January 2, 2013

The most underreported fact from the cliff

Bloomberg - The budget deal passed by the U.S. Senate today would raise taxes on 77.1 percent of U.S. households, mostly because of the expiration of a payroll tax cut, according to preliminary estimates from the nonpartisan Tax Policy Center in Washington.

More than 80 percent of households with incomes between $50,000 and $200,000 would pay higher taxes. Among the households facing higher taxes, the average increase would be $1,635, the policy center said. A 2 percent payroll tax cut, enacted during the economic slowdown, is being allowed to expire as of yesterday.

3 comments:

Anonymous said...

Hey Sam. This should bother me, but till they stop cutting payouts of SS while having working people and employers pay less money in, I just can't mind. They won't lift the cap. They're trying to get rid of this program and I was infuriated when they used the FICA tax as the source of relief. How about increasing wages, reducing CEO pay, tear up trade agreements... Now I'm just getting silly, I know. But a lot of older people just aren't making it on the low end of SS scale without help from families unless they managed to secure other assets along the way in their lives. I know you know what I mean; I know you know it's a dilemma. I just want them to leave this program alone.

Anonymous said...

Of course they carefully don't identify "payroll tax" as being the lesser-known name of "social security tax", the "cut" having been the first step in killing the program.

Anonymous said...

http://michael-hudson.com/2012/12/americas-deceptive-2012-fiscal-cliff/