Barack Obama's massive middle class tax hike

[skeemer]

With the passage of the fiscal cliff bill, the Democrats and Barack Obama have successfully raised taxes on millions of middle class workers, as the payroll tax holiday was not extended as part of the bill. Thanks to Obama, the a typical American household will see their out of pocket taxes go up by approximately $1000 in 2013, or roughly $83 per month.

Job well done!

Edit for link:

http://www.nytimes.com/2013/01/02/bu...plan.html?_r=0

But lawmakers’ decision not to reverse a scheduled increase in the payroll tax that finances Social Security, while widely expected, still means that about 77 percent of households will pay a larger share of income to the federal government this year, according to the center’s analysis.

The tax this year will increase by two percentage points, to 6.2 percent from 4.2 percent, on all earned income up to $113,700.

[Fang]

With the passage of the fiscal cliff bill, the Democrats and Barack Obama have successfully raised taxes on millions of middle class workers, as the payroll tax holiday was not extended as part of the bill. Thanks to Obama, the a typical American household will see their out of pocket taxes go up by approximately $1000 in 2013, or roughly $83 per month.

Job well done!

Do you have a link? Or rather more specifcally, what is the payroll tax holiday?

[soulflower]

Most people didn't notice the payroll tax cut and likely won't notice the tax increase.

It was a relatively small tax cut but it lowered the amount of money we pay into Social Security...

[Marshan Man]

FICA goes back up... as it would've done anyway with or without Obama...

[gonzoliberal]

Yeah, gommint's expensive.

So is chaos.

Pay up and shut up...

[Baltimatt]

I noticed it when we got it. I'll notice it when it goes away.

[Struds]

Most people didn't notice the payroll tax cut and likely won't notice the tax increase.

It was a relatively small tax cut but it lowered the amount of money we pay into Social Security...

I'm surprised it wasn't accompanied by a raise in or a removal of the cap on pay.

[soulflower]

I'm surprised it wasn't accompanied by a raise in or a removal of the cap on pay.

I agree. The salary cap on payroll taxes should be raised. It hasn't been raised in over 20 years I think...

[Fang]

With the passage of the fiscal cliff bill, the Democrats and Barack Obama have successfully raised taxes on millions of middle class workers, as the payroll tax holiday was not extended as part of the bill. Thanks to Obama, the a typical American household will see their out of pocket taxes go up by approximately $1000 in 2013, or roughly $83 per month.

Job well done!

Edit for link:

http://www.nytimes.com/2013/01/02/bu...plan.html?_r=0

Ah, thanks.

Yes, technically this is a tax increase for the middle class. Didn't Obama say no tax hikes on the middle class? I would say this along with the health care tax is pretty big.

Of course, since the tax hike is on Social Securty technically we get it all back in retirement.

[mikep]

This won't get any press. In fact the press keeps saying that there was no increase on the middle class. Thats a lie. According to the link below taxes will increase an average of $1635 a year for the $50k to 200k income range. Yet the bozo's in Washington are all smiles and patting themselves on the back for screwing us. You get what you vote for.

http://www.bloomberg.com/news/2013-0...ouseholds.html

[skeemer]

Of course, since the tax hike is on Social Securty technically we get it all back in retirement.

http://i13.tinypic.com/2nb7yhf.jpg

[flyboy56]

The AMT was not addressed in this new bill.

Without a change to current law, millions of American families will begin the new year with a rather costly and unwelcome gift delivered courtesy of the IRS.

In the absence of an alternative minimum tax fix, roughly 28 million taxpayers — about a third of all those who pay income taxes — will see their bill skyrocket.

The AMT hike translates roughly to an average increase of more than $3,200. To put this number in perspective, President Barack Obama’s proposed tax increases on the highest earners are set to bring in about $80 billion in additional revenues next year. The AMT hike will amount to $92 billion.

http://garrett.house.gov/garrett-amt...e-middle-class

[skeemer]

Most people didn't notice the payroll tax cut and likely won't notice the tax increase.

It was a relatively small tax cut but it lowered the amount of money we pay into Social Security...

We certainly noticed it as I increased my 401k contributions when the holiday went into effect. With a baby on the way I had planned to return my contribution rate from 10% to the 8% it was at before, so this will certainly be felt in both the paycheck and in my retirement.

[skeemer]

The AMT was not addressed in this new bill.

Without a change to current law, millions of American families will begin the new year with a rather costly and unwelcome gift delivered courtesy of the IRS.

In the absence of an alternative minimum tax fix, roughly 28 million taxpayers — about a third of all those who pay income taxes — will see their bill skyrocket.

The AMT hike translates roughly to an average increase of more than $3,200. To put this number in perspective, President Barack Obama’s proposed tax increases on the highest earners are set to bring in about $80 billion in additional revenues next year. The AMT hike will amount to $92 billion.

http://garrett.house.gov/garrett-amt...e-middle-class

Politicians are awesome.

[flyboy56]

Politicians are awesome.

Real tax reform is needed. The AMT was created in the 60's to prevent the rich from using tax loop holes. That was when the rich made only $200,000 a year. Middle class now make that in a year.

[skeemer]

Real tax reform is needed. The AMT was created in the 60's to prevent the rich from using tax loop holes. That was when the rich made only $200,000 a year. Middle class now make that in a year.

Incorrect. See President Obama.

[soulflower]

We certainly noticed it as I increased my 401k contributions when the holiday went into effect. With a baby on the way I had planned to return my contribution rate from 10% to the 8% it was at before, so this will certainly be felt in both the paycheck and in my retirement.

Congrats on becoming a Dad.

When the payroll tax cut was passed it was made clear that it was temporary. Hence the term "tax holiday"

I don't think it was worth it given that we have enough problems with trying to fund entitlements.

[soulflower]

Real tax reform is needed. The AMT was created in the 60's to prevent the rich from using tax loop holes. That was when the rich made only $200,000 a year. Middle class now make that in a year.

Individual income of 200k a year isn't middle class.

[flyboy56]

Incorrect. See President Obama.

There are facts and then there are Obama's facts. It you tell a lie using short sound bites over and over again people begin to believe it. It's called mass brain washing when using the media to get the message out.

[flyboy56]

To a tea-party-influenced crop of House Republicans, the bill to resolve the “fiscal cliff” crisis was everything they had wanted to change about the way Washington worked. Too rushed. Too bloated. Too secretive. Too expensive.

The bill was 153 pages long. It was written only the day before, by Washington insiders working in the dark of night. It was crammed with giveaways and legislative spare parts: tax breaks for wind farms and racetracks. A change to nuclear-weapons policy. Government payments for cheese.

And, most significantly, the bill will raise taxes but do relatively little to cut government spending or the massive federal deficit.

Read more here: http://www.charlotteobserver.com/201...#storylink=cpy