Our current tax relief provisions are getting ready to expire, are you ready to pick up the tab on the difference? Taxmageddon is the term that is being used to describe the $500 billion dollar tax hike that is about to hit wallets across America.
Considering the current political landscape, this issue is not yet on the mind of many politicians but the time has come for Americans to sound the horn to their members of Congress and let them know that if these provisions are allowed to lapse it would be tremendously detrimental to national economic recovery efforts. Scott Hodge of the Tax Foundation was recently quoted on the issue saying, "almost the entire tax code has been put on a year-to-year lease, and in some cases, month-to-month lease, which is no way to run a tax system." In sharing Mr. Hodge's sentiment, certainty to taxpayers is the only way to allow Americans and American businesses to perform financial planning so they can determine a spending budget anddesign a plan to invest for the future of their family or business. Of the $500 billion dollars that will come due, $165 million of that total would be dedicated to the expiration of the 2001 and 2003 Bush tax cuts of which the majority of those benefits were arguably dedicated to helping middle and low-income tax bases. The fact remains that all Americans will be affected if Congress does not act on this issue quickly. Whether it is from the child tax credit being cut in half, the fixes from the Alternative Minimum Tax (ATM) being erased, retirees dividends soaring up nearly 25 percentage points, or end of the $124 billion dollar cut in the Payroll tax; everyone has a vested interest in this fight.
When these tax relief provisions simultaneously lapse on December 31, 2012, the average American household will see a general tax increase of $3,800 dollars. With so many Americans and American business having a significant amount less of disposable income, how does this affect agribusiness with regards to the retail sector and the jobs that are tied to these agribusinesses? ARA looks forward to hearing your response to this article and any other membership perspective on the impending lapse of the relief provisions and how this could potentially change your business practices. ARA continues to support the permanent extension of the 2001 and 2003 Bush tax cuts as well as the full repeal of the estate tax.
You can find the Taxmageddon article by Fox News here or the hyperlink above.