Despite Congress and the Biden Administration’s bragging about not raising taxes, in 2024, your taxes will be significantly raised due to the expiration of the Trump-era tax cuts. In fact, the standard deduction of $26,000 for married couples filing jointly will be cut in half—that’s $13,000 married couples will lose to the government right off the top.
Americans are faced with record inflation eating away at household incomes largely because of the Biden Administration’s economic policies—the cost of food and fuel at levels never before experienced by this generation. Many Americans are suffering from the squeeze between their expendable income and an increase in the cost of items consumed.
In addition to the economic pressures, tax breaks that eased financial burdens are going away. The Hartford’s Gene Marks explains,
“A lot of these changes have to do with the 2017 Tax Act that was passed under the Trump administration. That tax act had a lot of provisions and benefits for individuals and small businesses, and a lot of the provisions of that tax act are starting to expire. So now, let me explain what I mean. At the end of 2025, individual tax rates are gonna go back to the 2017 levels, with the top tax rate going up to close to 39%…. The bottom line is taxes take a huge bite of your income, and there are significant changes coming to taxes over the next couple of years, and you need to be aware and take action now.”
This is due to Congress not renewing the Trump tax breaks and the IRS increasing its enforcement.
Bankrate Chief Financial Analyst Greg McBride says there is great pessimism among Americans regarding their financial future. McBride stated on Bankrate.com,
“A staggering 61 percent of those not expecting their financial situation to improve point to continued high inflation as a culprit–nearly twice that of any other reason. Of the 37 percent of households expecting improved finances in the new year, higher income, better spending habits, and less debt are the most common explanations for their optimism.”
Anna N’Jie-Konte, president and director of financial planning for Re-Envision Wealth, agrees:
“High interest rates, widespread layoffs, and staggering inflation at the grocery store are all real pressures folks currently feel. There is no relief in sight; therefore, it’s not hard to understand why Americans are pessimistic about their personal financial prospects.”
According to a recent CBS News poll,
“Inflation’s impact may even go beyond the immediate pressure on Americans’ pocketbooks, to a larger sense that it is stifling opportunity in America and the deeper sense that the nation’s economic troubles of recent years have been, as a whole, tougher than others it has faced in generations.”
Piling on another tax increase while politicians are saying there are no tax increases just adds to the financial burden suffered by most Americans.
Christ said in Mark 12:17, “Render to Caesar the things that are Caesar’s, and to God the things that are God’s.”
Caesar is oppressive in all things, but in God, there is perfect freedom. Lean in to the Lord, stand fast, and seek first the kingdom of God.
Posted in The Daily Jot