Home | Tax Blog | Tax Evaluation | Resources | Common Tax Questions | Back Taxes | Contact Us

Year End Tax Issues

December 14th

As 2011 comes to a close, it is evident that this past year has had its fair share of fiscal ups and downs. One of the big topics of discussion has been the national debt and budget crisis and how it affects taxes.

The tax policy has been the center of much debate among politicians and whether possible changes would help alleviate our debt woes. Despite these discussions failing to lead to an agreement, some of the current tax cuts could come to end after the New Year.

Tax Reform

The issue that has many people concerned about the New Year is the payroll tax cut deadline. If no extension is granted, the payroll tax cuts currently offered will be terminated starting January 1st, 2012. The payroll tax cut has played a key role in sparking the job market by motivating employers and small business owners, which were eligible to lower payroll taxes from 6.2% to 4.2%. It is anticipated that Congress will extend this program for another year because it would be detrimental to raise takes on workers in a soft economy.

Another issue facing political leaders in the New Year is whether or not to raise taxes for certain income brackets. Democrats are looking to apply a 1.9% increase in taxes on those whose annual income exceeds $1,000,000. They are also hoping to repeal the Bush tax cuts for the wealthy. Meanwhile, some Republicans are pushing for a flat tax, or universal decrease in taxes so as to not cause a ripple of tax debt.  Further, Republicans want more tax deductions to help lower tax liabilities for all taxpayers and many businesses.

Currently, there are no plans for any changes to take effect by the year’s end. However, it is clear that some policy change is on the horizon, whether that means through tax increases or more cuts.



Subscribe Now

Follow on FaceBook
News & Events
Monday, August 01, 2011

We are excited to launch our new site LeeTaxHelp.com.
Monday, September 05, 2011

If you think you might be need the advice of a Dallas Bankruptcy Attorney you can view on sister site at http://leebankruptcy.com
Back Taxes (5) General Tax Information (65) News (39) Payroll Taxes (5) Tax audit (10) Tax Debts (3) Tax deductions (16) Tax Fraud (4) Tax Laws (14) Tax Liens (10) Tax payment plans (14) Tax programs (21) Tax Scams (6) Uncategorized (2)
Recent Posts
Advantages of Using a Tax Debt Lawyer
Tax Debt Relief In 2014
Tax Debt Installment Agreements
Understanding the Five Tax Debt Strategies
Back Taxes: What You Can Do
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011