That’s funny - my tax liability went down when the Bush tax cuts were enacted, and yet I don’t feel wealthy.
Well, that good you don’t feel wealthy. In 2011 you won’t have too far to fall. By 2012, you might ‘get it’ - it takes a while for some.
“...I don’t FEEL tardy...”
LOL. Sorry, that was the first thing that jumped into my mind.
My wife and I live on a quarter acre in ranchland in a little 1963 simple ranch (the ones that were built by the millions back then) and we are going to be hit big. We aren’t “rich”, but we are comfortable.
I suspect anyone seen as ‘comfortable’ is also seen as ‘rich’. Never mind we never bought things we couldn’t afford and tried to manage our own financial future without depending on Social Security income. People like me are viewed as the cash cow.
As damaging as letting the Bush Tax Cuts expire will be, I also think the cumulative effect of a LOT of things is going to be amazingly destructive to the economy.
For example, they want to get rid of the Health Care Savings accounts. Sure, that may only be a few thousand off your taxable income. But it is a few thousand. It is the tip of the iceberg.
When I explained this to someone, she said “Why would the government get rid of HSA’s? They don’t cost them anything? I told her they were viewed by the government as potential revenue.
Next, the mortgage credit will go. Now, I can see where we could do it, if the entire housing industry and tax structure is revamped in lock-step.
But we all know it won’t be. They will FIRST get rid of the mortgage tax credit, and somehow never get around to addressing the reasons why it was there in the first place and the results of having it in place for so long.
I see lots of iceberg tips. And as I have said before, I don’t think the deleterious effects of all this are unintended.