http://abcnews.go.com/Business...tory?id=6975547&page=1
President Barack Obama's tax proposal ? which promises to increase taxes for those families with incomes of $250,000 or more -- has some Americans brainstorming ways to decrease their pay, even if it's just by a dollar.
A 63-year-old attorney based in Lafayette, La., who asked not to be named, told ABCNews.com that she plans to cut back on her business to get her annual income under the quarter million mark should the Obama tax plan be passed by Congress and become law.
So far, Obama's tax plan is being looked at skeptically by both Democrats and Republicans and therefore may not pass at all.
"We are going to try to figure out how to make our income $249,999.00," she said.
"We have to find a way out where we can make just what we need to just under the line so we can benefit from Obama's tax plan," she added. "Why kill yourself working if you're going to give it all away to people who aren't working as hard?"
The attorney says that in order to decrease her income she'll have to let go of clients, some of whom she's been counseling for more than a decade.
"This means I'll have to tell some of my clients we can't help them and being more selective in general about who we help," she said. "I hate to do it."
Obama's budget proposal calls for $989 billion in new taxes over the next 10 years, most of which will be earned from increased taxes on individuals who make more than $200,000 and from families who make more than $250,000.
The expiration of the Bush administration's tax cuts at the end of 2010 would garner an estimated $338 billion, $179 billion would come from the elimination of some itemized deductions for higher-income taxpayers and $118 billion would be brought in from a hike in the capital gains tax. The remaining $353 billion would come from taxes on businesses.
Dr. Sharon Poczatek, who runs her own dental practice in Boulder, Colo., said that she too is trying to figure out ways to get out of paying the taxes proposed in Obama's plan.
"I've put thought into how to get under $250,000," said Poczatek. "It would mean working fewer days which means having fewer employees, seeing fewer patients and taking time off."
"Generally it means being less productive," she said.
"The motivation for a lot of people like me ? dentists, entrepreneurs, lawyers ? is that the more you work the more money you make," said Poczatek. "But if I'm going to be working just to give it back to the government -- it's de-motivating and demoralizing."
Gary Schatsky, a financial adviser and the president of N.Y.-based Objectiveadvice.com, said that it is possible to successfully remove yourself from the bracket Obama plans to target in his new plan.
"It's very possible that there are plenty of things you can do with general tax planning techniques ? attempting to recognizes loses, pushing gains to years when your income is lower and increasing retirement plan contributions ? to come below $250,000," said Schatsky.
"If the value of all your itemized deductions goes from a 33 percent level to a 28 percent level than there would be a reason for people to do dramatic things to reduce their incomes," said Schatsky.
But Colorado dentist Poczatek says those who support the increase in taxes misunderstand what it means for those who will end up paying more.
"I'd like these people to know that we pay a lot of taxes, and have been paying a lot of taxes through the past administration," said Pcozatek.
"We make a lot of money, it's true, but we also already pay a lot of taxes," she said.
"So maybe we got a little bit successful but we worked very hard," she said. "It's taken us over 30 years and it didn't happen overnight. Every day is a lot of work.
"We're working for it and we're still overtaxed."
Welcome to the new USA: Where hard work only matters to a limit and it makes more sense to work less and/or have a spouse quit work than it does to be a 'maker of things'. Instead you can be a maker of less things.
I know numerous 2 income families in this ballpark. They're certainly preparing for the class war Zero has declared.
Good for these people; they are preserving the American dream.
President Barack Obama's tax proposal ? which promises to increase taxes for those families with incomes of $250,000 or more -- has some Americans brainstorming ways to decrease their pay, even if it's just by a dollar.
A 63-year-old attorney based in Lafayette, La., who asked not to be named, told ABCNews.com that she plans to cut back on her business to get her annual income under the quarter million mark should the Obama tax plan be passed by Congress and become law.
So far, Obama's tax plan is being looked at skeptically by both Democrats and Republicans and therefore may not pass at all.
"We are going to try to figure out how to make our income $249,999.00," she said.
"We have to find a way out where we can make just what we need to just under the line so we can benefit from Obama's tax plan," she added. "Why kill yourself working if you're going to give it all away to people who aren't working as hard?"
The attorney says that in order to decrease her income she'll have to let go of clients, some of whom she's been counseling for more than a decade.
"This means I'll have to tell some of my clients we can't help them and being more selective in general about who we help," she said. "I hate to do it."
Obama's budget proposal calls for $989 billion in new taxes over the next 10 years, most of which will be earned from increased taxes on individuals who make more than $200,000 and from families who make more than $250,000.
The expiration of the Bush administration's tax cuts at the end of 2010 would garner an estimated $338 billion, $179 billion would come from the elimination of some itemized deductions for higher-income taxpayers and $118 billion would be brought in from a hike in the capital gains tax. The remaining $353 billion would come from taxes on businesses.
Dr. Sharon Poczatek, who runs her own dental practice in Boulder, Colo., said that she too is trying to figure out ways to get out of paying the taxes proposed in Obama's plan.
"I've put thought into how to get under $250,000," said Poczatek. "It would mean working fewer days which means having fewer employees, seeing fewer patients and taking time off."
"Generally it means being less productive," she said.
"The motivation for a lot of people like me ? dentists, entrepreneurs, lawyers ? is that the more you work the more money you make," said Poczatek. "But if I'm going to be working just to give it back to the government -- it's de-motivating and demoralizing."
Gary Schatsky, a financial adviser and the president of N.Y.-based Objectiveadvice.com, said that it is possible to successfully remove yourself from the bracket Obama plans to target in his new plan.
"It's very possible that there are plenty of things you can do with general tax planning techniques ? attempting to recognizes loses, pushing gains to years when your income is lower and increasing retirement plan contributions ? to come below $250,000," said Schatsky.
"If the value of all your itemized deductions goes from a 33 percent level to a 28 percent level than there would be a reason for people to do dramatic things to reduce their incomes," said Schatsky.
But Colorado dentist Poczatek says those who support the increase in taxes misunderstand what it means for those who will end up paying more.
"I'd like these people to know that we pay a lot of taxes, and have been paying a lot of taxes through the past administration," said Pcozatek.
"We make a lot of money, it's true, but we also already pay a lot of taxes," she said.
"So maybe we got a little bit successful but we worked very hard," she said. "It's taken us over 30 years and it didn't happen overnight. Every day is a lot of work.
"We're working for it and we're still overtaxed."
Welcome to the new USA: Where hard work only matters to a limit and it makes more sense to work less and/or have a spouse quit work than it does to be a 'maker of things'. Instead you can be a maker of less things.
I know numerous 2 income families in this ballpark. They're certainly preparing for the class war Zero has declared.
Good for these people; they are preserving the American dream.
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