Understanding Politics: How the Election Could Affect Your Taxes

During this presidential election, both Romney and Obama talk an awful lot about how they will help the middle class. It?s worthwhile to understand what they mean, so in today?s post we?ll take a closer look at each candidate?s tax policies and how they impact middle income Americans. Don?t start to yawn, keep reading ? this probably matters to you!

Who will be most affected by tax proposals?

Firstly, who is the middle class? Does this mean everyone but the cast of desperate housewives? The U.S. Census Bureau does not have a definition, but guess what ? Obama and Romney do. It turns out that Obama and Romney?s definition of the middle class is relatively similar.

These are the folks in the space between low-income Americans (which are defined in many ways) and high-income Americans earning more than $200,000 (according to Obama) or $250,000 (according to Romney).

Considering that 96% of Americans make less than $200,000 (says The Atlantic), this probably relates to you.

Obama vs. Romney: How will each candidate?s tax proposals affect you?

Romney is suggesting a 20% tax cut in marginal taxes. He is also eliminating taxes on any interest you would earn from dividends or capital gains, if you make less than $200,000 (Psstt?this is income from stocks, bonds, or real estate).

Obama wants to extend the Payroll Tax Cut, which decreases the taxes taken out of your wages to pay for social security by 2%. He also wants to extend other tax credits for certain income brackets. It?s hard to summarize this one ? so please check it out here.

There are a couple other credits he wants to extend ? like the American Opportunity tax credit. This helps students or parents paying for college, and its worthwhile to take a look here.

Note that neither candidate wants to increase taxes on the middle class. What?s a hot debate these days is how each one will tax higher-income Americans. Considering that?s only 4% of us, let?s leave that discussion to a later date. And remember, if you?ve got a question about the election please send it along to info@gogirlfinance.com. You?re nothing but high class in our eyes.

Tagged as: blog on personal finance, election, money and finane, politics, taxes, understand politics, women and money

Source: http://www.gogirlfinance.com/money/understanding-politics-how-the-election-could-affect-your-taxes/

rashard lewis curacao curacao home run derby kourtney kardashian kourtney kardashian DNS Changer