Siesta Key, FL (PRWEB) June 20, 2012
Using tax deductions, tax loopholes, and good tax tips are about all middle class Americans can do to fight the Obama tax plan, according to Lee Phillips, attorney and tax planning author.
In spite of all the rhetoric, the Obama tax plan is already in place. It will hit on January 1, 2013 with the largest tax increase in history, according to GOP leaders in congress.
"This would be, without any exaggeration, the largest tax increase in American history," said a May 17 letter from 41 Republican senators to Senate Majority Leader Harry Reid.
In a speech last Thursday, Obama said. “At stake is not simply a choice between two candidates or two political parties, but between two paths for our country.”
“Actually, the path of an Obama tax plan is already set and it is going to be a real shock to most Americans,” says Phillips.
The President and Occupy Wall Street movement have routinely said that those making an adjusted gross income above $250,000 per year should pay more taxes. The tax increases coming in 2013 will affect almost everyone trying to make a living, not just those making over $250,000.
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The temporary payroll tax holiday, that has given every employee more money in 2011 and 2012, will expire, costing the average family an additional $1,000 a year. Obamacare will kick in, the tax increases passed to justify the debt ceiling will start, and the Bush tax cuts will expire.
The bottom line is the average family is looking at over $4,000 in increased taxes next year.
“There’s not much anyone can do about the tax increases, however anyone can take advantage of tax deductions. In fact, a lot of CPA's and tax preparers just plug in the numbers,” said Phillips. “Take advantage of every tax deduction and tax loophole,” he continued.
Businesses have more tax deduction options than individual tax payers; so many people are starting small businesses in order to take advantage of the tax planning options available to businesses.
Phillips said that anyone can use a small business, but there are tax tips that can be used without a business. “There are basically 11 tax shelters left in the IRS Code, and most people don’t have any idea how to use most of them,” he said.
Top White House adviser David Plouffe insisted on CNN Sunday that taxes have been cut for the middle class.
“In light of the tax increases that are coming, any tax decreases will be swallowed up. It isn’t even reasonable to say that people will be paying fewer taxes than they were under Bush,” Phillips insists.
“If tax payers want any relief, they have got to take matters into their own hands and take the initiative now,” he said.
LegaLees Corporation announced that they have put together a set of practical tax strategies that almost every middle class American can use. They claim that the average tax payer should be able to save ten percent in their taxes next year, just by knowing the tax strategies most accountants never discuss with their clients.
Phillips points out that for many people that will be over $1,000 a year.
Download these tax tips here.