A couple weeks ago I wrote about the Bush tax cuts and the need for Congress to act before they expire at the end of 2010. For those of you confused about what this expiration will mean for you, allow me to direct you to a new resource from the Tax Foundation: the "Bush tax cuts" calculator. This tool will allow taxpayers to estimate their 2011 federal income tax liabilities if the tax cuts expire completely, extend into 2011 or are made permanent, or if President Obama's budget is adopted (which includes a combination of expirations and extensions).
Be as detailed as you wish! You can type in basic information such as filing status and wage income, or go so far as to add capital gains and dividend income, itemized deductions, etc. As just one example, the Tax Foundation claims that federal income taxes for a married couple filing jointly (making $80,000 with two children) would be $2,137 higher in 2011 if the cuts are not extended. This looks like a middle class family to me! What happened to President Obama's promise to not tax families earning less than $250,000 a year?
This is a really creative initiative that will help taxpayers understand how they might be personally impacted. It's an issue that needs to be at the forefront of political discussion and, hopefully, we can get it there. Call your leaders and tell them to take action now and extend these important tax cuts!