over the fiscal cliff

[kmccain]

Breaking News!

They made an agreement!

Humm Should be interesting!

 

[ilovemk76]

I noticed that the lower incomes get hit with a larger percentage too. That's just wrong.

It sounds like the Senate and President's office are close to agreeing on a plan. Now we'll just have to wait and see how the House reacts. (I hope that this isn't political - I take no sides and have no comment on individuals!)

Do you understand how percentages work? Look at the top and see how the more you make the larger that number becomes.

If I only paid a $1 in taxes and my new rate was $2, then my increase was 100%. If you paid $100,000 in taxes and your new rate was $125,000, then your increase was 25%. If you look at the numbers I paid $1 more and your paid $25,000 more.

 

[worm761]

Breaking News!

They made an agreement!

Humm Should be interesting!

Where do you see this? CNN is not reporting a deal has been made.

 

[ilovemk76]

What is the increase for SS?

2%

This puts it back at the number it should have been for the last two years and was three years ago.

 

[eliza61]

Breaking News!

They made an agreement!

Humm Should be interesting!

where did you hear this, I'm still hearing they will miss the deadline.

Actually my main concern is not the taxes and folks remember this chart does not take into the many exemptions peple take so the chart is really "illustrative".

I concerned about the subsidies that will disappear. evidently the feds subsides a lot of our food industry (i wonder if I can call that welfare for companies?) for example the dairy industry gets tons of money from the feds to keep the price of milk down. that's set to expire, so milk prices are rumored to double. Stuff like that.

 

[SwimBikeRun]

where did you hear this, I'm still hearing they will miss the deadline.

Actually my main concern is not the taxes and folks remember this chart does not take into the many exemptions peple take so the chart is really "illustrative".

I concerned about the subsidies that will disappear. evidently the feds subsides a lot of our food industry (i wonder if I can call that welfare for companies?) for example the dairy industry gets tons of money from the feds to keep the price of milk down. that's set to expire, so milk prices are rumored to double. Stuff like that.

The milk/dairy issue was solved on Friday (I think it was Friday). I know it was before the weekend because that would certainly get people all riled up.

 

[rockawaybeachgirl]

Do you understand how percentages work? Look at the top and see how the more you make the larger that number becomes.

If I only paid a $1 in taxes and my new rate was $2, then my increase was 100%. If you paid $100,000 in taxes and your new rate was $125,000, then your increase was 25%. If you look at the numbers I paid $1 more and your paid $25,000 more.

You're both right - the changes ( which are not going to happen, so it's moot really) has a bigger dollar impact for higher income earners, but is more impactful for lower earners. So, in your example, yes, $25k is more than $1, but the $25k means less to someone making $100k than $1 means to someone making $2.

Numbers WAY simplified for effect of course....

 

[rockawaybeachgirl]

You're both right - the changes ( which are not going to happen, so it's moot really) has a bigger dollar impact for higher income earners, but is more impactful for lower earners. So, in your example, yes, $25k is more than $1, but the $25k means less to someone making $100k than $1 means to someone making $2.

Numbers WAY simplified for effect of course....

And before anyone says "well $25k sure means a lot to me" - of course it does. But, mathematically, in the example, it is LESS impactful, proportionately, to the $1.

 

[kmccain]

Where do you see this? CNN is not reporting a deal has been made.

CNN is saying their DEM source says there is a deal

 

[ilovemk76]

You're both right - the changes ( which are not going to happen, so it's moot really) has a bigger dollar impact for higher income earners, but is more impactful for lower earners. So, in your example, yes, $25k is more than $1, but the $25k means less to someone making $100k than $1 means to someone making $2.

Numbers WAY simplified for effect of course....

The $1 and $100K were taxes paid not income.

 

[worm761]

CNN is saying their DEM source says there is a deal

Oh, OK. All I am seeing is that they are still talking and a deal may be made by the end of the night. I keep checking the website. DH is a civilian employee and I have heard talks of everything from more no raises for years to come to laying off thousands. Stressed is not even what I am right now as we have chosen for me not to work.

 

[Kathi OD]

Don't know if anyone else has pointed this out, but its seems as though the less you make, the more you are affected!

My son, who is the sole wage earner, with 5 allowances, will see a 35% increase!!!

