Federal tax increase hits middle-class more than rich

Taxes - dummiesJan. 4, 2013

By John Seiler

Throughout the whole phony “fiscal cliff” crisis Democrats kept saying the “rich” had to “pay their fair share” so the middle-class wouldn’t get a tax increase. Republicans insisted that they were against all tax increases.

Both Democrats and Republicans then sold most of us out by jacking up taxes on 77 percent of Americans to make sure pork-barrel funding went to Hollywood and other special interests. Now you know why Hollywood honchos and actors supported Obama: They got a tax break.

Now, get this. Reports the Mail online:

“Middle-class workers will take a bigger hit to their income proportionately than those earning between $200,000 and $500,000 under the new fiscal cliff deal, according to the nonpartisan Tax Policy Center. 

“Earners in the latter group will pay an average 1.3 percent more – or an additional $2,711 – in taxes this year, while workers making between $30,000 and $200,000 will see their paychecks shrink by as much as 1.7 percent – or up to $1,784 – the D.C.-based think tank reported. 

“Overall, nearly 80 percent of households will pay more money to the federal government as a result of the fiscal cliff deal.”

It wasn’t a “fiscal cliff deal” but a plain old ripoff. The whole months-long drama about the “fiscal cliff” was just a misdirection as they prepared to rob us again.

Why do we put up with it?

5 comments

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  1. Eric
    Eric 4 January, 2013, 08:46

    I’m sorry, but I just don’t understand why 2yrs of payroll tax holiday gives everyone the impression that this is the new baseline, rather than the special gift it was. This was never intended by anyone to be permanent. And how could it be? Even at the full payroll tax rates Social Security is on shaky ground.

    Take payroll taxes out of the discussion as the red herring that it is, and the whole discussion changes.

    Look folks, the federal budget is $1,000,000,000,000 out of balance every year–how could any better be expected? The current annual budget deficit disgusts me.

    Reply this comment
  2. David in Irvine
    David in Irvine 4 January, 2013, 08:52

    As noted, the reason for this is restoration of the employee’s share of SS payroll taxes to 6.2%. This fact was basically ignored in the obsession of the media and politicians with where to set the income cut off for marginal tax rate hikes. Social Security is immoral to its core and this is only the latest example of why.

    Reply this comment
  3. Hondo
    Hondo 4 January, 2013, 09:46

    Why am I suprised that Obama passed a bill raising taxes on the poor at a greater rate than warren buffnut or bill gates. He had Boehner’s help.
    Hondo….

    Reply this comment
  4. Douglas
    Douglas 4 January, 2013, 11:00

    More “skin in the game”. It’s all good.

    Reply this comment
  5. Rex the Wonder Dog!
    Rex the Wonder Dog! 4 January, 2013, 12:42

    I agree 100% with Eric on #1. Good post Eric.

    Reply this comment

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fiscal cliffHollywoodJohn SeilerPresident Obama

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