On November 6th the men and women spoke with their votes. The question is what was achieved as basically the government remained the same. The next question is what will happen in the next four years. Will it be better than the last four years? We've two main issues which are coming up.
1. Fiscal Cliff. The Congress along with the President have already been kicking it down the road for various years. Now they are going to generate some decisions since as of January 1st 2013 the tax increases and spending cuts will take effect. These will have an effect on all Americans in a negative way. The tax enhance for a lot of middle-income families will be about $2,000.00 determined by calculations of your Tax Policy Center. The Congressional Budget Workplace is estimating 3-4 million jobs will be lost. They also estimate unemployment would rise to 9.1 %. The total price of this determined by the Congressional Budget Workplace will be $671 billion in 2013.
2. The next big question is how will the Affordable Care Act affect our economic climate? A few of the taxes which might be in this bill certainly are a 3.8% surtax on dividends, interest, rent, capital gains, annuities, house sales, on people with a gross revenue of 200,000 for men and women and 250,000.00 for joint tax filers. Also, in the event the Bush tax cuts are not extended then the tax on dividends will go from 15% to 43.8% affecting lots of seniors because they depend on their dividends for their earnings. The flexible spending account contribution will likely be set at $2,500.00 whereas, in the present time there's no restriction. The itemized health care deduction now is $7,500.00 and raised to $10,000.00. The non healthcare withdrawals from a health financial savings account went up in 2011 from 10% to 20%. The over the counter medicines are not paid from the flexible spending account as of January 2011. As of 2013 the healthcare manufactures will need to spend a 2.3% physical exercise tax on items more than $100.00.
The consequences for little organizations are in the 50 employee level. At this level the small business will have to face the 50 employee threshold. These firms will need to either present health insurance that is acceptable to the government or have a tax penalty of 2,000.00-3,000.00 dollars. So firms which might be under 50 people are not going to hire more people, and if they are at just 50 people, then they may lay off personal to acquire beneath the 50 employee level. Lots of compact businesses will contemplate hiring temporary help as an alternative to full-time help as a method of dealing with this predicament. Companies are already starting to cut staff from full-time to part-time. A lot of companies are not planning on hiring staff within the future. The economy has slowed down as many corporations have held back as to view what the elections would bring. Now that they know, they are adjusting towards the consequences of the elections. Elections have consequences no matter whether it is positive or unfavorable. Firms are searching how these new policies affect them. They are making the choices to keep their firms afloat. The sad truth is that the American people will really feel the effects of the election.