What The Tax Debate Means For North Texans
DALLAS (CBSDFW.COM) – The angry debate over taxes in Washington has put the average taxpayer in a holding pattern.
The debate is over whether the very wealthy should have to pay a higher tax rate. Both Republicans and Democrats agree low and middle income Americans should have low taxes. But, if congress doesn’t do anything, everyone’s taxes will rise after January 1.
Dallas Tax Advisor Clark Hodges, doesn’t expect it to get that far, but he says small business owners need to be proactive.
“You want to position your small business to be ready to take advantage of any tax breaks that they have.”
Hodges says if you can realize some losses before the end of the year, you should do it to make your tax bill lower in April no matter what congress does.
But Republicans and Democrats are still disagreeing on the bill offered by President Obama. One thing both sides can agree on is that it is expensive.
The bill will cost a combined $900 Billion in spending and lost revenue. Senator John Cornyn supports the bill, but says they will need to look at some big spending cuts in order to make up for it.
“We need to come to grips with that, and put serious caps on discretionary spending, and also reform our entitlement programs” Cornyn told KRLD’s Melanie Brown.
A vote on the bill is set for Monday in the Senate.
So what would your tax burden look like? A new website from The Tax Foundation shows you what you can expect if the bill does not pass. Click here to find out what you’ll have to pay