I’m writing this on the eve of the election. Every election is historic, but in my
lifetime, I don’t recall any election quite this close except for the 2000
contest between George W. and Al Gore.
Could we be using the term “pregnant chads” all over again?
Nevertheless, please go and vote, but make an informed
choice. I am proud to say that I have
voted in every national election since I turned 18.
I will say that I will be very thankful when all of the
election ads are over! And the phone
calls! And the mailers! Talk about overload!
Still, no matter who wins, there is going to be an effect on
your wallet. The candidates like to talk
about how this election is really a decision on the direction of America .
But there’s one direction that your taxes will go – UP! Even if you are among the bottom 99% in the
country, you will pay more.
Two major areas that will affect all people, plus one that
will hit a lot of people.
1.
FICA/Social Security taxes:
Working people have been enjoying a 2% reduction in
FICA/Social Security taxes that the President enacted to help people with the
recession. That provision expires at the
end of this year and neither candidate wants to extend it.
On Jan 1, your paycheck will shrink slightly.
2.
Tax deductions:
Both candidates also want to limit the amount of tax
deductions you can take. Limiting
deductions means increasing the amount of income subject to taxes. And that means higher taxes for you!
As you fill out your tax return next April, expect that
refund check to be smaller, or owe more.
3.
Student loan interest deduction
Though not mentioned often, if the Bush tax cuts expire, the
deduction for student loan interest will end.
This has gotten very little press, yet at the same time, the
national data indicates that many have student loans, and those balances have
been getting bigger.
Overall, a nice summary of the tax policies of both
candidates is here.
If you believe the political ads, people are quite vocal
about who they are supporting. The
country is divided, and there is a lot of mud slinging.
To me, it’s nice to know that although we have our
differences, we will be as one in paying higher taxes.
No matter your party affiliation, get out your wallets.
