BellaOnline Forums Money Taxes Higher Taxes?

We could be seeing higher taxes soon if the fiscal cliff is not resolved. Many of the wealthy reportedly have been selling stock due to the possible tax increases. Most likely a deal of some type will be reached. However, if you are in a high tax bracket, you may want to sell some of your winners before Dec. 31st and take the profits.

I do wonder what will be done to avoid sequestration. There are a lot of tax deductions and credits available to lower income folks - do you thin these may be reduced?

Unfortunately, I think that a lot of the tax deductions are going to be either reduced or eliminated.

The most likely, in my opinion, are the mortgage tax deductions. They will likely be reduced.

The deductions for those with lower incomes may vary well be reduced. It certainly doesn't seem right to do this but the government likes to spend money and will get it somewhere. The child tax credit and earned income credit could be limited or eliminated.

And look for the payroll tax reduction(2% payroll Social Security reduction) to expire.