I feel for you. It will affect us all.People get so lost in the stick it to the rich beat that they forget how much it will hurt everyone.
I’m one of the “stinking rich” (just over Obama’s official rich limit). I paid 6 figures in state and local taxes last year, and my accountant told me to expect a 15% increase this year. Limited write offs and no college financial aid package for me, I make too much. Yet when I work extra to help pay college tuition, I have to give over 1/2 of every dollar I bring in to the tax man. Doesn’t pay to work anymore, but it does pay not to work....
The tax increase will hurt me - a lot. But it will hurt the person I would have hired to clean my house, the lawn service I would have hired, the car dealer I would have bought a new car from etc... a whole lot more. And that is how you kill an ecomony.
The government thinks I now make too much and should share my wealth. Never mind that my decision is to share my wealth with my four children in college. The government is going to tell me how to share my wealth. So what will I do?
My plan is to avoid tax but sticking as much money into my 401(k). This will save me on progressive tax rates of 35% or higher. Then I will borrow as much as possible for education costs. Borrowing costs are historically low. I will pay far less in interest than I will in tax. Some student loans are free and I can borrow from my 401(k).