Time to spend down your medical flexible savings account (FSA)
Tax moves to make in December 2012

Tax connections between consumer spending, tax rates & Powerball winnings

The U.S. economy is dependent on consumer spending. A threat to that spending and a lucky draw that gave a few folks many more disposable dollars were dicussued last week at my other tax blog.

Bankrate Taxes Blog iconThe White House released a report that says higher tax rates on the middle class are a major economic scourge.

The report by the President's Council of Economic Advisers predicts that if middle-class tax rates go up via expiration of the Bush-era tax cuts, plus the cost of an unaddressed alternative minimum tax increase, the country's real gross domestic product growth is likely to slow by 1.4 percentage points.

Two Powerball ticket holders saw their personal domestic product increase substantially. So did their associated tax collectors.

Owners of the two winning Powerball tickets -- one in Missouri and one in Arizona -- split the record $587.5 million jackpot. Federal and state tax collectors will get some of the winnings, too.

You can always check out my other tax posts over at Bankrate Taxes Blog, usually each Tuesday and Thursday.

If you happen to miss the original posts, check here the following weekend for a summary.

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