Tax Increases Likely to Hit You Soon

Expiration of the “Bush Era tax cuts” is something that is discussed in the news quite frequently. Due to a technical legislative rule, known as the “Byrd Rule”, named after the late Senator Robert Byrd from West Virginia, many of the tax laws passed by Congress during the George W. Bush Administration will simple disappear if the current Congress does not act to extend them before the end of 2012. Contrary to common perception, this will not just cause an uptick in the taxes of the wealthy; this will cause an increase in nearly every American taxpayer’s tax bill. Take a look at this article from SmartMoney.com and I am sure you will agree that your own situation will be impacted by the expiration of these tax laws. The big question is whether Congress (and the President) is willing to play with tax policy in an election year. Only time can answer that question. In the meantime, it may make sense to plan your finances under the assumption that your paycheck will shrink in 2013.