Dear Patriot,
Greetings to our constituents, fellow Floridians, and indeed all Americans, it is time to prepare our weekly update for dissemination.
As I hope you are aware, the Fiscal Year 2012 Actuaries and Trustees of Medicare and Social Security report has these two programs becoming insolvent by 2024 and 2033, respectively.
In our update last week we broke down the issue of Medicare for you to digest and disseminate to your friends. This week I want to elaborate on the situation surrounding the “fiscal cliff” upon which America finds itself.
Earlier this week the non-partisan Congressional Budget Office (CBO) reminded us of what lies ahead fiscally for America. The possibility of a full 1% growth in the already high unemployment rate come January 2013 is real.
We are currently operating under the Bush-Obama tax rates and six different tax brackets, which at this time are10%, 15%, 25%, 28%, 33%, and 35%. As of December 31, 2012 if no action is taken, these current tax brackets will jump to 15%, 15%, 28%, 31%, 36%, and 39.6%. A July 2012 study by the accounting firm Ernst and Young estimated this would result in nearly 710,000 jobs lost because of the net effect on close to two million small business owners.
Now, why is that so?