Government Debt Could Mean Disappearing Tax Breaks for Struggling Chicago Residents
Paying taxes is tough enough as it is. But now popular tax credits could disappear thanks to Uncle Sam's overspending.
According to MSNBC.com, there's a federal commission currently looking at ways to lower the government deficit - including doing away with breaks like the child tax credit or mortgage interest deduction. Eliminating those credits could save $1 trillion annually, but would be a slap in the face to taxpayers already struggling to afford the mortgage and put food on the table, say Chicago bankruptcy attorneys.
On the one hand, experts say chances are slim that the House and Senate would go for outright removal of the longstanding tax credits - especially at a time when so many folks are out of work and/or deep in debt. But still, lawmakers could choose to alter the current credits - i.e., consumers would still get some sort of tax break, but maybe not as much.
That leaves taxpayers in a tight spot because we can't easily estimate how much we'll be paying - or getting back - in future income tax seasons. But while we can't ultimately control the amount of our tax, we may be able to control how it affects us. By saving money for taxes today, a higher tax - heck, any tax -will be less painful to pay tomorrow.
Saving might mean socking away a little more of each paycheck. Maybe it requires cutting back a few expenses here and there. Or it might mean lowering debt. Too much debt can get in the way of saving by eating up any excess income. But you can reverse the effect of debt and interest when you begin paying your balance. If your debts are too overwhelming to manage alone, bankruptcy can provide an effective way to help you along. Have questions about bankruptcy? Consider trying a free, no strings personal debt analysis with a Chicago bankruptcy attorney. You've got nothing to lose - but a lot to gain.