Congress is raising your taxes.
By not doing anything at all the Democrat controlled congress is working hard to put the proverbial bullet in the head of the American Economy. How?
Way back in 2001 and 2003 tax cuts were put in to effect. Because of the crying and bellyaching by the socialist Democrats that the tax cuts were for the "rich," time limits were placed on them.
Since then the United States has been enjoying a period of unparalleled growth DESPITE, a major terrorist attack, the worst natural disaster in history (hurricane Katrina), the second worst natural disaster in history (wild fires in the west), a major military campaign, AND several major corporate scandals that rocked the financial world (Enron, Tyco). All of this went on, and we only had a slight economic slowdown during the terrorist attack. Incredible growth! Incredible wealth was gained.
During all of these problems the unemployment rate never went above 6.2%. Economists state that anything under 5% is full employment. We have been below 5% since December of 2005!
Even the Government has benefited. Government revenue is higher than it ever has been. Why? Because people and businesses are making more money thus they are required to give more of it to the Government.
All that is about to change however. In 2009 some major cuts are about to be erased. On January 1, 2009 Capital Gains Taxes will raise to 10% to 20% based on income.
On January 1, 2009 Dividends will raise to normal standard rates.
Investment in the stock market will decline, because with such high tax rates, it becomes near impossible to make money with out extreme risk.
On January 1, 2008 Small Business got hit when the maximum amount they can deduct dropped from $100,000 to $25,000. Expect prices to climb to compensate for the increase in expense.
The real pain will hit on January 1, 2011. That is when the Marriage penalty comes back, the 10% bracket goes away, child credits shrink to $500 from $1000, the Death Tax exemption drops, and EVERY tax bracket goes up 4.5% to 5%.
Happy New Year
Keep watching American Idol. Make sure you know what Britney Spears is doing. Politics is boring. Don't pay attention. OBEY!!!