Skip to comments.Despite deal, taxes on most Americans will go up
Posted on 01/02/2013 12:21:51 PM PST by Ron C.
Taxes for most Americans will still go up this year despite declarations from President Obama and others touting Tuesday night's fiscal crisis deal as a victory for middle-class workers.
At the same time, tax relief that was included in the package comes at a cost -- contributing, along with new spending, nearly $4 trillion to the deficit over the next 10 years, adding to the nation's more than $16 trillion debt.
But there will be federal tax hikes in 2013. That's because the legislation pushed through the Senate and House on Jan. 1 does nothing to prevent a temporary cut in the Social Security payroll tax from expiring. That means, under the agreement brokered by the White House and Senate Republicans, 77 percent of American households will be forced to fork over higher federal taxes in 2013.
Households making between $40,000 and $50,000 will face an average tax increase of $579 in 2013, according to the Tax Policy Center's analysis. Households making between $50,000 and $75,000 will face an average tax increase of $822.
(Excerpt) Read more at foxnews.com ...
Yes, but we should all be proud that Boehner made a deal!
Boehner didn’t deal - he rolled over, as did a majority of the House. Not an ounce of fight in the man.
A few observations:
1. Why does the govt. insist on saying that continuing the Bush tax cuts has to be paid for? Where is it written in the constitution that the Clinton era taxes are now the standard amount we are “required” to give to the govt.? It’s OUR money, not Uncle Sam’s, and we need to point this out whenever and wherever we can.
2. The payroll tax cut destabilizes SS, so continuing this cut hastens its demise. It is a good thing it has been repealed, at least IMHO.
‘Weepy’ Boehner caved as we all knew he would and America gets screwed again by Obama and both the Democrat and Republican parties. Yet John Boehner will be handily re-elected as Speaker of the House on Thursday when the new congress convenes because out of 434 Representatives, many with years of experience in the House, no one dares to oppose him. This kind of Washington elitist rubbish is why the GOP has become useless and is fully complicit in the disintegration of our nation. Obama tears us down while Republican weasels in designer suits hold his coat.
They get just a few years - before they face total elimination.
My congressman went over the fiscal cliff and all I got was these lousy $400 Billion/year deficits.
When will Congress cut the Waste?
And that's fine. They shouldn't have cut the payroll tax in the first place.
BECAUSE OF BAD deal, taxes on most Americans will go up
Obama’s got to make it look like we can afford for him to continue cutting huge checks to countries that hate us.
The interest rates we pay are expanding China’s armed forces and the Wahhabi muslims need the money for jihad.
This is one of those things that really gets me peeved.
Didn't people report at the time that this was bad because it was really an under-funding of social security, and not really an INCOME tax reduction?
Wasn't the only reason that it passed was that it was TEMPORARY, like the article said? It was not a tax on income, it was a temporary reduction in the payroll contributions to social security.
Now that it's expiring, the MSM wants to now argue it the other way. It's no longer about saving social security. It's only about preventing more paycheck deductions.
Thanks to Obama, Dims and phony GOP congress-critters we’re all going to have a lot less money to spend AND the cost of everything is going to be going UP.
I'm very puzzled as to why anyone would think this bill, without a continuation of the payroll tax cut, will be a win for Obama.
I'm going to just make up some numbers because I'm too lazy to look up the actual numbers.
Imagine a person who lives on wages and who earns just enough, whether with a modest mortgage interest deduction or without, such that they pay 10% of their gross income as federal taxes.
Since such a person will be earning less than the maximum on which payroll taxes are based, they will now be paying an additional 2% of their GROSS income. As a percentage of prior taxes paid, that is a 20% increase in taxes being paid.
The lower a person's income, the higher the percentage increase they will face in having to pay the restored payroll tax.
I'm not pleased that those making a lot of money will be paying more, but it looks to me like those in the lower brackets are going to be paying A LOT more. And that's a good thing.
I don't see how millions of lower income wage earners aren't going to figure this out real soon. Even if they blame Republicans in part, there will be plenty of blame to go around and I don't see Obama looking very good here.
What am I missing?
Unfortunately, I don't think they will ever resign en masse and let us hire a productive bunch.
Or was there some other waste cutting you were thinking about?