Congress has OK’d the new bill regarding the Fiscal Cliff at the beginning of the new year. The new bill will prevent the United States from going into a recession. It will extend the current tax rates for anyone making $400,000 or lower and those above will see a 3.6 percent tax increase.
Those who received a stimulus package in 2009 to pay for their children’s college will remain untouched, and no cuts will occur to Social Security, Medicare or Medicaid.
What does this mean for us? Most young adults do not make above the $400,000 minimum so we will only see slight increase in our taxes.
This would also mean that more college students would be receiving better financial aid packages. Most of them will no longer have to take out ridiculously high student loans and will have a much easier time gaining financial independence after graduation.
Nowadays, many college students still depend on their parents for financial support even after graduation. A job after receiving your diploma is no longer guaranteed and most loans must start being paid off six months after graduation, regardless of whether you have a steady income or not.
This new bill will hopefully lead to a strengthening of the economy and a positive outlook for all of us.
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