How much of your paycheck will go to Uncle Sam?
One of the main themes during the election was promises by both President Barack Obama and Mitt Romney not to raise taxes on the middle class.
That was then. This is now.
With the fiscal cliff looming, the average person making 40 thousand dollars a year could be in for a rude awakening. That rude awakening could be a much higher tax bill next year according to Houston CPA Bob Fumagalli.
“Once you start adding the other taxes on to it, like Social Security, at that point there can be fifty percent of your paycheck going off to the federal government,” he told KTRH.
Financial strategist Michael Parmet says that’s a raw deal for taxpayers.
“The average person out there isn’t getting any great benefits from the government. They’re paying more taxes and they’re providing a transfer of wealth to those that aren’t paying their taxes,” Parmet said.
Parmet also said the repercussions of higher taxes would be bad.
“It’s inviting a recession. We’re taking so much out of the pocket of even the average guy out there that we are going to have a catastrophic fallback out there. There won’t be enough money going into businesses that will hire people,” Parmet explained.
So what happened to the Obama campaign promises? Fumagalli explains they go out the window because the election is now in the past.
He says that, “Campaign promises are forgotten, especially when you have someone that’s not worrying about re-election. Rates are going to go up for everyone.”