In one mile on South Perkins Road south of Stillwater, there are 10 small businesses, all of which fall into the over 250000.00 income level. All have laid off employees. All have postponed building on, and all have not hired a person and will not do any of this unless the tax cuts are made permanent, or extended.
If you do the math, it does not take a very big business to have income in this bracket. This is what is not being told.
The other part not being talked about is the death tax and it's extension.
As of Jan. 01, 2011, the American public as a new partner in their estates. The government. As of that date, when you die, the government comes in for their 55% of your estate over 1 million dollars.
It does not take a lot to total to the million dollars these days. In our area, land has sold for 3000 to 10000 an acre.
Now, just take a quarter section, times high amount, and figure the tax, then imagine it was farm land and you had to farm it out... You would have to pay Uncle Sam 363,000 just to raise 4.00 dollar wheat or 500 dollar calves... Etc... Would take years just to pay off this one debt...
Now forget farming and imagine a nice home on a few acres... And a few stocks and small savings account... And your kids having to pay taxes just to get 45% of what you worked for your whole life...
I will stop here, but the next few weeks will determine a lot about what happens in the future...
If the bush tax cuts are not extended, those making under 250,000 will find their rate on taxes going from 10 to 15% this is not a 5% increase, but rather a 50% increase from 10%.
