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2013 -- New Tax Increase For New Year...

51hh
51hh   |     |   1,673 posts since 2010

From AP/Boston.com:

Taxes rising for most people despite fiscal deal - Business - Boston.com

"The Tax Policy Center, a nonpartisan Washington research group, estimates that 77 percent of American households will face higher federal taxes in 2013 under the agreement negotiated between President Barack Obama and Senate Republicans. High-income families will feel the biggest tax increases, but many middle- and low-income families will pay higher taxes too.

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."

Thanks Mr. Obama for the New Year present.




Shorebreak
Shorebreak   |     |   4,078 posts since 2010
"That’s because the legislation did nothing to prevent a temporary reduction in the Social Security payroll tax from expiring. In 2012, that 2-percentage-point cut in the payroll tax was worth about $1,000 to a worker making $50,000 a year."

Note the word "temporary". Instead of a tax "rise" why isn't it referred to as a "reversion" back to a normal rate?
me1004
me1004   |     |   537 posts since 2010
You're right, shorebreak. And in fact, that was the worst tax cut they could have made when they did it. That "payroll tax" they are renaming to call it was the Social Security tax! You know, the fund that everyone says will go broke if we don't fix it, and the Republicans are yelling to cut Social Security. Well, how is cutting the Social Security tax, as was done, going to fill that fund??! Duh!

If they wanted to cut taxes for the people who didn't lose their jobs and so weren't facing hardship they should have done it in a way that the money came from the general fund, not from the Social Security fund.