The Financial Cliff

[UpstateNYUPSer(Ret)]

I understand it to be just the money above $450k.

A good accountant could negate the higher tax rate rather easily.

They need to streamline the tax code, eliminate the loopholes and limit deductions.

In 2011 my gross pay was $65,495 yet my taxable income was only $48,005. My early estimate for 2012 is gross income of $67,115 and taxable income of $37,434. The difference was my 401k contributions.

 

[moreluck]

The estate tax would revert back to a Clinton Era tax for estates over 1 million. Dems want a 3 million exemption and Rep want a 5 million exemption. To clarify this means zero tax on the first 1, 3, or 5 million that the estate is worth. I haven't looked at what the tax rate would be for amounts over these exemptions because it's unlikely my estate will ever be worth 3 or 5 million.

The estate tax doesn't effect most people.

It probably affects every UPS mgmt. who left around 2000. Don't die, because all that hard work to provide for your kids will go to the gov't. You already paid taxes on it .......a couple times.......... That's what's sick about it. How many times can they tax the same money?????!!!!!!

 

[ajblakejr]

I'm a little disappointed actually - I freed up 65K in my brokerage acct to buy stocks on the dip.

The contract is another cliff! I'll be happy when the contract is resolved too - hopefully early. Come what may, I hate all this uncertainty.

My gut tells me the market will be on sale.
I am watching a few items.

 

[Ms.PacMan]

It probably affects every UPS mgmt. who left around 2000. Don't die, because all that hard work to provide for your kids will go to the gov't. You already paid taxes on it .......a couple times.......... That's what's sick about it. How many times can they tax the same money?????!!!!!!

I agree, but on the flip side - if wages for everyone were higher, the taxes they pay would also be higher, shifting the burden across the board.

btw - I'm not talking about UPS here. I think they do a good job spreading the wealth among employees and mgmt. But everyone is effecting by everyone else eventually.

 

[Brownslave688]

So lets get this right as of now we kept some tax cuts but put off all spending cuts. I realize these are tough decisions but serious cuts and even some tax hikes need to be made.

 

[TUT]

A good accountant could negate the higher tax rate rather easily.

Yeah it's a big o game of crap for sure. They scratch and scream over higher base taxes but even moderate middle class people can get your net tax way down after figuring in tax breaks, esp. if you own a house with high interest payments. Many people are well under 15% when it's all boiled down and you can bet the wealthiest have the best people and most opportunities for tax breaks to get that number many times in single digits. So it's a lot of hot air about raising the taxes, when the net result will be really low taxes. It's a ruse.

 

[TUT]

How many times can they tax the same money?????!!!!!!

Every single time it changes hands, perhaps hundreds of times then. That is how it works. Circulating money is key, not saving for this whole thing to go round. Prior to the bubble, "you should save", after the bubble "you should spend and actually saving can negatively affect the economy". That is why I say they could give us all an extra 25K per year, and we'd do them proud by consuming it on goods to bring workers, wages and the economy back as strong as ever. Money, the amount of it and pretty much anything about it is a man made situation that can and should be manipulated properly. Sure you keep an eye on inflation, but you don't immediately throw out the inflation card, that is when there is a large abundance of money spread around, there maybe a lot of money our there today, but it's far from spread around well.

 

[moreluck]

Every single time it changes hands, perhaps hundreds of times then. That is how it works. Circulating money is key, not saving for this whole thing to go round. Prior to the bubble, "you should save", after the bubble "you should spend and actually saving can negatively affect the economy". That is why I say they could give us all an extra 25K per year, and we'd do them proud by consuming it on goods to bring workers, wages and the economy back as strong as ever. Money, the amount of it and pretty much anything about it is a man made situation that can and should be manipulated properly. Sure you keep an eye on inflation, but you don't immediately throw out the inflation card, that is when there is a large abundance of money spread around, there maybe a lot of money our there today, but it's far from spread around well.

Money has to be earned.......we didn't wait for someone to "spread it around".

 

[TUT]

Money has to be earned.......we didn't wait for someone to "spread it around".

How much is the question. I can't think of one economist that thinks average wage going backwards is a good thing.

 

[anonymous6]

the best things to do are always the best things to do.

reduce your tax liability by maxing out retirement accounts, 401k and IRA's. invest in low cost index funds.

use a well recommended tax pro. they are usually worth every penny.

pay down or eliminate debt.

buy used instead of new. shop around for best insurance rates. "a penny saved is a penny earned."

make education a lifelong endeavor.

 

[Returntosender]

[h=5]Madernity occurs when a society begins to arrange a kind of corporate slavery wherein no man might escape the dominion of the market. Industry becomes a “living” entity that demands greater and greater compliance from those who consumptively serve until it becomes something of a sentient force that wields a power usually only reserved for kings.

[/h]

 

[packageguy]

the best things to do are always the best things to do.

reduce your tax liability by maxing out retirement accounts, 401k and IRA's. invest in low cost index funds.

use a well recommended tax pro. they are usually worth every penny.

pay down or eliminate debt.

buy used instead of new. shop around for best insurance rates. "a penny saved is a penny earned."

make education a lifelong endeavor.

I done all of the above, so far things okay

 

[Anonymous 10]

OooooooooooooooobbbbbbbbbbbbbbbbbbbbbbbaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaAaaaaaaaaAaaaaaaaaaaaaaaaaaaaaaammmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmaaaaaa

 

[Anonymous 10]

OooooooooooooooobbbbbbbbbbbbbbbbbbbbbbbaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaAaaaaaaaaAaaaaaaaaaaaaaaaaaaaaaammmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmaaaaaa

Obama like this

 

[Just Numbers]

The other day on CNN, the CEO of S&P was on the show (Your Money).
He said this short term deficit is absoutly nothing compared to the long-term debt that should be focused on almost immediatly ! - The $100 Trillion in US liabilities owned in SS, Medicare, interest on debt and more). !!!

How do you think we got into such a debt situation? I'll make this easy the answer is not dealing with the short term deficit!

 

[Anonymous 10]

How do you think we got into such a debt situation? I'll make this easy the answer is not dealing with the short term deficit!

Bush???

 

[728ups]

the best things to do are always the best things to do.

reduce your tax liability by maxing out retirement accounts, 401k and IRA's. invest in low cost index funds.

use a well recommended tax pro. they are usually worth every penny.

pay down or eliminate debt.

buy used instead of new. shop around for best insurance rates. "a penny saved is a penny earned."

make education a lifelong endeavor.

EXCELLENT advice! thanks very much for sharing this.

 

[Just Numbers]

Bush???

Forget Bush. Go back 50 yrs when LBJ was raiding social security as every dem and rep has done since!

 

[Anonymous 10]

Bush set it up we will keep it going.

 

[Just Numbers]

Bush set it up we will keep it going.

So how many yrs has the govt run a balanced budget since 1960? Kennedy,Johnson,Nixon, Ford, Carter, Reagan Bush, Clinton, Bush and Obama. Looks like a bunch of d's and r's to me. Hell we haven't even had a budget in the last 3 yrs although it is specified by law that we do! I suppose that is Bush's fault too!