The government is enacting many changes in the year 2014. There are many things that people have gotten used to over the last several years that are about to change. There are several tax rates that are going to change in 2014 that many people are going to have to get used to.
People that earn a large amount of money can expect to see many changes. In the year 2014 people that earn over $250,000 are no longer going to see the tax cuts that have seen during the Bush administration. For everyone else they are also going to see a difference in their paychecks. While the people earning higher incomes will see the tax increase first everyone else can expect to pay a higher tax rate a year after. Many people are opposed to raising taxes for small businesses and middle class people. Obama and his administration are doing their best to help. The President is trying to get Congress to extend the tax increase for 98 percent of people that make less then $250,000 a year for at least one more year.
Previously Obama has stated that the lower tax rate should be permanent and should not increase for the middle and lower class Americans at all. Independent and small businesses are also going to be affected by the higher tax rate. Obama is trying to extend the tax cut for this group as well to promote the growth of small businesses in the country. As of right now the tax increase is scheduled to take place in 2014.
For people and businesses that are making above $250,000 they can expected to see their taxes increase from 36 percent to 39.6 percent a year. The top earners in the country can also expect to see an increase in their taxes. They will see an increase from 33 percent to 35 percent of their total income. This rate can also go as high as 39 percent of total income according to the plan proposed by Obama.
If the tax rates are not approved the average American will notice even less money in their paycheck. Federal and state taxes can increase as well as social security tax. It is said that a person will pay another cent per dollar that they own. While this does not seem like much it adds up over time. A person have to pay over a thousand dollars more a year.
This rate will increase by the income a person has. The higher the income a person has the higher the tax rate that they will be paying. Some people can even see a 40 percent increase in their taxes if something is not done. There are aslo going to be even more cuts to government funded programs. This has many people worried since the average American family is also struggling to get by. The year 2014 is the schedule end of the tax rate reduction and can bring a lot of change to the average family.