Thursday, June 24, 2010
New Middle Class Income Taxes Will Further Depress Residential Real Estate Prices
The Federal deficit is way too high. Even Democrats, like House Majority Leader Steny Hoyer admit that a middle class income tax is going to be necessary to raise money. Not just new taxes on "the rich" (above $250,000 per year for a married couple is the official Obama definition) and not just the expiration of the Bush-era tax cuts.
NEW taxes on the middle class.
The simple fact is that the tax code has become so progressive that the poor no longer pay income taxes in the United States. A full 40% of American households no longer pay any Federal income taxes.
This leaves the rich and the middle class. The rich are already getting savaged by the U.S. income tax code. The top 1% of all American households already pay a whopping 36% of all Federal income taxes.
So, that leaves the middle class, Steny Hoyer's latest target.
Higher taxes on middle class people means that real estate prices will fall. Why? Stayed tuned, but think about it in the meantime.
Robert J. Abalos, Esq.