Middle-class workers will take a bigger hit to their income proportionately than those earning between $200,000 and $500,000 under the new fiscal cliff deal, according to the nonpartisan Tax Policy Center.
Earners in the latter group will pay an average 1.3 percent more – or an additional $2,711 – in taxes this year, while workers making between $30,000 and $200,000 will see their paychecks shrink by as much as 1.7 percent – or up to $1,784 – the D.C.-based think tank reported.
Overall, nearly 80 percent of households will pay more money to the federal government as a result of the fiscal cliff deal.
‘The economy needs a stimulus, but under the agreement, taxes will go up in 2013 relative to 2012 – not only on high-income households, as widely discussed, but also on every working man and woman in the country, via the end of the payroll tax cut,’ said William G. Gale, co-director of the Tax Policy Center.
‘For most households, the payroll tax takes a far bigger bite than the income tax does, and the payroll tax cut therefore – as [the Congressional Budget Office] and others have shown – was a more effective stimulus than income tax cuts were, because the payroll tax cuts hit lower in the income distribution and hence were more likely to be spent,’ he added.
Great new video from the folks at Bankrupting America as they check in with Santa Clause who was in D.C. recently and asked him how his business was fairing during these uncertain economic times.
AMF Bowling Worldwide Inc., the world’s largest bowling operator, filed for Chapter 11 bankruptcy protection to restructure its mounting debt.
The Hanover County-based company said this morning that it filed a pre-arranged petition with the U.S. Bankruptcy Court in Richmond.
AMF said it expects completing the restructuring process and exiting Chapter 11 within five months.
AMF operates a location in Lynchburg near the intersection of U.S. 29 and Candlers Mountain Road, near James T. Davis Paint Center.
The company said it will continue its normal business operations during the Chapter 11 process, and its bowling centers will maintain normal operating schedules.
AMF said it has reached an agreement with a majority of its secured first lien lenders and the landlord of a majority of its bowling centers to restructure it finances, which the company said will result in the elimination of a significant amount of its outstanding debt.
“One of President Obama’s winning points last night was about how sanctions against Iran are crippling their economy… and believe me if anyone knows how to cripple an economy it’s President Obama!” – Jay Leno
NEW YORK (CBS 2) — Every time you use your credit card, the store pays up to 3 percent of your total purchase to the credit card company. It’s called a “swipe fee” and now some fed-up retailers are getting ready to pass this cost on to you, in the form of a surcharge.
While others want to reward you for paying with cash.
Paper or plastic? It’s a simple choice, but it’s about to get a lot more complicated, CBS 2′s Emily Smith reported.
“You’re going to start to see retailers really weighing what they’re going to charge consumers for using a credit card,” said Kelli Grant of Smart Money magazine.
That’s right, major retailers — from supermarkets to drug stores — may soon be charging you more if you choose to pay for an item with a credit card, instead of paying with cash.
“An extra 2 to 3 percent,” Grant said.
It’s all because Visa-MasterCard and several major banks settled a long running lawsuit alleging they conspired to fix “swipe fees.”
As part of the settlement, retailers are now allowed to charge customers a surcharge if they pay with plastic.
“It’s going to be, for consumers, an interesting dance of convenience versus cash,” Grant said.
Grant, a consumer expert, said up until now most business owners rolled the cost of processing a credit card into the prices customers pay. But for businesses that sell small-ticket items and are hit hard by 3 percent swipe fees, it may make more sense to ask for the surcharge.
