Growing Government Deficit Could Mean Higher Tax Bill for Atlanta Consumers
For some debt-riddled homeowners, the only way to make owning a home affordable is being able to take the mortgage interest deduction. But now it looks like Uncle Sam could revoke that tax break and similar deductions to pay for his own debts.
With the government deficit growing, President Obama has appointed a commission aimed at finding ways to balance the federal budget by 2015, according to MSNBC.com. And one way the commission could cut costs is by eliminating up to $1 trillion in tax breaks - including the popular mortgage interest deduction and child tax credit. That could mean a higher income tax bill for the majority of Americans, say Atlanta bankruptcy attorneys.
The good news is that experts don't think the government would actually eliminate major tax deductions, especially not at a time when most folks are struggling financially as it is. The bad news is, some kind of modification may be likely - meaning you'll still save money, but not by as much.
And until commissioners come to a decision, it will be hard for Americans to know exactly how much to pay come April 15. But just because you can't control the size of your tax doesn't mean you can't control its impact on your finances. Nobody likes to hear it, but saving money for your taxes today can help ensure that you can handle the bill when it comes time to pay.
For some folks, socking away more money means slightly increasing the amount they're saving already - whether for an emergency fund, for investing, for buying a home or just for a rainy day. But for many of us, debt gets in the way. It's hard to stash extra cash when you're barely able to pay the bills. However, if you can find a way to lower your debt, you'll free up money that would have gone to your creditors. Bankruptcy can offer an affordable way to get started. Not sure if bankruptcy is right for you? It's free to find out for yourself when you try a complimentary personal debt analysis courtesy of an Atlanta bankruptcy attorney.