Did anyone else catch the LA times article last week about all the tax hike proposals that are being floated at both the national and state levels?
Everything seems to be fair game. The mortgage interest deduction is high on the list of things they would like to change. Capping itemized deductions, capital gains changes etc. Cali has already hike the sales tax, the car tax and are trying everything they can to raise more money. Because of deflation, they are changing the California income tax brackets so they kick in at lower incomes. For instance a married couple making $100k will pay an additional $716! In addition they raised the income tax by .25%...double whammy!
In addition the insurance companies just got the OK raise our homeowners rates 4% to 7%, hmm, anyone wanna guess which end of that range they will pick?
And, now we pay...... You didn't really think all these bailouts were free did ya?
5 comments:
And you didn't really think they'd let you keep those gains from real estate did ya?
The deleveraging beast must be fed.
Once I started working again (after being laid off for a year), we restarted a bit of discretionary spending. Fun fact: we're buying other people's used stuff on the cheap. No sales tax on that, and as a lifelong purveyor of music equipment, I can truly state that prices on used gear have come down a LOT over the last year.
I wonder how Craig's List will play into tax shortfalls next year?
'On a national basis, according to economists at the National Association of Realtors, anywhere from 300,000 to 350,000 additional sales of houses will be stimulated this year by the credit. Each home sale generates about $63,000 in downstream "ripple effects" elsewhere in the economy, they say. That includes sales of furnishings, appliances, lawn mowers, landscaping and renovation materials, plus moving expenses. If you accept the numbers - and some analysts consider them a stretch - this means the housing credit provides a powerful, immediate stimulus bang for the buck. Failure to extend what may be one of the most effective pieces of the Obama administration's 2009 stimulus legislation would cost jobs, economic growth and tax revenues, the housing groups argue.'
Read More: http://www.housingnewslive.com
I didn't know the tax hikes being proposed in Sacramento are tied to the bailouts in Washington. I thought it was to allow us to keep paying the high state worker compensations an pensions. Donn't they know raising taxes only forces people to spend less?
The tax hikes in sacramento would not be needed if it were not for the fiasco caused by Washington. So it's all related.
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