OTOH, DH and I, with only 2 allowances and over 3 times his annual salary, will see a 14% increase.

That, is crazy!!!!

 

[Kathi OD]

CNN is saying their DEM source says there is a deal

The CNN breaking news is that Harry Reid and Nancy Pelosi (both Dems) have agreed to a fiscal cliff proposal in a call to Obama. No mention of Republicans agreeing...so who knows for sure. Maybe Reid and Pelosi agree with each other. Until a Republican chimes in, I'm not believing it.

 

[pooh4evr]

Wow....not as crazy as my co-workers are making it according to this graph..

15% for us fanfreakintastic.

 

[rockawaybeachgirl]

Don't know if anyone else has pointed this out, but its seems as though the less you make, the more you are affected!

My son, who is the sole wage earner, with 5 allowances, will see a 35% increase!!!

OTOH, DH and I, with only 2 allowances and over 3 times his annual salary, will see a 14% increase.

That, is crazy!!!!

First, everyone should calm down a bit. The parties will agree to maintain the tax cuts for the vast, vast majority of the population (most likely, IMHO, households making less than $450k). Second, those making less are not taxed more per se - i.e. Everyone will pay the same tax on the first $18k of what they make, whether they make $$18,001 or $18,000,001- but the percentage affect is different because the impact on tax brackets is not proportionate.

Also, while the deal will keep the tax rates the same, I am not sure how it will come out on all of thes spending cuts - so for the poster that was worried about layoffs - that's a totally different issue than the tax rate changes.

 

[HookedOnDiz]

I don't pay into social security at my job. Can someone tell me if I will see an increase in taxes other than the SS increase?

 

[Kathi OD]

First, everyone should calm down a bit. The parties will agree to maintain the tax cuts for the vast, vast majority of the population (most likely, IMHO, households making less than $450k). Second, those making less are not taxed more per se - i.e. Everyone will pay the same tax on the first $18k of what they make, whether they make $$18,001 or $18,000,001- but the percentage affect is different because the impact on tax brackets is not proportionate.

Also, while the deal will keep the tax rates the same, I am not sure how it will come out on all of thes spending cuts - so for the poster that was worried about layoffs - that's a totally different issue than the tax rate changes.

I was not concerned that the parties wouldn't come to an agreement (and if the report I just heard on the local news is true, they have), just expressing disbelief at the disparity in the impact it would have on lower wage earners.

 

[Planogirl]

Do you understand how percentages work? Look at the top and see how the more you make the larger that number becomes.

If I only paid a $1 in taxes and my new rate was $2, then my increase was 100%. If you paid $100,000 in taxes and your new rate was $125,000, then your increase was 25%. If you look at the numbers I paid $1 more and your paid $25,000 more.

Yes, I do understand how percentages work.

I believe in a flat rate. I also know that those who are paid less often need every penny. I only care about impact not some tiresome mathematical numbers.

 

[vacationer1954]

Mine shows over a 16% change. That's not a good number to me.

Better than the 32% increase my sister said she was going to encounter.

According to that chart, the lower your income, the higher percent of change you will have. Not sure if that chart is accurate or not but it will make it harder for those of us that are barely making it now.....

These numbers reflect how much of an advantage we received from prior budget deals so if someone got a 16% advantage in the past ten years or so then it makes sense that someone loses a 16% advantage.

Breaking News! They made an agreement! Humm Should be interesting!

I've looked around and the news report with the most detail about the agreement they've made is here:

http://www.bloomberg.com/news/2013-...udget-deal-to-democrats-as-vote-possible.html
http://www.bloomberg.com/news/2013-...-s-cliff-deal-shifts-pressure-to-boehner.html
http://www.bloomberg.com/news/2013-01-01/senate-budget-pact-would-crimp-not-crush-u-s-growth.html

I don't know why they put out three separate articles with overlapping information, but together they're the best info we have.

where did you hear this, I'm still hearing they will miss the deadline.

Even with this agreement they've missed the deadline but it's okay because they can make changes retroactively.

 

[mdsoccermom]

The Senate passed the package. The House is expected to reconvene at noon.

http://www.cnn.com/2013/01/01/politics/fiscal-cliff/?hpt=hp_t1