A news story that just broke this evening less than a few hours ago in the New York Times Online that the Administration is going to seek to have taxes on those earning over 250K a year increased to pay for Health Care. It will be introduced this Thursday as part of the new budget proposal. This is not good, not only does it apply to the individual, but to combined joint income of spouses, and more importantly to over 60% of mom and pop businesses across the country. Personally I think this could not come at a worse time. What a government can give, it can also take away from its citizens. It is part of the administrations plan to redistribute income from the wealthy to those that are presumed not so affluent. The proposed revenue of this tax increase will account for over half the 634 billion in healt care set asides.
While 250K sounds like a lot of money, it will apply to most small businesses in the country that have even a good number of employees. For husbands and wives in real estate it will start eroding their income. The interesting item I find in the story is that at no time has an economy every got better by making things comfortable on the bottom. Opportunity and profit are more likely to occur with risk as opposed to those that are comfortable punching a time clock 9-5. So the question will be to entrepreneurs..."Why bother?" Where is the incentive to take risk?
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I think Obama is starting to be the worse thing America needs right now. You can't spend outrageously, expect to balance the budget, solve the economic crisis, and help the world out all at once. We need to concentrate on the problems at home.
I guess we will have to be sure not to make that much money. I wish we had free health care.
Jim this is their answer for everything. Tax the rich. Penalize the achievers. We have to reverse this course soon or it will be too late.
I'm sure by the time they are done EVERYONE who WORKS will be paying more...
Russ Ravary - Michigan Homes for sale - Michigan Real estate & Mortgage info (Remerica Hometown One) I'd hate to see many small business owners that are just hanging on to be pushed over the edge right now. This is why most of the companies left the USA and they outsource. We have a very high corporate tax that is not competitive in the world.
Lizette Fitzpatrick - Broker-Realtor® Lizette.US - Kentucky Residential Homes (Lizette Realty - Lexington KY - Richmond KY) Lizette, in real estate we do not have health benefits, and now we will have to provide them to others.
John W Walters Slidell LA real estate Slidell Louisiana Homes (7824 Real Estate of Louisiana,LLC) I don't know why most persons did not see this before htey went in the voting booth. Just think...the congress will rubber stamp this.
Michael Klijanowicz - Relocation Specialist - Baltimore & Harford County (Baltimore & Harford County Maryland - Long and Foster ) Maybe 2 jobs will be the answer.
I am sorry but I don't agree at all. I wish I was only that lucky to to worry about my taxes going up because I make too much money. I came from Poland and I was always against public health-care. But that was in 90's when I paid $15a week for insurance, I didn't know what pre-existing condition is and when I had my kids I spent $10 for the whole pregnancy. Since 2000 insurance in this country got sooo bad( and don't get me wrong, I LOVE AMERICA), every time I take my kids to doctor ,I am thinking what new my insurance comes up with it not to pay.
And coming back to $250,000....If I didn't own business I wouldn't know but I know now that as business you have so many deductions(including payroll ) that you have to be big, not small business to actually make $250,000 a year.
HELLO JIM,
Funny you posted this today. My husband and I met with our accountant Monday. We are okay this time (due to my real estate earnings being much less than previous years), but unless I increase my income substantially, I may as well quit working. Without going into detail about our earnings, we would be better off if only my husband worked unless I could earn over $50,000 to $100,000 more. That may be doable but what if I fall short and we end up having to pay additional taxes? Is it worth it? It really made us think.
Anna Chroscicki Realtor St Lucie County affordable Real Estate (Century 21 Duncan & Associates) Well said, but in many small businesses that 250K profit margin is also their cash flow to pay employees. In real estate many brokerages are sole proprietorships. We pay taxes but are not entitled to benefits. No unemployment, no workmans compensation, and guess what no rebate checks either. No one has had more medical bills in life than we did when my kids were growing up. We had the 15.5% mortgage and had the bills we could not pay. We've been there, and understand it is no picnic. I also remember the taxes in this country back in the 70's. THere was the 50% marraige penalty tax. On paper as a new couple we earned 80K a year and paid out over 50% in taxes. America is going backwards. If you think things are bad now, wait.
Terri Griffis Realtor GA & AL, Columbus, Ft. Benning, Lake Harding, Phenix City (Shepherd Brokers.com GMAC Real Estate) Sounds like we have the same accountant. More taxes will make the choice much easier to make for most persons.
Not only is it a ill conceived policy, it's coming at exactly the wrong time. Where the devil do these buffoons think everything great in America has come from? It certainly hasn't come from the Joe sitting at home waiting on his welfare check. Trickle up economics is just a fantasy.
Fairbanks Ak Real Estate Broker Jesse Clifton 907-699-6024 (Jesse & Kathy Clifton, REALTORS) Jesse you and I view it that way, but what if this is really just a 'power grab?' What if the only purpose in this is to buy votes for future power? I personally believe this budget proposal has nothing to do with the health care of the nation.
