Recently a Roundup editorial discussed the undesirable impact of indiscriminate tax increases on citizens. Since then, the Arizona state sales tax has increased by 18 percent, the Town of Payson is raising its property tax and water rates, as has the Payson School District. Gila County is expected to increase its property tax rates. Meanwhile, the value of homes in Payson have decreased up to 25 percent. In addition, local cable rates have increased as has the APS rate for electricity since a year ago. A gallon of gasoline is higher from a year ago and is expected to go higher. My insurance company has announced to expect a substantial premium increase beginning in 2011 for medical coverage. Have you shopped for groceries lately?
On the national level, the federal income tax deduction for medical expenses will be reduced by $2,500 in 2013. The lapse of the federal tax rate reductions at the end of this year will increase taxes in selected areas including capital gains. According to news reports, the Obama administration is considering the elimination and/or the lowering of the tax deduction for interest paid on homes, and the implementation of a federal VAT(value added tax) that could increase the cost of everything that you purchase by as much as 15 percent.
Will your wages or retirement income keep up with these increases? In most cases, I doubt it.
The November 2010 and future elections cannot come soon enough!