes...
So what do you think? Will Obama act at all or just let the tax cuts expire? If you think he'll act, what do you think he'll do? Simply extend the tax cuts? Or establish new tax cuts?
IMO, he'll simply let them expire and see what happens, lol. After all, somehow the money has to be raised to pay for the money they are handing out by the bucket-fulls right now. Of course that'll completely kill the economy... okay, just kidding. He'll let them expire and hopefully implement his own. I just wish there would be an indication of that now, because the way I see it, I have to hold on to our money as best I can or we won't be able to pay our bills when the whopper of a tax increase hits us.
Well, what do you think? And how will you prepare?
3 people like this
5 responses
@turandotty (228)
• United States
16 Feb 09
I agree, I definitely don't think there are going to be any tax cuts with Obama. A small amount of the bill is tax cuts, I'm not sure who to, but it's not enough to stimulate the economy. I'm confused as to how more money for welfare and money to other government programs is going to stimulate the economy. is going to stimulate the economy.
I'm afraid of the amount of power that is being taken away from people and put into a bigger, more money wasting government. It scares me.
2 people like this
@jonesy123 (3948)
• United States
17 Feb 09
I do agree that giving everybody just about $13, and next year just $8 more per pay check will not really work out that well. And then we are hit with greatly increased tax rates, if Obama doesn't do anything about it. Personally, I don't think this stimulus bill will do much, but now we are stuck with it.
1 person likes this
@gitfiddleplayer (10362)
• United States
17 Feb 09
Bush gave us tax cuts, B.O. will give us tax increases. I'm holding on to my money too. If you get a big tax refund and want to pay off some debt just hold on to that tax refund and make the minimum payments. Its better to have some cash that you can get instead of giving it away and there won't be any left to get.
1 person likes this
@jonesy123 (3948)
• United States
17 Feb 09
Oh, I will try and hold on to as much cash as I can. If Obama does let these tax cuts expire it will be a significant dent our paycheck. I'm sure many people don't even have that in their budget. If you think things are bad now with the economy... it will be much worse if those tax cuts expire.
1 person likes this
@stealthy (8181)
• United States
16 Feb 09
He will let them expire and won't add any to replace them which will definitely put a dent in the economy and hurt investors and the stock market. The pitiful little cut in his non-stimulus bill won't help and doesn't even apply to people like me who get all of their income from investments and there are a lot of us who do not fall in the rich category, not even close to it. My income is less than a school teachers but he will raise my taxes by a factor of close to 3 by letting the Bush tax breaks expire. Actually with companies cutting dividends and interest rates way down, my income for 2009 will probably be less than have what it was in 2008 or worse and that will probably persist for several years which means when the Bush tax cuts expire I will probably pay more taxes on half the income than I pay now.
1 person likes this
@jonesy123 (3948)
• United States
17 Feb 09
I agree. Letting them expire will hurt the economy. There is no way we'll have recovered by then for people to pay that much tax again. I hope Obama will at least extend them. He wants to be re-elected after all.
1 person likes this
@newtondak (3946)
• United States
17 Feb 09
I would sure like to know just how $13 less a week in withholding taxes (that's before you take Medicare, SS, and any state and local taxes out of it) is going to help any of us!
@jonesy123 (3948)
• United States
17 Feb 09
Lol, I have no idea either. Although it is my understanding that you will get it pure, no deductions due to other tax, SS, etc). Anyhow, whatever you get, hold on to it, if you can, because if the Bush tax cuts expire your tax rate will be much higher. So many people forgot that Bush implemented tax rate decreases after he took office to stimulate the economy which took a downturn at the end of the Clinton era. When that is gone... I don't think many people even have it in their budget. Their pay checks will be significantly less.
1 person likes this
@koalatbs (2229)
• United States
1 Mar 09
Hi jonesy123 - I think that the next few years are going to be extremely difficult for all of us financially. I do not think Obama will continue to keep the Bush tax cuts, as they were anyway. I think he will implement a newer system of tax cuts for the poor & middle class AND tax increases on the wealthy. It is still going to be a long road for all of us though. I assume that the economy will get worse before it starts getting better... unfortunately.
