Middle-Earners To Be Hit Hardest By Tax Deal : 80% To See Tax Increases.

Link : http://www.dailymail.co.uk/news/arti...scal-deal.html

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.




'The economy needs a stimulus, but under the agreement, taxes will go up in 2013 relative to 2012 - not only on high-income households, as widely discussed, but also on every working man and woman in the country, via the end of the payroll tax cut,' said William G. Gale, co-director of the Tax Policy Center.

'For most households, the payroll tax takes a far bigger bite than the income tax does, and the payroll tax cut therefore - as [the Congressional Budget Office] and others have shown - was a more effective stimulus than income tax cuts were, because the payroll tax cuts hit lower in the income distribution and hence were more likely to be spent,' he added.



When the deal was passed by Congress late Tuesday, President Obama said it prevented 'a middle class take hike that could have sent the economy back into recession' and have a 'severe impact' on American families.

'Under this law, more than 98 percent of Americans and 97 percent of small businesses will not see their income taxes go up,' he said.

To the contrary, the Tax Policy Center says roughly 70 percent of Americans will see their income taxes rise as a result of the deal. They won't rise as much as they would have if no deal had been reached and the fiscal cliff was triggered, but they will go up nonetheless.



The average increase in tax bills for all earners will be about $1,257.

While the lower brackets will take a bigger hit to their paychecks than those in the $200,000 to $500,000 bucket, their overall federal tax rate will remain smaller. And the biggest hit of all will still be felt by the nation's top income earners.

Obama made a tax hike on the nation's wealthiest central to his campaign for re-election.

Workers making more than $1 million will pay an average 7.8 percent more - or an additional $170,341 - under the new law.

The federal tax rate will be roughly 39 percent for that group, compared to 26 percent for those earning between $200,000 and $500,000 and 14 percent for those making between $40,000 and $50,000.

Good.

Shouldn't have been a tax break in the first place.

thanks Boehner!

Originally Posted by casino is no lie

Good.

Explain.

BHO claims the middle class is the one who needs the most help, yet the tax increase burdens them the greatest.

Originally Posted by SLVR JDM

Explain.

BHO claims the middle class is the one who needs the most help, yet the tax increase burdens them the greatest.

Just accept the fact that it doesn't matter WHAT happens. There are people on this forum, MSNBC, and all over that will just roll over like pigs in sh*t. During the election, they argued Romney wouldn't look out for the poor and the working class and would simply protect the rich... Obama wins and, under his watch, congress passes legislation that shafts the middle class the hardest and the liberal response is "well we need to do this".

It's worse than hypocrisy.. it's flat out celebrated ignorance. The one who yells nonsense the loudest (chris matthews) gets the tv program.

Originally Posted by SLVR JDM

Explain.

I've said it before and I will say it again. Until the majority of Americans feel the pain in their own wallets they will never demand change from those whom they elect to power. The decisions made in Washington have consequences. The American people have been sheltered from those consequences for too long.

some people still dont understand the difference between a new tax vs letting an old tax cut expire

Originally Posted by casino is no lie

I've said it before and I will say it again. Until the majority of Americans feel the pain in their own wallets they will never demand change from those whom they elect to power. The decisions made in Washington have consequences. The American people have been sheltered from those consequences for too long.

But you argued the case that Obama was best suited to serve in Washington because he would look after the middle class and the working class. His entire campaign was on the notion that the rich need to pay significantly more and that the lower class and middle class should be left alone... this passes and does the exact opposite. And now you sit there and argue that it's a good thing.

Stop talking out of both sides of your mouth and develop principles.

Originally Posted by bagher

some people still dont understand the difference between a new tax vs letting an old tax cut expire

The effective result is the same...

Originally Posted by 2000_328CI

But...

But nothing.

Liberals :

2012 : Celebrate Obama's core campaign message of X
2013 : Celebrate legislation passed under Obama's eyes that results in complete opposite of X

The ignorance never ceases to amaze me.

For a liberal to celebrate Obama's core campaign message, they MUST believe that this fiscal cliff legislation is immensely flawed. If anything, the legislation that was passed should put a smile on my face and a frown on yours. Instead, I inform the E46 audience and we find the liberals celebrating it... and all because it's tied to Obama.

This legislation is an immense F*CK YOU to everyone that voted Obama last year.

So f*cking amusing.

Doesn't change the fact that Romney still lost.

Originally Posted by casino is no lie

I've said it before and I will say it again. Until the majority of Americans feel the pain in their own wallets they will never demand change from those whom they elect to power. The decisions made in Washington have consequences. The American people have been sheltered from those consequences for too long.

This is about the only good thing to come from the raising of taxes...Similiar to that of gas prices raising, forces people into taking action towards alternative energy sources.

Originally Posted by 2000_328CI

Just accept the fact that it doesn't matter WHAT happens. There are people on this forum, MSNBC, and all over that will just roll over like pigs in sh*t. During the election, they argued Romney wouldn't look out for the poor and the working class and would simply protect the rich... Obama wins and, under his watch, congress passes legislation that shafts the middle class the hardest and the liberal response is "well we need to do this".

It's worse than hypocrisy.. it's flat out celebrated ignorance. The one who yells nonsense the loudest (chris matthews) gets the tv program.

To your credit, yes Obama lied to the American people. He said no taxes on the middle class and regardless of the circumstances taxes were raised, significantly. For me 2K+. It is even tougher to swallow when there is no spending cuts, hell cut spending and keep my taxes lower. Imagine if he hit the 250K crowd for 40% and hit them with this tax.

Originally Posted by 2000_328CI

Liberals...

Your entire existence is dependent on generalizations because you either lack the ability or the courage to specifically call out anyone. I can cite as far back, perhaps even further, than Dec. 2010 where I specifically stated:

Originally Posted by Me

I don't want to see a tax cut extension for anyone.

The nerve of you to come into this thread and fabricate a story that fits your warped sense of reality is both comical and insulting.

I'm neither celebrating nor decrying the expiration of the Payroll Tax Cut. Neither party contested it. I don't know what the big issue is.

Originally Posted by Green_Shine

To your credit, yes Obama lied to the American people. He said no taxes on the middle class and regardless of the circumstances taxes were raised, significantly. For me 2K+. It is even tougher to swallow when there is no spending cuts, hell cut spending and keep my taxes lower. Imagine if he hit the 250K crowd for 40% and hit them with this tax.

Fully agree.I've said for a long time I'm fine with a tax increase if we decrease spending.. a combined approach is the only way to fix this.

Instead, we're basically being asked to give more so they can spend more of our money recklessly.

Originally Posted by 'busa

Neither party contested it. I don't know what the big issue is.

The problem is the overwhelming sense of cognitive dissonance experienced by the OP that has forced him to sublimate his anger towards Liberals.

Originally Posted by casino is no lie

The problem is the overwhelming sense of cognitive dissonance experienced by the OP that has forced him to sublimate his anger towards Liberals.

What? The post wasn't aimed at "blaming liberals" from the get go. I am simply amazed that the "typical libs" on this forum defend the president here and are now of the tune that a tax hike for all is welcome legislation... after arguing the exact opposite during the campaigns.

I'm sorry but this is a HUGE middle finger to the "pay what's fair" campaign message and those who celebrated it....

Originally Posted by 2000_328CI

I am simply amazed that the "typical libs" on this forum defend the president here and are now of the tune that a tax hike for all is welcome legislation...

What did the defenders against taxes AKA conservatives do to prevent the Payroll Tax Cut from expiring?