2010 Tax Rates

October 13, 2009

Looking at the current economic crisis and the financial goals that a country is willing to reach, some adjustments have to be made and all these revolve around the tax rates and precisely the amount of tax that citizens will have to pay. It does not take a financial genius or an economist to make this prediction since all the pointers indicate a very high probability of 2010 tax rate increase over the next year. These tax rates are of course not going to affect everyone since the very low income earners are exempted from these changes. These people have it hard enough and asking them to pay tax, let alone increase its rate would be a financial nightmare to them.


Looking at the financial budget, there is a deficit in funds owing to the lower than optimum tax rates that citizens have been paying. It’s long been like this in the hope of maintaining happy folks who are comfortable with paying just enough tax. But just enough is not going to cut it this time round and it is expected that future financial obligations will demand more money, which will give a heightened rate of 2010 income tax. Looking at the social security problem and the low funds available, the rate increase will not just be for one year but is thought to substantially increase all the way to 2012. Its like there is no other choice if prosperity and economic dependency are what are hoped for in the long run.


Someone may think that it is unfair that only the ‘rich’ will be facing the 2010 tax rates that will most probably increase. They may present their story by citing that most of the ‘poor’ people benefit from programs that they hardly pay for. But when you examine that situation head-on, you will understand that these people can simply not afford the tax and not that they don’t want to pay. In all fairness it would be unjust to demand from them what they are trying to look and struggle for every waking day.

There is no need to look at the probability of heightened 2010 tax rates as a bad thing. Granted one will have to make a few cut backs on the amount that they spend so that they can comfortable fit the predicted rates without having so much financial change going on. But in the bigger picture, with bigger being implied to mean national level in the years that are, and those that follow, there is more to gain than to loose. Sure you will add up some few hundred dollars to income tax. But that will mean better healthcare and better mortgage plans that have already taken effect. In the end it’s a win-win.


In preparation for the future in the taxing rates, you can do things like open a 401k account which are tax-free, and do some long-term thinking about your financial obligations. This will enable you to make some cuts where you can so that in the end, a higher rate of paying tax will not affect you.

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Written by Uncle Sam · Filed Under Taxation 

Comments

One Response to “2010 Tax Rates”

  1. Damon on November 24, 2009 at 9:24 pm

    Income tax rates should be lowered for the poor by a few percent and gain back from the richest people by a few percent. This would balance the tax revenue for the states and help the poor feed their family. For the hardworking person, it is hard to see a chunk of the pay check being deducted every pay check. If we reduce the fiscal and tax burden of the little income people it would help alot and give back more money in the economy. Rich people would not even care to pay more tax by increasing their income tax rate, and they are not the ones who pay for samll thing every day and running the economy.

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