Jim,
It just seems to get worse by the day. Thats all I can say I am so angry!
Alice Linahan (Keller Williams) You are not alone. It really feels like a total betrayal of government. You work your entire life to achieve so the shiftless government can redistribute it?
It is sort of like how homeowners that took on 2 jobs or more to meet their obligations must feel when their neighbors get relief and they lost their home. They did everything right, and the buyers that put down nothing gets the helping hand. Not very fair, when to add insult to injury all the honest hard working people will pay the bill twice.
Jim,
I heard that on the radio today. You know, we are just spending, spending, spending. It seems like everyone is taking advantage of this spending orgy to get everything they want in, while we are woozy and on the ropes from all the scarey stuff going on.
Where I live in Bergen County New Jersey, $250,000 is about what you need to make just to live here. Median home prices are between 500k and 1.2m in most towns. Some towns even higher.
My real estate taxes are close to 30K alone. There should be an adjustment for income scale for where you live.
I don' t think the Dems care about the consequence or they may assume the consequence will allow them to garner more power, due to an excuse that it is to save us.
It is like the robber saying while he has a gun to your head, If you get hurt it will be your own fault!
Richard
Richard Stabile Bergen County New Homes Builder Realtor (REMAX real estate associates) Richard great analogy! The politicans have a gun to our heads holding us up, and they are saying "Don't make a move or we'll shoot!"
It is Time for Common People to Take a Common Stand!! Get involved and take a Stand!!!
Angry Citizens Across U.S. Revive Boston Tea Party Protest
02-27-2009 8:54 am - KAKE
Dateline: Wichita, Kansas
"Let's go back to the founding fathers. Basically, this is a land bound tea party, but it's a populist revolt against the 'porkius bills,' I like to call it."
Alice Linahan (Keller Williams) Great video! Thanks for sharing. This is what persons need to start discussing.
I wonder if there is agent out there that understands how wrong is all you are talking about. Lets say I am being selfish - where do you think we are getting buyers right now with mortgage crunch. I think from all those bad, little taxes paying workers, who get their hours cut, hourly pay cut, being pushed into working harder than ever. And don't say" They can quit", because they can't. Because they worked at job for 20 years( lets say 50 years old), they can't re-train and make half of what they were making. Yes, we don't get unemployment. In Florida unemployment reaches ( I think around $500 biweekly). If you were making $1000 a week it will put you out of your house anyway and you make too much to get medicare( even for kids).I didn't want to get "party political", but when somebody said something about Democrats ,I will. They fight for "small people"- not welfare, for making sure that we are not going back to slavery( that is what big company would like). Capitalism is right now just for rich and corporations( How is it that car dealer may not sell you a car, just because you are not US citizen- because Mercedes can make more money on you in Europe, but insurance company may sell cars after accidents all over the world. How is it that you have to go bankrupt to open small business, but Wal-Mart is getting paid to open store in you city. And except for giving job for China, they are not giving much more.Or no money for education......yes, lets go back to dark ages when few rich and clergy were ruling the world, because those were the only that could afford education. And there is so...much more that it hurts to think about and I know I am going to get slammed, but I am happy I can say what I think.
Anna Chroscicki Realtor St Lucie County affordable Real Estate (Century 21 Duncan & Associates) People wonder why all hte jobs left America, but do not want to speak of the corporate taxes they pay here in the USA are higher than most places in the world. As a nation we do not manufature anymore, we are in a service sector economy that has no work. If they tax business more, and they close...where will the money come from? Money comes from somewhere, and it doesn't grow on trees.
By the way the $8-12 extra a week the government is giving the middle and lower class...it is a credit. It must be claimed next year on your taxes as income.
That is all myth about corporate taxes being one of the highest in the world. If anybody compares US to any country in Europe - think again. In Europe for every worker company hires( not huge company, even if it is just you and your wife) you have to pay government tax so you can have national insurance( even if you are not making any money). Do you know how many weeks of vacation somebody in Germany or Poland has per year? - not weeks...months. Do you know how many months after giving birth women stays at home in Europe? - not months....years....Do you know how many sick days a year worker in Europe may take? As many, as many times he is sick. And who pays for all that? Well, I think corporations. So, maybe " Corporate Tax" by itself is higher here than , lets say Irland, but if company in United States gives after 20 years, two weeks vacation and 2 sick days a year and three months of "stay home" after having child and lately not even that, because .....why not start employing everybody part time and not pay any of those benefits. So, that is how we stand. And hopefully, nobody will say" Well that is just Europe", because I don't want to compare my country to India or China. That is not reason , we do not manufacture anymore. We don't , because of not fair trade agreements, because like you very well put it , somebody decided we will be SERVICE NATION( ha, ha, ha) but, again well put- money doesn't grow on trees . It is so easy to fix.....