Future of Taxes under Obama
Breaking from all past tradition, this election year the American people have chosen to elect the presidential candidate, in this case the incumbent President Obama. Now that we know President Obama will remain in the white house, questions are beginning to arise about how our personal finances be affected over the next four years? Economists and financial advisers across the nation have already begun such speculations with predictions of tax hikes coming in the near future and the years to come.
The first hurdle that our government will have to face is the looming and so labeled “fiscal cliff” that comes into effect in January of 2013. This financial superstorm set to hit the United States at years end will be brought on by a combination of mandated tax increases and simultaneous spending cuts that are feared to severely damage the nation’s economy until it has time to rebuild.
But while the “fiscal cliff” is the most immediate threat to American’s finances, President Obama has additional tax hikes in mind for the future. When all the various plans for tax escalation that are proposed come into effect, if they should come into effect, it is estimated that eighty percent of Americans will experience some kind of tax increase with in the coming year. These tax plans would take on average an additional $3,700 from a typical American household.
Whether or not President Obama can enact all of his proposed tax hikes does not seem to matter, the future of taxes in America looks like it will steadily increase due to previous provisions as well as from additional policies that will be imposed in the next few years.