The
Daily Mail reported:
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.
Editor's notes: to put it bluntly, this is a garbage criticism from the Right. I am a Right Winger. I never supported Obama's reduction of the FICA tax, that part of the payroll tax that supports Social Security. It should have never happened.
And Conservatives should have raised the roof over this "payroll deduction relief."
As it turns out, collections from the payroll tax have failed to cover annual expenses for Social Security beginning in 2010 and extending through 2012 . . . . . the same period of time Obama's reductions have been in effect.
You simply cannot find harsher stated criticism without trash talking filth, than is found on this blog --- but this particular criticism is Right Wing hyper crap. Returning to pre-2009 levels on FICA payroll deductions is the only reasonable course of action. If this is an Obama idea, re-implementing the full FICA tax, it is the right thing to do.
Obama's initial reduction as to this payroll tax, was irresponsible, from the beginning. The FICA tax is the only source of debt-free money into Social Security coffers and Social Security was carrying 17 trillion dollars in unfunded liabilities, at the time our presidential fiscal genius decided to buy more votes via this payroll reduction.
Point of post? Ain't it obvious?
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