This fall, we are likely to hear a lot of rhetoric about the tax provisions which expire on December 31st. Many on the left, including media outlets like the New York Times, suggest President Obama would be giving you a tax cut by extending current law. That may be the way the media and “inside the beltway” crowd want to spin it, but it’s important to remember that if nothing is done, we will all pay more to the IRS in 2011. If the tax cuts are extended, your taxes will not go down. You will be paying at the same rate you are in 2010.
Many rightly point out that President Obama’s public position is in support of extending the tax cuts for all but the richest Americans. His tax plan would allow some portions of the 2001 and 2003 tax cuts to remain in place and others to expire. The result would be steep tax hikes beginning in January 2011 for small businesses and those earning $250,000 or more.
What does this mean for those in New Hampshire who make less than $250,000? Substantial job losses.
According to The Heritage Foundation’s new economic study, New Hampshire would lose, on average, 3,415 jobs annually if all the current tax rates were not extended permanently.
Click here to see more information on New Hampshire impacts, with charts like the one below, including breakdowns by Congressional District.
To see the full national report, click here.