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Jan
16

Remember When (Part 1)

Remember when President Obama said "under my plan, no family making under $250,000 a year will see ANY form of tax increase"?  Well, like all of his promises it came with an expiration date.....

American workers are opening their first paychecks of the year and finding an unpleasant surprise: The government's take has gone up.

A temporary cut in Social Security withholdings gave Americans hundreds of extra dollars to spend over the past two years. But Congress allowed that break to expire during the wrangling over the fiscal cliff, meaning that Social Security taxes have reverted to 6.2% of salary from the temporary 4.2%.

The change left some of the President's staunchest supporters sputtering in anger and disbelief.

“What happened that my Social Security withholding’s in my paycheck just went up?” a poster wrote on the liberal site DemocraticUnderground.com. “My paycheck just went down by an amount that I don’t feel comfortable with. I guarantee this decrease is gonna’ hurt me more than the increase in income taxes will hurt those making over 400 grand. What happened?”

But those hurt worst by this tax increase are middle class families, families that the President swore he would protect.

The noticeable lightening of paychecks as consumers remain tentative threatens to put a drag on economic growth. The effect for companies is that the hit is likely to cement a frugal attitude that led consumers to cut back on eating out and shift to less-expensive store brands.

Kari Barker, an accountant in Salt Lake City, recently received her first 2013 paycheck and realized that she and her husband will take home $250 less every month. The 32-year-old, who works as a financial controller for a medical-devices company, accepted a second job last week doing accounting work for a friend's startup company.

But those aren't the only taxes on the "middle class" that are going up.  Take a look at the 2012 tax tables:

2012 tax rates
Tax rate    Single filers    Married filing jointly    Married filing separately    Head of household
10%    Up to $8,700           Up to $17,400                Up to $8,700                    Up to $12,400
15%    $8,701 - $35,350        $17,401 - $70,700       $8,701- $35,350             $12,401 - $47,350
25%    $35,351 - $85,650      $70,701 - $142,700     $35,351 - $71,350          $47,351 - $122,300
28%    $85,651 - $178,650    $142,701 - $217,450     $71,351 - $108,725       $122,301 - $198,050
33%    $178,651 - $388,350    $217,451 - $388,350    $108,726 - $194,175    $198,051 - $388,350
35%    $388,351 or more        $388,351 or more         $194,176 or more         $388,351 or more

Versus the 2013 tax rates:

Rate     Single Filers                   Married Joint Filers     Head of Household Filers
10%     $0 to $8,925                 $0 to $17,850                 $0 to $12,750
15%     $8,925 to $36,250         $17,850 to $72,500         $12,750 to $48,600
25%     $36,250 to $87,850       $72,500 to $146,400        $48,600 to $125,450
28%     $87,850 to $183,250      $146,400 to $223,050      $125,450 to $203,150
33%     $183,250 to $398,350     $223,050 to $398,350     $203,150 to $398,350
35%     $398,350 to $400,000     $398,350 to $450,000     $398,350 to $425,000
39.6%     $400,000 and up          $450,000 and up             $425,000 and up

We now have an added tax bracket right smack in the middle of the "middle class"....The top bracket went up and anyone making $85,000 a year and up gets bumped up a bracket!  So much for not raising taxes on those making LESS than $250,000 a year eh?

And while the President's DU supporters wail and wonder what happened, Republicans are shaking their heads.  We TOLD YOU this was coming and yet you act shocked when a lying Chicago politician lies to you. 

It just proves the old saying "There's a sucker born every minute."

Written by LL.

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