Meanwhile The Federal Reserve is putting a more positive spin on the situation.
Which is correct?
They both are.
Because of the temporary tax breaks for individual tax payers, more money is making it’s way into people’s bank accounts, which allows people to breathe a little easier when it comes to making ends meet.
Because of the permanent tax breaks for corporations, plus the incentives for corporations to re-patriate money back onto US soil, corporations are relaxing a little and some are even starting to share the increased profits they now make with their employees.
Right now, it’s a win-win situation. Here’s the problem: did you notice who has the temporary tax break? The individual tax payer. Meaning at some point in time, those tax breaks will end.
This is the time for anyone who has debt to pay it off, as quickly as possible. If you are struggling to buy food, do so as cheaply as possible, stock up on non-perishable food items and do everything you can to put money into savings.
Once those tax breaks end, it’s going to be much harder for you to survive, particularly when the prices of goods and services increase.
Don’t spend your tax breaks on a new phone or bling. Sock it away in savings. Reduce as much as you can on what you spend on a monthly basis.
You will be glad you did.
No comments:
Post a Comment