CLOSING THE DEFICIT

A couple weeks ago I posted the Tax Foundation's estimation of where tax rates will have to go to close the deficit. The foundation also calculated the average federal income tax payments that would be necessary to close the deficit. This exercise is even scarier. Right now the federal government takes in roughly $19,000 per household and spends $33,000. How much more would different taxpayers earning different incomes have to pay to close that gap?

These dollar amounts really put the gap into perspective. This reinforces what I've been saying all along...TAX PLANNING IS MORE IMPORTANT NOW THAN EVER.

Larry Kopsa CPA