Eric Sepanek
SBC Founder
Eric Sepanek is the founder of Scottsdale Bullion & Coin, established in 2011. With extensive experience in the precious metals industry, he is dedicated to educating Americans on the wealth preservation power of gold and silver.
A giant tax tsunami is about to sweep over America, destroying markets, investments, savings and income. More than 100 million Americans will be swept away in the destruction, pulled out into a sea of taxes and expected to swim for their lives.
This tax tsunami will likely sink the American economy. It will inundate each taxpayer, business and nonprofit institution with higher taxes and lower incomes and profits. The Congressional Budget Office (CBO) rang the warning bell last week and said that if Congress fails to act before the end of the year, another two million workers will be thrown out into the street, joining the millions who are already unemployed. The CBO said that unemployment would likely rocket up to 9.1 percent from the current 8.2 percent.
The expiration of the Bush tax cuts at the end of this year will affect every taxpayer in the U.S., said lawyer and CPA Leon LaBrecque. It’s expected that the capital-gains tax rate will soar up 33 percent, rising from the current 15 percent to 20 percent. It’s possible that the 401-K market will collapse as people cash out to avoid the higher tax rate. A typical worker earning $37,000 annually will see a 76 percent tax increase. These and other tax increases will be the largest in 50 years.
Tax analysts are telling people to throw out the old strategy of saving now and paying lower taxes later. Should the Bush tax cuts expire, people can expect to pay more in taxes later. When people sell homes, property or stock, they will be taxed at the higher capital-gains rate.
These tax increases will affect how Americans save, the amount of income they earn, how businesses operate and how much money consumers can spend. Following are a few of the tax changes that take affect on Jan.1, 2013:
- The Social Security tax goes up nearly 50 percent, from 4.2 percent to 6.2 percent.
- The child tax credit is chopped by 50 percent, from $1,000 to $500.
- The Earned Income Credit is terminated.
- The 10 percent tax bracket goes up 50 percent to 15 percent.
- The 25 percent bracket jumps to 28 percent.
- The capital-gains tax on IRAs skyrockets 33 percent, going from 15 percent to 20 percent.
Unless Congress and the president act soon, millions of Americans will be swamped with giant tax increases that are the largest in five decades. Businesses may stop hiring, and people may stop investing.