Nothing is set in stone yet. After he gets his PDB today, the President-elect will meet with his financial advisors to work on the economic recovery program. He has a lot on his plate so we have to be patient and see what comes out. The President see very clearly that the problems of small businesses and the middle class have to be addressed immediately for job creation to begin.
Infrastructure also needs to be looked at. Road and bridge repair and construction are critical and are great for quick employment IF he can find the money.
Got this email from a friend of mine that is an investment counselor and had
15 yrs as a tax advisor as well.
---------------Prepare for annual political rant---------
You will have to excuse me, the election hit me fairly hard. I am tired
of all the lying the politicians do to the general public. Adds state
that the average worker will receive a tax cut,
but they forget that
they just let meaningful tax cuts expire. (that is not called an
increase in taxes however). A new study indicates that if you are a two
wage earner family and make over $100,000, you will end up paying $6,000
more in actual taxes in 2009 compared to 2008. If you make closer to
$200,000 you will pay $14,000 more because all of your deductions and
exemptions phase to zero, plus AMT kicks in to give you another kick in
the behind. If you are self-employed, your effective tax rate including
payroll taxes, state and federal taxes and property taxes increases to
56%. Non self-employed 48%. That is not even in the new proposed
higher brackets.
Two wage earners with 2 children making $180,000 pay $40,000 in federal
taxes (22% effective rate) while two wage earners with 2 children making
$45,000 receive $500 in federal credits for the kids and pay $0 in
federal taxes(-1% effective tax rate) in 2008. The top 50% of wage
earners in this country pay 98% of the federal taxes.
Instead of promising everyone, everything maybe we should cut spending.
Maybe we should put together an energy infrastructure plan so that we
don't export $700 billion every year for oil to people who don't even
really like us. Maybe we should pay down our debt instead of 30% of
every years budget going for interest expense.