Did you think about your 2009 tax bill yet?
Submitted by Worth Blog
Written by Michael Vass
So I was just thinking about something interesting. Obviously President Obama has made a big todo about his Stimulus package. He gave everyone who receives a paycheck (and only those people) some $500 - over several months. In addition his Administration gave out $4500 to those that bought a Government approved vehicle.
But has anyone stopped to consider that all this money is income? When I say income, I mean as in money added to your net on your IRS tax forms. I mean that this is money that you are responsible for, and how it affects your tax bracket.
You could even possible include the $8000 home credit, but I believe that is offset by other factors in buying a house. Still it is also income as I understand it.
Thus it is possible for someone to have gained up to $13,000 on their annual income. This is of course money that NO tax was paid on. So it is separate of any gross amounts that you have made. Which can make a major difference.
Consider this, a person filling with $20,000 net, would now be in the higher $33,000 tax bracket if they received money from all 3 programs. Thus any money they might have expected to receive from a IRS tax refund, will instead turn into a tax bill they need to pay in 2010. And that would be a burden on top of the rising cost of living, the increase (of some 150% or more) to gasoline and electricity prices, and other Obama Administration goodies - like Health Care Reform.
Obviously few would fall into that category. But many more will fall into the group that gained $500 to $5000. And that still makes a huge difference. It’s the kind of money that has already cost families across the nation $38 million in food for their families.
Isn’t that wonderful? 344,000 families denied food because of Democrats speed in passing a Stimulus Bill that no one read, and President Obama insisted on. It’s no surprise that this was not something the major media focused on. Pets like MSNBC would never highlight such a dramatic failure of President Obama’s Administration.
But I have to wonder, will they warn the public about the likely tax ramifications that will be due April 15, 2010? Are they going to give all those people counting on a IRS tax refund the chance to consider if the Obama money is going to increase their tax burden? Especially since many people of all income brackets count on that refund to help pay off the Christmas gifts and other bills they are incurring over the holiday season.
I don’t think so. The Obama Administration is desperate to have 4th quarter numbers that show some sign of a false recovery. That means they need the public to buy and now. The chances for Democrats to be re-elected ride on this. Thus hiding the truth - like presenting false Stimulus job numbers, calling a 3 million person increase in unemployment job savings, and tying the need to pass Bills like Health Care Reform to job growth - is just par for the course.
So take heed of what I am saying. Ask your tax professional what the impact of the money from the Obama Administration and Democrats means to your IRS bill. Find out if you really will be able to afford all that Christmas gift buying. Because finding out after the fact may be far worse than a lump of coal as a gift.
And just wait. Next year, if Democrats and President Obama have their way, you can have the extra joy of knowing you will be required to spend even more of your money on health care insurance - even if you don’t want it or can’t afford it - and quite possibly massively more for your energy bills. I bet that will help you buy gifts next year, and increase jobs too.
Not to worry though. Democrats will take care of you like a child on an allowance. Look for another Stimulus package to hook you into even more IRS taxes and increase your dependency on Big Government like a crack addict.
