Fed tax rate cut deal will reduce Moving Business – An Economic Insight (Chicago: coupons)

[chicagomover]

Latest federal income tax rates decease Dec. 31 and return to the higher rates in place before 2001. Limits on recited discounts also return. For example, somebody with $50,000 in taxable income after credits and deductions would owe about $900 more in 2011.

After deductions and tax credits, a single person now pays 10 percent of taxable income for a year up to $8,375, 15 percent of income between $8,375 and $34,000, 25 percent of between $34,000 and $82,400, 28 percent of between $82,400 and $171,850, 33 percent between $171,850 and $373,650 and 35 percent on income above that amount. In 2011, the 10 percent rate would revert to 15 percent, and the rates of 25, 28, 33 and 35 percent would revert to 28, 31, 36 and 39.6 percent.

Now if we try analyze as to how this probable rate cut would create an impact on the Moving Industry, there are several reasons for local and interstate moving as a whole. For example, Family, Job, Financial, Climate, Economy, Land prices, Lifestyle, Isolation and so on. Due to the above tax rate cut in 2011, with the same sort of income level, the real income will rise for almost all the income earners. So the job and associated income related interstate moving will be reduced in near future. Though the moving industry is one of the largest GDP generating industries in US, a percentage of business is certainly going to loose as there will be less tendency to move and the economy is trying to stabilize after a long financial tsunami. The moving companies will have to find different tactics to survive in this falling market. It could be discounts or coupons that may take the center stage.

The above notion is not at all wrong. We have analyzed the Moving Industry and found out that so many movers are offering discounts and coupons services in an effort to increase their businesses. Moreover as the economy is reviving and approaching towards more stable one, a number of moving companies are spending their hard earned money over the online media. They are deploying more resources and manpower to enrich their web presence. The moving companies got realized that online presence is a must to reach to the mass as their one of the survival strategies. One possibility is that the moving companies are targeting the diverse market segments like students, home-makers, environmental analysts, SMEs and alike. Hope their endeavor will fetch them better business outcome.

[tonythetuna]

What does this have to do with Chicago in specific?

[chicagomover]

Its a general issue which is applicable for all the states. Perhaps there is no thread commonly applicable for all the states.

best.

[Drover]

This is a great thread to not care about.