When lawmakers vow to make sure middle class taxes don’t rise by a penny, there’s one thing they’re invariably ignoring. Working Americans are poised to face a tax hike next year no matter the outcome of fiscal cliff negotiations.
Employees’ share of the Social Security payroll tax is set to rise by 2 percentage points in 2013 after being lowered to 4.2 percent for two years. President Obama and Speaker John Boehner are at an impasse in fiscal cliff talks, but they’ve effectively agreed to end the payroll tax holiday.
That alone means the average working American would take home $40 less per paycheck. Although it would raise the federal government’s revenue by more than $100 billion for the year, it would also cause a hit to the economy because those with lower incomes spend more of their earnings.
Silly thinking that they were only Taxing the rich lol...
No comments:
Post a Comment