Watch out for tax hikes
I heard a heart warming “deficit reduction” speech the other day from the White House. I found it quite interesting in that a mixture of a tax increase and a reduction in spending, to balance the Federal budget.
A tax increase is not quite accurate. We already have had an increase in taxes for everybody. Let me explain.
According to the IRS Publication 15 (Circular E) Employers Tax Guide For use in 2011, a married person making $1,150 a week ($59,000 per year) with zero deductions will pay $134 a week in federal taxes. Last year, $1,150 weekly tax was $123 a week or 9 percent less. This is a tax increase for the year 2011.
So, I take it to mean the president wants another or a second tax increase, not a (singular) tax increase.
Why is it so hard for the White House to accurately state the facts in speeches and news releases? I find it hard anymore to believe anything from the White House.
Citizens be warned, your taxes have increased 9 percent this year, so do not be caught with too few deductions in your withholding. Next year, may be a painful experience with your tax preparer.
Duane Borchers Sr.