Are we going over the cliff? (wage, Christmas, health care, Obama)

[hooka]

Good by 2012 but are we going over the fiscal cliff and what do you think it will mean for you?or

[NoJiveMan]

[Ivorytickler]

Originally Posted by hooka

Good by 2012 but are we going over the fiscal cliff and what do you think it will mean for you?or

I think we are. I think it will take several weeks to see the outfall though. It's not something we'll see in one day.

I think people are already positioning for going over the cliff. I think that's why we saw dismal Christmas sales and why no one is in the stores for the after Christmas sales (I had to go out on Dec 26th for one last gift and was stunned that the stores were empty.).

I will cut back. I will hold off on buying a new car (mine is 12 years old with 140K miles on it so I'm due) and I will, seriously, budget groceries. We are not planning a vacation for this year either. Also, dh and I are entertaining the idea of divorcing for tax purposes.

[DRob4JC]

Originally Posted by Ivorytickler

Also, dh and I are entertaining the idea of divorcing for tax purposes.

Another reason to remove all behavorial considerations from the tax code.

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So far, the Jan. 1 fiscal cliff includes...

• the expiring Bush tax cuts
• the start of the Obamacare taxes
• the expected spike of milk prices due to the expiration of the 1948 farm bill

Is there anything else that will start up on Tuesday?

And yes, I expect no deal will be made regarding the Bush tax cuts. The fiscal cliff not only allows Obama to blame Republicans with the goal of winning the 2014 House - but the fiscal cliff also puts a blanket over the Obamacare taxes. Less attention will be paid to the loss of income because of Obamacare. There are way more incentives for Obama to allow the fiscal cliff to take place. Who cares about the American citizens when there is an election to win?

[Ivorytickler]

Originally Posted by DRob4JC

Another reason to remove all behavorial considerations from the tax code.

----------------------

So far, the Jan. 1 fiscal cliff includes...

• the expiring Bush tax cuts
• the start of the Obamacare taxes
• the expected spike of milk prices due to the expiration of the 1948 farm bill

Is there anything else that will start up on Tuesday?

It's not something I like but, reality is, the return of the marriage penalty will cost us about $4k/year. The only reason we never did it before was that I wouldn't be able to cover him on my medical insurance. Now that he's 65, he's no longer on my insurance so it's just a question of how much taxes we pay as a married couple vs. being divorced.

I think it's rediculous that we should have to consider something like divorcing for tax purposes.

[MTAtech]

Originally Posted by DRob4JC

Another reason to remove all behavorial considerations from the tax code.

----------------------

So far, the Jan. 1 fiscal cliff includes...

• the expiring Bush tax cuts
• the start of the Obamacare taxes
• the expected spike of milk prices due to the expiration of the 1948 farm bill

Is there anything else that will start up on Tuesday?

And yes, I expect no deal will be made regarding the Bush tax cuts. The fiscal cliff not only allows Obama to blame Republicans with the goal of winning the 2014 House - but the fiscal cliff also puts a blanket over the Obamacare taxes. Less attention will be paid to the loss of income because of Obamacare.

Those Obamacare taxes you write of have no effect on the vast number of Americans that have employer provided health care. The tax is on those who have no health care and won't buy any.

The cliff also includes across the board federal spending cuts.

Let's understand that we got here because the republican right-wing won't even entertain raising taxes on those earning more than $1 million --- 0.2% of the population.

[DRob4JC]

Originally Posted by Ivorytickler

It's not something I like but, reality is, the return of the marriage penalty will cost us about $4k/year. The only reason we never did it before was that I wouldn't be able to cover him on my medical insurance. Now that he's 65, he's no longer on my insurance so it's just a question of how much taxes we pay as a married couple vs. being divorced.

I think it's rediculous that we should have to consider something like divorcing for tax purposes.

Totally agree on the last sentence. I'm sorry you feel the need to even consider that route - but it's understandable under the circumstances.

[DRob4JC]

Originally Posted by MTAtech

Those Obamacare taxes you write of have no effect on the vast number of Americans that have employer provided health care. The tax is on those who have no health care and won't buy any.

The cliff also includes across the board federal spending cuts.

Let's understand that we got here because the republican right-wing won't even entertain raising taxes on those earning more than $1 million --- 0.2% of the population.

You don't know what you are talking about.

Boehner (not that he is right wing) offered raising taxes on millionaire income earners.
Fiscal cliff talks: Speaker John Boehner pitches millionaire tax hike

Boehner suggested hiking the Bush-era tax rates for top wage earners, including those with annual incomes of $1 million or more annually, beginning Jan. 1, two sources said.


Obamacare taxes in play for 2013.
In 2013, Millions Of Americans Face Obamacare Tax Hikes

On January 1, 2013, a 2.3-percent excise tax on the total revenues of medical-device companies — regardless of whether they turn a profit or suffer a loss — will take effect. The tax will hit everything they sell, from x-ray machines and pacemakers to surgical tools and artificial hips.

...
Individuals with annual incomes higher than $200,000 and couples who make more than $250,000 a year will face two new taxes — a 0.9-percent increase in the 1.45-percent Medicare levy on earnings above those income thresholds and a new 3.8-percent tax on investment income.

...
Obamacare’s tax hikes aren’t just confined to the rich. The law raises the floor for the deduction of medical expenses, from 7.5 percent of income to 10 percent. So only expenses beyond 10 percent of a person’s income will be deductible. This change could add hundreds of dollars to the tax bills of those struggling with major medical bills.

...
Obamacare also halves the maximum contribution to flexible spending accounts (FSAs), from $5,000 to $2,500.


The Obamacare taxes/fines you are talking about start in 2014.

[MTAtech]

Originally Posted by DRob4JC

Boehner offered raising taxes on millionaire income earners.

Yes, he did and it was rejected by his own party:

Boehner Cancels Tax Vote in Face of G.O.P. Revolt

WASHINGTON — Speaker John A. Boehner’s effort to pass fallback legislation to avert a fiscal crisis in less than two weeks collapsed Thursday night in an embarrassing defeat after conservative Republicans refused to support legislation that would allow taxes to rise on the most affluent households in the country.

[DRob4JC]

Originally Posted by MTAtech

Yes, he did and it was rejected by his own party:

Boehner Cancels Tax Vote in Face of G.O.P. Revolt

Thanks for the clarification.

What have the Senate/President offered as a compromise?