How will the new UNCONSTITUTIONAL fiscal cliff tax deal effect our economy?
I’ll get back to that but first…
Let me count the ways.
First of all, the new legislation sets the standard for “rich” at $400k for an individual or $450k for a family rather than the $250k originally desired by the Emperor.
This will leave some small business in the NON rich category but not ALL small businesses.
Those small businesses which exceed the “rich” limit will have some options available to them. They can simply put the breaks on any planned growth of their business which will be the case for those approaching the limit or, they can downsize if they are just barely OVER the limit.
What will be the MOST likely scenario will be businesses raising the cost of goods or services to compensate for their increased tax bill.
THAT, of course means, those who BUY those goods or services will have THEIR taxes raised by proxy.
Then there is the fact that EVERYBODY…not just the “rich” will see a tax increase.
That’s right…Part of the new fiscal cliff tax deal is that everybody…EVERYBODY will see their PAYROLL taxes go UP which means EVERYBODY will have LESS take home pay.
Nice huh?
All that talk from the Emperor during his campaign about making sure that the middle class would NOT have their taxes raised?
Domestic Policy.