- Posted October 10, 2012 by
Mt. Gilead, Ohio
This iReport is part of an assignment:
Today Show Defines the Fiscal Cliff
On the 10/10/2012 edition of the Today Show on their money segment they defined the "fiscal cliff" that will occur if "Congress fails to act." At present there is a group made up of 4 Republicans and 4 Democrats is trying to reach an agreement over several tax breaks, one of which is the "Bush Tax Cuts", and some policies that force a reduction in some government spending. However, the tax cuts set to expire are seen as of more immediate importance because of the effect the expiration of these tax cuts would have on the two income classes hurting the most as a result of the economic collapse.
Here is how it stacks up:
Lower income earners can expect a $400.00 tax increase.
Middle income earners, roughly a $2000.00 increase.
The wealthiest earners get a $120,000.00 tax increase.
Now keep in mind Mitt Romney who would be considered in the wealthiest earners bracket only paid 14% in taxes when the other 2 income classes that pay taxes paid between 20 to 35% in taxes. Both political parties have reached the conclusion that if they put off taking any action it will give them some sort of political advantage in the up coming Presidential race according to the media, so essentially Congress is holding the majority of Americans hostage until after they see which way the election goes before doing anything that could bring some relief to those suffering as a result of the economic collapse.
For the very wealthy $120,000.00 is a drop in the bucket, many of them have wasted that much without batting an eye, some of it to fund politicians that if elected will be favorable to their way of doing business that helped create the present US economic situation. If "Congress allows" the US to go over the fiscal cliff it is the middle and lower income classes that will pay the heaviest price that will also cost thousands of American jobs for the 2 lower income classes according to Wall Street speculators, and two university economic experts.
In conclusion it can be said that while our millionaires in Congress and the private sector are playing politics the needs of the majority of the people, those that make up the middle and lower income classes will be denied any relief. It is not rocket science to understand that just extending the tax cuts for the 2 classes that need the most relief from economic devastation could save the nation from being thrown into a deeper economic mess... a $120,00.00 dollars more in taxes on the wealthy would not increase that 14% the Romney-types pay much percentage wise in relation to the 20 to 35% the rest of America is paying in taxes, it will only serve to "equal the percentage rate" being paid somewhat.