FORT MYERS, Fla. - Big tax cuts are headed your way. Friday, President Obama signed an $858 billion tax bill to revive the economy, and everyone will feel the benefits.
The most significant part - taxpayers won't have to worry about
a tax hike next year. The additional tax cuts mean more money in your pocket, more
money spent on local businesses, and a stronger economy.-
The old saying goes: "nothing is certain but death and taxes." At least for the next 2 years, you'll have a few less to worry about.
"There's lower income tax rates at least for the next 2 years, lower capital gains tax rates than what would have happened, had these bush
tax cuts expired, higher estate tax exemptions, and that's really good for anyone who has a larger estate," Attorney and tax specialist Craig Hersch said.
For parents, the $1,000 per child tax credit stays through 2012.
For the long-term unemployed - a 13-month extension of benefits. It's aimed at those who have not yet reached the 99 weeks. So the 105,000 Floridians who have already exhausted their benefits are not included.
One part that benefits just about every working American - that social security tax you see on your paycheck will be cut from
6.2% to 4.2% for 1 year. A worker who makes $50,000 a year will save about $1,000 next year.
"What that means is more money in everybody's paycheck, more money to spend, and hopefully help the economy spur on," Hersch said.
"I think it's a good thing they tied it to earnings. I think that's how they should do credits," Michael Gillespie said.
While it's a win-win for most Americans, it's not a long-term solution.
"Really, this is a band-aid over a gushing wound," Hersch said. "It's going to help for two years but then we'll see what happens, and a lot will depend on the next election cycle."
With all the benefits the deal offers Americans, one thing it won't do, is decrease the national debt at a record $13.7 trillion.