The effect higher taxes will have on YOU and your family!!!!

this is a great email from Greg T, a financial whiz. Read it at your own risk, it's depressing for all of us producers...--Paul

-----Original Message-----
From: Greg Thoemke



http://finance.yahoo.com/taxes/article/109773/How-the-new-wealth-taxes-will-hit-you?mod=taxes-advice_strategy

So, here we have a little primer on the new Obama taxes on the wealthy. Ed, I suspect you'll say something to the effect of "So what, they total 4.7%. 4.7% isn't that big a deal." However, those wealthy (here in WI for example) already pay about 43&1/2% (35% fed, 7% state, 1.45% Medicare). Thus, they're keeping 56.5%.

4.7% equals 8.3% of 56.5% (0.047 / 0.565), thus, 8.3% more of their net income could go to these new taxes. To my way of thinking, an 8.3% decrease in disposable income is a big deal. Couple that with the upcoming increase in state income taxes (1% in WI, as I recall) and probably federal income taxes (4.6%, if the current tax laws are allowed to sunset), and you have a 10.3% increase in total marginal taxes, meaning an individual's net income could decline from 56.5% to 46.2% -- an 18.2% decrease, by the formula above. Anyone who thinks this won't have a chilling effect on little things like job creation has got another think coming. Oh yeah, and Senator Kohl (D - WI) advocates a "modest, 1.1% increase in Social Security tax, to keep the system solvent."

How did that old song go? "Tax the rich, feed the poor, til there ain't no rich no more." Who knew Obama was such a music fan? Or, as Benjamin Franklin put it: "As soon as the populace realizes it can vote itself money from the treasury, democracy cannot long stand."

GT