How my family will be effected if proposed tax rates
for the middle class fall through!
Currently our President Barrack Obama and House majority leader John Boehner, are trying to hammer out a grand bargain to avoid the up coming fiscal cliff. Congress, as most know, could have already signed the extension of the Bush tax rates along with the pay role tax cuts the President has proposed and hammer out the details on the wealthy to begin first thing next year if necessary. However, once again the GOP's far right is holding this bill up for several reasons. Many tend to believe this to indicate their willingness to stall-wart congress as best they can with the wealthiest two percent in mind. I urge everyone to call, e-mail, or write the representatives of your district and state.
I am currently disabled and live with my mother who is retired. However, she didn't retire on her own accord. She suffered a heart attack followed by an allergic reaction to medications. Needless to say, she wasn't in the most ideal financial position to have to give up her private practice. As she became more ill, her sister and brother-in-law were caring enough to move us up to Detroit and help us with getting housing needs, so my mother could be closer to her immediate family. If taxes on the middle class go up by an average of $2000-$2500 dollars, it would greatly reduce the ability of my aunt and uncle to be able to help us out. There are often times when we don't have money for food, medical bills or gas let alone car maintenance and many other situations as they arise. It always seems as though if it's not one thing it's another. I'm very grateful to have such a caring and concerned family that is willing to help my mother and me. Many do not have this opportunity or have no family. If their taxes go up, that will most likely mean that they'll have less money to spend on food and other amenities. In response to more people spending less money in the market, the markets will react by cutting down production relative to drop in demand, thus lowering the consumer price index, and perhaps setting off a double dip recession. The economists often refer to this as the consumer price index, which I'll discuss below.
The manner in which these issue would directly effect my family is very relative to this issue on two different fronts. First, let me state that recently business owners have claimed that increasing the taxes to Clinton Era rates would have zero bearing on whether they hire or not. If the demand for more production of a product arises ,despite the tax rate, companies will hire to increase production and in turn reducing unemployment. On the other hand, those living from check to check, if the rates go up and we go over this fiscal cliff, it could be catastrophic. If their taxes go up, middle class families will have less money to spend on food and other necessities. In response to more people spending less money out in the market, the markets will react by cutting down production relative to drop in demand and thus lower the consumer price index. This may sett off a double dip recession. Secondly, the economists often refer to something called the consumer price index. This is tied into the way that social security is adjusted in the yearly social security income increase is called COLA or Cost Of Living Adjustment. The way COLA is calculated is connected to what is called the CPI or “Consumer Price Index”. The consumer price index is a formula that economists use to calculate how much money a family of four is spending in relation to market atmosphere and inflation. Thus this is part of the process of how the social security board adjusts the cost of living increase. If the GOP gets their way and cuts the CPI out of the COLA rate formula on social security, adjustments would be sure to go down. We cannot stand for this. PERIOD. The income disparity in this country is already growing at staggering rates.
Since being notified of the recent events taking place in Washington this weekend and progressing negotiations with speaker Boehner and President Obama, I fear that cuts in the COLA rates may be on the cutting board. I would like to make sure everyone out there understands that when the GOP and Pres. Obama say “Entitlements” must also be on the table, the public fully understands what that means. So far it sounds like cost of living rate deductions. There are solutions for the social security solvency that are coming up in the near future. One thing that could be done is to raise or totally lift the S.S.I. Taxation cap which is currently set at, I believe, $110,000. Anyone making anything above that limit, from that point on, not one cent goes towards S.S.I. . Raising the tax cap alone could make Social Security Income solvent for the next 75 + YEARS. I want to assure everyone here, I know the stress we're all feeling and what the consequences could be if your taxes get raised by $2000.00 dollars or more.
Thank You ,