President Barack Obama is still in talks with congress to push for them to come to an agreement with his plan to allow tax hikes for people in the upper income bracket. His goal is to keep people that make less than $250,000 from enduring tax increases.
At accounting firms all across the Permian Basin, the constant concern is "How can I avoid the looming fiscal cliff?"
Managing Partner Mike Anderson at Armstrong, Backus and Company LLC Certified Public Accountants when referring to the fiscal cliff said, "A combination of less money in your pocket and my pocket because more money will be going to Washington.
In essence, if the President and congress don't come to a common ground, the U.S. economy could potentially spiral back into the recession from which we just came. Currently the executive cabinet's want is to have people in the middle class be exempt from the taxes, but as the deadline near, that will soon be un-avoidable.
"If he and congress cannot reach an agreement then in fact everyone's taxes is gonna go up," said Anderson.
Although there is more than a week left before the December 31 deadline, and there is still a possibility that an agreement will be made, tax payers are still doing what they can to absorb some of the impact of the potential tax hike.
"A general rule on which we are advising our clients to do today is to accelerate the receipt of income into the current year so that it will be taxed lower rates than if they receive it next year in 2013," said Anderson.
In the past few weeks, Anderson has given out that advice more often in an effort to keep people from spiraling fast down the fiscal cliff.